企业纳税筹划外文文献翻译.docx

1、企业纳税筹划外文文献翻译文献出处：MUCAI G P, KINYA G S, NOOR A I, et al. Tax Planning and Financial Performance of Small Scale Enterprises in KenyaJ.2014：3：1236-1243.原文Tax Planning and Financial Performance of Small Scale Enterprises in KenyaMUCAI G P, KINYA G S, NOOR A IAbstract In order to ensure the efficiency an

2、d effectiveness of activities, reliability and compliance with applicable laws, small scale enterprises need to have adequate tax controls. The study sought to find out the extent to which expenditure on capital assets in tax planning, to determine how tax planning by Capital Structure influence per

3、formance of small enterprises, find out how tax planning through Advertisement expenditure influence performance of small enterprises and to assess how tax planning through Legal Forms of enterprise influence performance of small enterprises in Embu CBD. The study had a total population of one hundr

4、ed and forty nine respondents and a sample of 30 percent was drawn from each stratum. The data was then presented in form of Percentages and Tables. The study found the influence of tax planning by capital structure, tax planning in investment, capital asset planning through advertisement expenditur

5、e and found that the Legal Forms of small enterprises in Embu CBD has no significant relationship. The study recommends that small scale enterprises should be ready to seek advice on tax planning. Further to this, the study recommends that there is need to have NGOs to sensitize the respondents as t

6、o the need to do formal tax planning as it could increase their Business profitability. Key Words: Tax Avoidance, Tax Evasion, Tax Planning, Capital Structure. Introduction The concept of taxation has been a concern of global significance as it affects every economy irrespective of national differen

7、ces (Oboh et al., 2012). Within the context of Africa, tax, a concept as old as mankind can be described as an amount, effort, contribution or service rendered either in kind (goat, cow, farm produce, clearing of grass etc.) or monetary value contributed into a common purse for the running of the so

8、ciety. According to Omotoso (2001), in his definition of the modern taxes, defined tax as a compulsory charge imposed by a public authority on the income of individuals and companies as stipulated by the government decrees, acts or case laws irrespective of the exact amount of services rendered to t

9、he payer in return. Thus, taxes constitute the principal source of government revenue and the beauty of any government is for its citizen to voluntarily execute their tax obligations without much coercion and harassment (Adedeji and Oboh, 2012). Tax evasion and fiscal corruption have been a general

10、and persistent problem throughout history with serious economic consequences, not only in transition economies, but also in countries with developed tax systems (Raza, 2011). In general, tax evasion and corruption can have ambiguous effects on Economic growth: tax evasion increases the amount of res

11、ources accumulated by entrepreneurs, but it also reduces the amount of public services supplied by the government, thus leading to negative Consequences for economic growth (Roy and Raffaella, 2011). Previous studies highlight reports of declining effective tax rates and a rising proportion of firms

12、 that report little or no tax liability. To date, the maintained assumption in much of the literature is that aggressive tax behavior, rather than economic trends, is the driving factor behind this decline (Desai and Dharmapala 2009). The Kenya Revenue Authority (K.R.A) is the tax collection agency

13、of Kenya. It was formed July 1, 1995 to enhance tax collection on behalf of the Government of Kenya. It collects a number of taxes and duties, including: value added tax, income tax and customs. Since KRAs inception, revenue collection has increased dramatically, enabling the government to provide m

14、uch needed services to its citizenry like free primary education and Health Services to all. Over 90% of annual national budget funding comes from local taxes collected by the KRA (GOK, 2010). It is however important to establish whether the observed increased revenue collection effectiveness has re

15、sulted from aggressive tax management by Kenya Revenue Authority (KRA) or whether it is, in part, due to increased use of the new economy business model. This is important because the sources of tax avoidance have distinct policy implications. The policy response to tax avoidance arising from aggres

16、sive tax schemes and investments in tax planning is likely to be very different from the response to tax avoidance stemming from a shift in many firms organizational, operating, and financing attributes, which enable them to exploit their operating flexibility to naturally align with tax incentives

