About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

13 Austl. Tax F. 507 (1997)
The Gap between Accounting Profit and Taxable Income

handle is hein.journals/austraxrum13 and id is 513 raw text is: The Gap between
Accounting Profit and
Taxable Income
Alfred V. Tran*
This paper reports a statistical analysis of the effective tax rates
(ETRs) of more than 500 listed Australian companies to mea-
sure thegap between accounting profit and taxable income caused
by permanent differences. The results show that companies in
three industry groupings benefited substantially from concession-
al tax treatments ofgold-mining income, dividends and capital
gains, and had accounting profit consistently higher than taxable
income. After controlling for industry effect, the analyses also
identify a size effect: large firms had a wider book-tax income
gap than smallfirms.
* Department of Commerce, The Australian National University.
I have benefited fron the suggestions and comments of Allan Barton, Tin
Brailsford, Russell Craig, Ross Cunningham, Peter Jubb, Thomas Porcano, and Ian
Wallschutzky. The financial support of the Faculties Research Fund of The Austra-
lian National University is gratefully acknowledged.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing nearly 3,000 academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline with pricing starting as low as $29.95

Contact us for annual subscription options:

Already a HeinOnline Subscriber?

profiles profiles most