企业纳税筹划外文文献翻译.docx

企业纳税筹划外文文献翻译.docx

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企业纳税筹划外文文献翻译

文献出处：

MUCAIGP,KINYAGS,NOORAI,etal.TaxPlanningandFinancialPerformanceofSmallScaleEnterprisesinKenya[J].2014：

3：

1236-1243.

原文

TaxPlanningandFinancialPerformanceofSmallScaleEnterprisesinKenya

MUCAIGP,KINYAGS,NOORAI

Abstract

Inordertoensuretheefficiencyandeffectivenessofactivities,reliabilityandcompliancewithapplicablelaws,smallscaleenterprisesneedtohaveadequatetaxcontrols.Thestudysoughttofindouttheextenttowhichexpenditureoncapitalassetsintaxplanning,todeterminehowtaxplanningbyCapitalStructureinfluenceperformanceofsmallenterprises,findouthowtaxplanningthroughAdvertisementexpenditureinfluenceperformanceofsmallenterprisesandtoassesshowtaxplanningthroughLegalFormsofenterpriseinfluenceperformanceofsmallenterprisesinEmbuCBD.Thestudyhadatotalpopulationofonehundredandfortyninerespondentsandasampleof30percentwasdrawnfromeachstratum.ThedatawasthenpresentedinformofPercentagesandTables.Thestudyfoundtheinfluenceoftaxplanningbycapitalstructure,taxplanningininvestment,capitalassetplanningthroughadvertisementexpenditureandfoundthattheLegalFormsofsmallenterprisesinEmbuCBDhasnosignificantrelationship.Thestudyrecommendsthatsmallscaleenterprisesshouldbereadytoseekadviceontaxplanning.Furthertothis,thestudyrecommendsthatthereisneedtohaveNGOstosensitizetherespondentsastotheneedtodoformaltaxplanningasitcouldincreasetheirBusinessprofitability.

KeyWords:

TaxAvoidance,TaxEvasion,TaxPlanning,CapitalStructure.

Introduction

Theconceptoftaxationhasbeenaconcernofglobalsignificanceasitaffectseveryeconomyirrespectiveofnationaldifferences（Obohetal.,2012）.WithinthecontextofAfrica,tax,aconceptasoldasmankindcanbedescribedasanamount,effort,contributionorservicerenderedeitherinkind（goat,cow,farmproduce,clearingofgrassetc.）ormonetaryvaluecontributedintoacommonpursefortherunningofthesociety.AccordingtoOmotoso（2001）,inhisdefinitionofthemoderntaxes,definedtaxasacompulsorychargeimposedbyapublicauthorityontheincomeofindividualsandcompaniesasstipulatedbythegovernmentdecrees,actsorcaselawsirrespectiveoftheexactamountofservicesrenderedtothepayerinreturn.Thus,taxesconstitutetheprincipalsourceofgovernmentrevenueandthebeautyofanygovernmentisforitscitizentovoluntarilyexecutetheirtaxobligationswithoutmuchcoercionandharassment（AdedejiandOboh,2012）.

Taxevasionandfiscalcorruptionhavebeenageneralandpersistentproblemthroughouthistorywithseriouseconomicconsequences,notonlyintransitioneconomies,butalsoincountrieswithdevelopedtaxsystems（Raza,2011）.Ingeneral,taxevasionandcorruptioncanhaveambiguouseffectsonEconomicgrowth:

taxevasionincreasestheamountofresourcesaccumulatedbyentrepreneurs,butitalsoreducestheamountofpublicservicessuppliedbythegovernment,thusleadingtonegativeConsequencesforeconomicgrowth（RoyandRaffaella,2011）.Previousstudieshighlightreportsofdecliningeffectivetaxratesandarisingproportionoffirmsthatreportlittleornotaxliability.Todate,themaintainedassumptioninmuchoftheliteratureisthataggressivetaxbehavior,ratherthaneconomictrends,isthedrivingfactorbehindthisdecline（DesaiandDharmapala2009）.

TheKenyaRevenueAuthority（K.R.A）isthetaxcollectionagencyofKenya.ItwasformedJuly1,1995toenhancetaxcollectiononbehalfoftheGovernmentofKenya.Itcollectsanumberoftaxesandduties,including:

valueaddedtax,incometaxandcustoms.SinceKRA'sinception,revenuecollectionhasincreaseddramatically,enablingthegovernmenttoprovidemuchneededservicestoitscitizenrylikefreeprimaryeducationandHealthServicestoall.Over90%ofannualnationalbudgetfundingcomesfromlocaltaxescollectedbytheKRA（GOK,2010）.

ItishoweverimportanttoestablishwhethertheobservedincreasedrevenuecollectioneffectivenesshasresultedfromaggressivetaxmanagementbyKenyaRevenueAuthority（KRA）orwhetheritis,inpart,duetoincreaseduseoftheneweconomybusinessmodel.Thisisimportantbecausethesourcesoftaxavoidancehavedistinctpolicyimplications.Thepolicyresponsetotaxavoidancearisingfromaggressivetaxschemesandinvestmentsintaxplanningislikelytobeverydifferentfromtheresponsetotaxavoidancestemmingfromashiftinmanyfirms'organizational,operating,andfinancingattributes,whichenablethemtoexploittheiroperatingflexibilitytonaturallyalignwithtaxincentivesthatgeneratetaxsavings（Drucker2006）.

