 Tax planning and payment timingSoufiene Assidi and Mohamed Ali Brahim Omri Afro-Asian Journal of Finance and Accounting, 2017, vol. 7, issue 2, 164-176 Abstract: The purpose of this paper is to find out about the arbitration between the payment of tax due and the reinvestment of this amount and to look for the timing in which the reinvestment of tax due is more profitable than tax payment. This research is made in connection between accounting and taxation context and tax system feature. To answer to our question we use the vector auto regression (VAR) method, which will enable us to analyse the response functions that determine the time at which the profitability of the investment duties to pay will become higher than the penalties. We use a sample of 37 firms listed over 11 years (2000 to 2010). The result shows that managers are not interested to make tax payments within two years because the return of reinvestments will be negative because of the impact of penalties incurred by the legal system and the importance of tax revenues in the economy and the short-term exploitation. This study can also be the object of replications in other contexts. The findings of this paper contribute to the sparse literature on tax management and could be improved by tax optimisation considerations. Keywords: tax planning; tax timing; penalty; reinvestment tax. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:afasfa:v:7:y:2017:i:2:p:164-176 Access Statistics for this article More articles in Afro-Asian Journal of Finance and Accounting from Inderscience Enterprises Ltd |
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