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Asian Journal of Research in Business Economics and Management
Year : 2014, Volume : 4, Issue : 4
First page : ( 192) Last page : ( 201)
Online ISSN : 2249-7307.

The Impact of Accountants’ Ethical Decision Making on the Accuracy of Tax Expression of Companies Listed in Tehran Stock Exchange

Taghipouryan Yousef1, Asri Jafar2

1Dept. of Accounting, chalous Branch, Islamic Azad University, Chalous, Iran

2Dept. of Accounting, Ayatollah Amole Science and Research Branch, Islamic Azad University, Amole, Iran

Online published on 15 April, 2014.

Abstract

The objective of this study is to evaluate the impact of accountants’ ethical decision making on accuracy of tax expression of companies listed in Tehran Stock Exchange. In this study, items related to the tax expression are collected using tax records of companies that have been archived in Organization of Large Taxpayers for one year (2010), and then accountants’ ethical decision-making is measured using 146 questionnaires for 50 companies. Data processing and analysis is done using structural equation model. The findings show that as the amount of ethical decisions increase, the accuracy of tax expression is also increased. However, with increasing the size of company, the relation between ethics and accuracy of tax expression is decreased. Accordingly, and with reference to the political cost theory (in our discussion, taxes), it is concluded that in larger companies, the company's accountant select some approaches for determining the amount of taxable income and consequently the tax expression to change the items affecting the earnings of the economic unit in which the ethical and human values are ignored. Accordingly, it is recommended to audit and tax auditors to pay special attention to the size of the mentioned companies while examining the accounts of these companies.

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Keywords

Ethical Decision Making, Tax Expression, Final Tax.

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