ThedecreasingtrendineffectivetaxratesmaynotbesolelyduetoaggressivetaxmanagementbutRather,firms'modificationstotheirbusinessmodelsresultingfromchangingeconomictrendspotentiallyenablingthemtoreducetaxburdenswithoutadditionalinvestmentsintaxplanning（Blouin,andLarcker2011）.

PerformanceofSmallEnterprises

Differentapproachesareusedperformanceevaluationinwhichgoalapproach,timeframeapproach,balancedscorecard,systemapproach,andineffectivenessapproachareincluded（Jean-Francois,2004）.Instakeholderapproach,centreofattentionistheabilityofabusinesstomeettheneedsandexpectationsofitsstakeholders（Daft,1995）.Competingvaluesapproachexpandstherangeofotherapproaches.

Byusingcompetingvaluesapproach,fourothermodelsaredevelopedinwhichrationalgoal;internalprocess,opensystemandhumanrelationsareincluded（QuinnandRohrbaugh,1983）.Performanceofanorganizationcanbeevaluatedbyfocusingonproblemsandretardingfactorsthatinhibittheperformanceoforganizations（Camaron,1984）.Outoftheabovementionedapproaches,goalapproachisthesuperlativeapproachtoevaluatetheperformanceduetoitsstraightforwardness（PfefferandSalancik1978）.MosttrendyapproachofperformanceevaluationofSME'sisbalancedscorecardapproach.Balancedscorecardhasfourdimensionsinwhichfinancialgrowth,quality,customersandlearninggrowthisbuilt-in（KaplanandNorton,1992）.Balancescorecardactuallyfocusesonmaintainingsymmetrybetweenmonetaryandnonmonetarymeasures（Neelyetal.1996）.

Book-taxdifferences,onaverage,aresystematicallyrelatedtoearningsgrowth,futurestockreturns,andearningspersistence（Hanlon,2005）andamongotherimplications,book-taxdifferencesareusefulmeasuresinevaluatingfirmperformance.Consistentwiththesestudies,Shevlin（2002）andHanlon,Laplante,andShevlin（2005）findthatwhilebookincomeexplainsafirm'sannualstockreturnsbetterthanestimatedtaxableincome,estimatedtaxableincome,onaverage,hasincrementalexplanatorypowerforbookincome.However,thereislittleevidenceregardingtaxableincomeasanalternativeperformancemeasureand,inparticular,cross-sectionaldifferencesinfirmsthatmitigatesorenhancestheabilityoftaxableincometoinforminvestorsregardingfirmperformance（LevandNissim,2004）.

SomeSME'scomparetheirperformancewiththatofotherSME's.Theyevaluatetheirperformancebymeansofcomparativeanalysis.Performancecanalsobeevaluatedbymeansofineffectivenessapproach.Inineffectivenessapproach,focusisonthefactorsthathampersthefeatoforganizations.ThereforethisstudyseekstoinvestigatetheextenttowhichTaxPlanninginfluencesFinancialPerformanceofSmallEnterprisesinEmbutownCBD

TaxPlanning

TheimplementationsituationofSMEincometaxplanningisdistortedtaxplanning,thatistosay,ontheonehand,moreandmoreSMEpaytaxinaccordancewiththelaw,andontheotherhand,becauseoftheroleoftheinterestmechanismandothervariousreasons,moreandmoreSMEtax-relatedcasesappear（KaringandWanjala,2005）.Accordingtothesurvey,thevastmajoritiesSMEhavenotyetstartedorareconsideringcarryingouttaxplanning,whichcannotfightforthelegitimatetaxinterestsandruinfinancialinterestsleadingtoalargenumberofemergingadditionaltaxburden（FjeldstadandRakne,2003）.Inaddition,SMEtaxplanningistreatedunreasonable.Duetothelimitationsoftheconcept,SMEtaxplanningactivitiesoftenencountermisunderstanding,punishmentandcensorfromsomebasictaxationlawenforcementagencies（KaringandWanjala,2005）.

Taxlawissaidtobebarelyconnectedwiththeuniverseandwithuniversallawasweunderstandit.However,taxlawisfoundednotonlyonprinciplesbutalsoonpracticality.Thereisnoelementofperpetuityabouttaxlaw,onlytheconstantclashoftheimmediateandsemipermanent（KibuaandNziok,2004）.AStatecannotrunademocracywellwithouttaxationandataxationsystemcannotberunwellwithoutdemocracy.OliverWendellHolmeshassaidononeoccasion,"Taxesarewhatwepayforcivilizedsociety"（Neelyetal.1996）.

StatementoftheProblem

Taxreformtodayhasbeenmovingtowardsconsideringnewlegislation,suchaswholenewtaxesorreliefs,ratherthanpatchingofexistingtaxesbyeitherincreasingordecreasingtheamountoftaxation.Thisbreaksdownintothefactthatthereareongoingconsiderationsofwideningthetaxbase.Kenyaisnoexceptiontothisandthereareongoingconsiderationsintotaxingtheinformalor"juakali'sectorincludingthetaxationofthe"mitumba',thesecondhandclothingindustryaswellasthetaxationofallinformaltaxpayersofsmallamounts.

AquestionthatappearstogeneratesurprisinglylittledebateinKenyaisthescopeforlegallymitigatingtaxespayablebyindividualsandcorporateentities.Taxplanningisboundtogainincreasingsignificancewitht