Article Sidebar

Download
PDF
Statistic
Read Counter : 195 Download : 746

Main Article Content

Abstract

This study aims to examine the effect of permanent and temporary differences as well as book-tax differences on profit growth in property and real estate firms listed on the Indonesia Stock Exchange (IDX). Permanent differences refer to the differences between taxable income and accounting income that cannot be reversed in the future, while temporary differences are the differences that will reverse over time. The study focused on the sub-sector of property and real estate, which was selected because these companies are considered high-risk and often adopt strategies to legally minimize their tax burden in order to maximize profits.. Purposive sampling was used to select a sample of 12 property and real estate firms that consistently published audited financial statements in Indonesian Rupiah from 2018 to 2021 and did not undergo delisting from the IDX during that period. The results of the analysis reveal that profit growth is positively and significantly influenced by both permanent and temporary differences. However, there was no significant impact observed from book-tax differences. These findings may provide insights for policymakers and investors in the property and real estate sector.

Keywords

Permanent Difference Temporary Difference Book-Tax Difference Profit Growth

Article Details

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Qolbiyah, Q., Alamsyahbana, M. I., Chartady, R., Armansyah, A., & Welly, Y. (2023). Book-Tax Differences and Profit Growth: Evidence from Indonesia. Ilomata International Journal of Tax and Accounting, 4(2), 181-194. https://doi.org/10.52728/ijtc.v4i2.708

