Empirical Study on Accounting and Tax Differences in the Case of an Economic Entity
Empirical Study on Accounting and Tax Differences in the Case of an Economic Entity

Summary/Abstract: Often enough, the definitions in tax regulations are not unique, and they can differ even within the fiscal legislation from one title to another. Thus the accounting regulations define the net turnover tax code, but at the same time it brings different definitions of turnover in terms of added value. The turnover for professionals in accounting is an indicator used to represent the value and the synthetic of the achieved sales by an economic unit during a certain period or a business segment. Also the fiscal elements come to generate a new identity of the taxable result, totally different from the accounting result. There are found clear value differences between accounting and tax perspective on the outcome in terms of operating profit and expenses. These differences at the level of operating costs continue to affect key indicators of the structure of the profit account and loss until determining the gross profit, which differs in the accounting vision compared to the gross profit in the fiscal vision.

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