Effects of digital economy involvement on book-tax differences in Malaysia

Malaysian government provides tax incentives to firms that involve in digital economy to increase digital economy activities in the country. This, however, can enlarge the country’s tax gap. This study, therefore, attempts to investigate the effects of firms’ digital economy involvement on book-tax...

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Autores principales:	Nor Shaipah Abdul Wahab, Tye Wei Ling, Adamu Pantamee Abdurrahman, Ooi Chee Keong, Nik Herda Nik Abdullah
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2021
Materias:	book-tax differences digital economy permanent differences temporary differences statutory tax rates differences malaysia Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/d80bdc82e9a34decab605e6b9a0f6871
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id	oai:doaj.org-article:d80bdc82e9a34decab605e6b9a0f6871
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spelling	oai:doaj.org-article:d80bdc82e9a34decab605e6b9a0f68712021-12-02T11:51:14ZEffects of digital economy involvement on book-tax differences in Malaysia2331-197510.1080/23311975.2020.1870806https://doaj.org/article/d80bdc82e9a34decab605e6b9a0f68712021-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2020.1870806https://doaj.org/toc/2331-1975Malaysian government provides tax incentives to firms that involve in digital economy to increase digital economy activities in the country. This, however, can enlarge the country’s tax gap. This study, therefore, attempts to investigate the effects of firms’ digital economy involvement on book-tax differences (BTD), and its components, comprising permanent, temporary and statutory tax rates differences. A total of 846 firm-year data of Malaysian-listed firms from 2013 to 2018 were analysed. The relationships between digital economy involvement and temporary differences, and statutory tax rates differences were found positive and significant. This suggests that firms, through temporary differences, are leveraging on the usage of ICT to enjoy the incentives provided by the Government. The firms are also benefiting from cross-border businesses to secure tax benefits from differences of tax rules between jurisdictions. This study contributes to literature by providing further empirical evidence to support theory of tax incentives within the context of technology acceptance model. This study also contributes to the authority by providing insights on the extent the digital economy-related incentives can affect the country’s tax gap. Firms can also be benefited from this study in their attempts to gauge the effects of digital economy activities on their tax position.Nor Shaipah Abdul WahabTye Wei LingAdamu Pantamee AbdurrahmanOoi Chee KeongNik Herda Nik AbdullahTaylor & Francis Grouparticlebook-tax differencesdigital economypermanent differencestemporary differencesstatutory tax rates differencesmalaysiaBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 8, Iss 1 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	book-tax differences digital economy permanent differences temporary differences statutory tax rates differences malaysia Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	book-tax differences digital economy permanent differences temporary differences statutory tax rates differences malaysia Business HF5001-6182 Management. Industrial management HD28-70 Nor Shaipah Abdul Wahab Tye Wei Ling Adamu Pantamee Abdurrahman Ooi Chee Keong Nik Herda Nik Abdullah Effects of digital economy involvement on book-tax differences in Malaysia
description	Malaysian government provides tax incentives to firms that involve in digital economy to increase digital economy activities in the country. This, however, can enlarge the country’s tax gap. This study, therefore, attempts to investigate the effects of firms’ digital economy involvement on book-tax differences (BTD), and its components, comprising permanent, temporary and statutory tax rates differences. A total of 846 firm-year data of Malaysian-listed firms from 2013 to 2018 were analysed. The relationships between digital economy involvement and temporary differences, and statutory tax rates differences were found positive and significant. This suggests that firms, through temporary differences, are leveraging on the usage of ICT to enjoy the incentives provided by the Government. The firms are also benefiting from cross-border businesses to secure tax benefits from differences of tax rules between jurisdictions. This study contributes to literature by providing further empirical evidence to support theory of tax incentives within the context of technology acceptance model. This study also contributes to the authority by providing insights on the extent the digital economy-related incentives can affect the country’s tax gap. Firms can also be benefited from this study in their attempts to gauge the effects of digital economy activities on their tax position.
format	article
author	Nor Shaipah Abdul Wahab Tye Wei Ling Adamu Pantamee Abdurrahman Ooi Chee Keong Nik Herda Nik Abdullah
author_facet	Nor Shaipah Abdul Wahab Tye Wei Ling Adamu Pantamee Abdurrahman Ooi Chee Keong Nik Herda Nik Abdullah
author_sort	Nor Shaipah Abdul Wahab
title	Effects of digital economy involvement on book-tax differences in Malaysia
title_short	Effects of digital economy involvement on book-tax differences in Malaysia
title_full	Effects of digital economy involvement on book-tax differences in Malaysia
title_fullStr	Effects of digital economy involvement on book-tax differences in Malaysia
title_full_unstemmed	Effects of digital economy involvement on book-tax differences in Malaysia
title_sort	effects of digital economy involvement on book-tax differences in malaysia
publisher	Taylor & Francis Group
publishDate	2021
url	https://doaj.org/article/d80bdc82e9a34decab605e6b9a0f6871
work_keys_str_mv	AT norshaipahabdulwahab effectsofdigitaleconomyinvolvementonbooktaxdifferencesinmalaysia AT tyeweiling effectsofdigitaleconomyinvolvementonbooktaxdifferencesinmalaysia AT adamupantameeabdurrahman effectsofdigitaleconomyinvolvementonbooktaxdifferencesinmalaysia AT ooicheekeong effectsofdigitaleconomyinvolvementonbooktaxdifferencesinmalaysia AT nikherdanikabdullah effectsofdigitaleconomyinvolvementonbooktaxdifferencesinmalaysia
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Effects of digital economy involvement on book-tax differences in Malaysia

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