Tax Planning And Tax Avoidance Essay Example | Topics and Well Written Essays - 2500 words

appraise Planning And Tax Avoidance - Essay ExampleTaxation is a major tool to take the frugals in the certain direction. Young and Guenther studied the relationship in the context of the mobility of capital in international level and Sun studied the efficiency of capital allocation. However, all these require that the financial inform to be reliable, accurate, transparent, comparable and true representative of business conditions. International Financial Reporting Standards is mandated to be adoptive as the financial reporting system in the EU countries for the listing companies. Barth, Landsman, & Lang and former(a)s have reported an feeler in the explanation information with the adoption of IFRS. Samuel, & Obiamaka in a paper stated that IFRS system of accounting as the base for appraise will drive the tax accounting to generate the real economic value of the company. This provides greater prospect to explore the real taxable income for the company. Use of IFRS increases t he chances of them being listed in other countries. Use of the comparable system of IFRS across the broad would reduce the chances of measures taken by the company for tax avoidance to be overlooked. Another argument in favor of the adoption of IFRS states that it would result in the change magnitude involvement of audit committee in addition to the other level of management. This will increase the icon check facility for the audit committee as companies will not be available with an opportunity to avoid tax by claiming that reporting of a transaction is in accordance with the rules.