17、that generate tax savings (Drucker 2006). The decreasing trend in effective tax rates may not be solely due to aggressive tax management but Rather, firms modifications to their business models resulting from changing economic trends potentially enabling them to reduce tax burdens without additional

18、 investments in tax planning (Blouin, and Larcker 2011). Performance of Small Enterprises Different approaches are used performance evaluation in which goal approach, time frame approach, balanced scorecard , system approach, and ineffectiveness approach are included (Jean-Francois, 2004). In stakeh

19、older approach, centre of attention is the ability of a business to meet the needs and expectations of its stakeholders (Daft, 1995).Competing values approach expands the range of other approaches. By using competing values approach, four other models are developed in which rational goal; internal p

20、rocess, open system and human relations are included (Quinn and Rohrbaugh, 1983). Performance of an organization can be evaluated by focusing on problems and retarding factors that inhibit the performance of organizations (Camaron, 1984). Out of the above mentioned approaches, goal approach is the s

21、uperlative approach to evaluate the performance due to its straightforwardness (Pfeffer and Salancik 1978). Most trendy approach of performance evaluation of SMEs is balanced scorecard approach. Balanced scorecard has four dimensions in which financial growth, quality, customers and learning growth

22、is built-in (Kaplan and Norton, 1992).Balance scorecard actually focuses on maintaining symmetry between monetary and non monetary measures (Neely et al. 1996). Book-tax differences, on average, are systematically related to earnings growth, future stock returns, and earnings persistence (Hanlon, 20

23、05) and among other implications, book-tax differences are useful measures in evaluating firm performance. Consistent with these studies, Shevlin (2002) and Hanlon, Laplante, and Shevlin (2005) find that while book income explains a firms annual stock returns better than estimated taxable income, es

24、timated taxable income, on average, has incremental explanatory power for book income. However , there is little evidence regarding taxable income as an alternative performance measure and, in particular, cross-sectional differences in firms that mitigates or enhances the ability of taxable income t

25、o inform investors regarding firm performance (Lev and Nissim, 2004). Some SMEs compare their performance with that of other SMEs. They evaluate their performance by means of comparative analysis. Performance can also be evaluated by means of ineffectiveness approach. In ineffectiveness approach, fo

26、cus is on the factors that hampers the feat of organizations. Therefore this study seeks to investigate the extent to which Tax Planning influences Financial Performance of Small Enterprises in Embu town CBD Tax Planning The implementation situation of SME income tax planning is distorted tax planni

27、ng, that is to say, on the one hand, more and more SME pay tax in accordance with the law, and on the other hand, because of the role of the interest mechanism and other various reasons, more and more SME tax-related cases appear (Karing and Wanjala, 2005). According to the survey, the vast majoriti

28、es SME have not yet started or are considering carrying out tax planning, which can not fight for the legitimate tax interests and ruin financial interests leading to a large number of emerging additional tax burden (Fjeldstad and Rakne, 2003). In addition, SME tax planning is treated unreasonable.

29、Due to the limitations of the concept, SME tax planning activities often encounter misunderstanding, punishment and censor from some basic taxation law enforcement agencies (Karing and Wanjala, 2005). Tax law is said to be barely connected with the universe and with universal law as we understand it

30、. However, tax law is founded not only on principles but also on practicality. There is no element of perpetuity about tax law, only the constant clash of the immediate and semi permanent (Kibua and Nziok, 2004). A State cannot run a democracy well without taxation and a taxation system cannot be ru

31、n well without democracy. Oliver Wendell Holmes has said on one occasion, Taxes are what we pay for civilized society (Neely et al. 1996). Statement of the Problem Tax reform today has been moving towards considering new legislation, such as whole new taxes or reliefs, rather than patching of existi

32、ng taxes by either increasing or decreasing the amount of taxation. This breaks down into the fact that there are ongoing considerations of widening the tax base. Kenya is no exception to this and there are ongoing considerations into taxing the informal or jua kali sector including the taxation of

33、the mitumba, the second hand clothing industry as well as the taxation of all informal tax payers of small amounts. A question that appears to generate surprisingly little debate in Kenya is the scope for legally mitigating taxes payable by individuals and corporate entities. Tax planning is bound to gain increasing significance with t