Published on 01 Sep 08
by "AUSTRALIAN TAX FORUM" JOURNAL ARTICLE
This study examines the effective tax rates of listed companies in Australia for a period of 11 years from 1994 to 2004. Two measures of effective tax rate are used: total tax expense divided by pre-tax accounting profit (ETR), and current tax expense divided by pre-tax accounting profit (ETR’). The difference between ETR and the statutory tax rate (STR) provides a measure of permanent differences. The difference between ETR’ and ETR provides a measure of timing differences. Thus, this study also examines the book-tax income gap. The findings are summarised as follows. First, using the General Industry Classification Scheme (GICS), an industry effect is identified. Three industry groups consistently have ETR and ETR’ significantly different from the default industry group in the regression models. Also, using accounting profit as a proxy for firm size, a size effect is identified. The top 20 firms appear to have the lowest ETR, while medium firms appear to have the highest ETR’.
Yi Heng YU
Mr Yi Heng (Raymond) Yu completed a Bachelor of Commerce degree with Honours from the Australian National University. Current at September 2008
Dr Alfred Tran CTA
Alfred works at the Research School of Accounting, The Australian National University. Current at 01 April 2016
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