References

  1. Ait Novatiani, R., Afiah, N. N., & Sumantri, R. (2022). RISK MANAGEMENT AND OTHER FACTORS PREVENTING FRAUDULENT FINANCIAL REPORTING BY STATE-OWNED ENTERPRISES IN INDONESIA. Asian Economic and Financial Review, 12(8), 686–711. https://doi.org/10.55493/5002.v12i8.4587
  2. Al Sarrah, M., Ajmal, M. M., & Mertzanis, C. (2020). Identification of sustainability indicators in the civil aviation sector in Dubai: a stakeholders’ perspective. Social Responsibility Journal, 17(5), 648–668. https://doi.org/10.1108/SRJ-06-2019-0203
  3. Alblooshi, B. G. K. M., Ahmad, S. Z., Hussain, M., & Singh, S. K. (2022). Sustainable management of electronic waste: Empirical evidences from a stakeholders’ perspective. Business Strategy and the Environment, 31(4), 1856–1874. https://doi.org/10.1002/bse.2987
  4. Anesa, M., Gillespie, N., Spee, A. P., & Sadiq, K. (2018). The legitimation of corporate tax minimization. Accounting, Organizations and Society, xxxx. https://doi.org/10.1016/j.aos.2018.10.004
  5. Asyik, N. F., Wahidahwati, & Laily, N. (2022). The Role of Intellectual Capital in Intervening Financial Behavior and Financial Literacy on Financial Inclusion. WSEAS Transactions on Business and Economics, 19, 805–814. https://doi.org/10.37394/23207.2022.19.70
  6. Brünahl, C. A., Hinding, B., Eilers, L., Höck, J., Hollinderbäumer, A., Buggenhagen, H., Reschke, K., Schultz, J.-H., & Jünger, J. (2022). Implementing and optimizing a communication curriculum in medical teaching: Stakeholders’ perspectives. PLoS ONE, 17(2 February). https://doi.org/10.1371/journal.pone.0263380
  7. Duçi, E. (2021). The relationship between management accounting, strategic management accounting and strategic cost management. Academic Journal of Interdisciplinary Studies, 10(5), 376–389. https://doi.org/10.36941/ajis-2021-0146
  8. Dudley, E., Andrén, N., & Jankensgård, H. (2022). How do firms hedge in financial distress? Journal of Futures Markets, 42(7), 1324–1351. https://doi.org/10.1002/fut.22336
  9. Gazzola, P., Pezzetti, R., Amelio, S., & Grechi, D. (2020). Non-financial information disclosure in Italian public interest companies: A sustainability reporting perspective. Sustainability (Switzerland), 12(15). https://doi.org/10.3390/su12156063
  10. Gleißner, W., Günther, T., & Walkshäusl, C. (2022). Financial sustainability: measurement and empirical evidence. Journal of Business Economics, 92(3), 467–516. https://doi.org/10.1007/s11573-022-01081-0
  11. Hanson, T. A., & Olson, P. M. (n.d.). Financial literacy and family communication patterns. Journal of Behavioral and Experimental Finance, 19, 64–71.
  12. Hery. (2016). Akuntansi Dasar1&2. PT Grasindo, Anggota IKAPI.
  13. Hery. (2022). Akuntansi dan Rahasia di Baliknya untuk Para Manajer Non-Akuntansi (Fandi Hutari, Ed.). PT Bumi Aksara.
  14. Leoni, G., Lai, A., Stacchezzini, R., Steccolini, I., Brammer, S., Linnenluecke, M., & Demirag, I. (2021). Accounting, management and accountability in times of crisis: lessons from the COVID-19 pandemic. Accounting, Auditing and Accountability Journal, 34(6), 1305–1319. https://doi.org/10.1108/AAAJ-05-2021-5279
  15. Mazur, N., Khrystenko, L., Pásztorová, J., Zos-Kior, M., Hnatenko, I., Puzyrova, P., & Rubezhanska, V. (2021). Improvement of Controlling in the Financial Management of Enterprises. TEM Journal, 10(4), 1605–1609. https://doi.org/10.18421/TEM104-15
  16. McVay, S., & Szerwo, B. (2021). Preparers and the financial reporting system. Accounting and Business Research, 51(5), 484–507. https://doi.org/10.1080/00014788.2021.1932257
  17. Mishchenko, S., Naumenkova, S., Mishchenko, V., & Dorofeiev, D. (2021). Innovation risk management in financial institutions. Investment Management and Financial Innovations, 18(1), 191–203. https://doi.org/10.21511/imfi.18(1).2021.16
  18. Mubushar, M., Rasool, S., Haider, M. I., & Cerchione, R. (2021). The impact of corporate social responsibility activities on stakeholders’ value co-creation behaviour. Corporate Social Responsibility and Environmental Management, 28(6), 1906–1920. https://doi.org/10.1002/csr.2168
  19. Purwantini, H. (2017). Research in Business and Social Science Minimizing Tax Avoidance by Using Conservatism Accounting Through Book Tax Differences ( Case Study in Indonesia ). Research in Business and Social Science, 6(5), 55–67. https://doi.org/http://dx.doi.org/10.20525/ijrbs.v6i5.765 Minimizing
  20. Ramos, D., Fonseca, L., Gonçalves, J., Carvalho, R., Carvalho, S., & Santos, G. (2022). Cost-Benefit Analysis of Implementing Circular Economy in a Portuguese Company: From a Case Study to a Model. Quality Innovation Prosperity, 26(1), 52–69. https://doi.org/10.12776/QIP.V26I1.1657
  21. Sari, D. P., & Purwaningsih, A. (2016). Pengaruh Book Tax Differences Terhadap Manajemen Laba. Modus, 26(2), 121. https://doi.org/10.24002/modus.v26i2.583
  22. Sugiyono. (2017). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. ALFABETA, cv.
  23. Sugiyono. (2018). Metodologi Penelitian Kuantitatif (S. Y. Suryandari, Ed.). ALFABETA, cv.
  24. Sulistyowati, S., & Hendrawati, H. (2020). The Effect of Tax Differences Book on Income Growth. Advances in Economics, Business and Management Research, 127(Aicar 2019), 169–173.
  25. Talha, M., Wang, F., Maia, D., & Marra, G. (2022). Impact of information technology on accounting and finance in the digital health sector. Journal of Commercial Biotechnology, 27(2), 184–195. https://doi.org/10.5912/jcb1299
  26. Wahab, N. S. A., & Holland, K. (2014). The Persistence of Book-Tax Differences. The British Accounting Review, 47(4). https://doi.org/10.1016/j.bar.2014.06.002
  27. Waluyo. (2019). Akuntansi Pajak (6th ed.). Salemba Empat.
  28. Windarti, E. R., & Sulistiani, D. (2015). Book tax differences. 6(1), 111–125.
  29. Xie, B., Lin, B., & Li, M. (2021). Research on financial support mechanism of creative enterprises. Journal of Global Information Management, 30(3). https://doi.org/10.4018/JGIM.20220701.oa6