Corporate income tax is a mandatory contribution that must be paid on the net income earned by a business entity or company, the corporate income tax rules affect the profit management strategy in the company, both for the short term and for the long term this rule encourages corporate profit management strategies that directly affect the Financial Statements, company valuation and investment decisions
the purpose of the company’s profit management is to maximize profit after Tax, avoid excessive tax payments while increasing the value perusahaam, banayk tenkin profit management that can be applied to achieve success diantarnya denan delay revenue recognition, by accelerating the recognition of truth, set the time ransaksi and the use of reserve funds, this way can adjust the taxable income in accordance
high corporate income tax policy Spurs companies to manage profits in a way that leads to manage profits in a way that allows minmalisir tax payments, on the one hand with the imposition of taxes that are too low also causes unrealistic financial statements terliyat imposition of burdens that are too high with little profit makes investors think twice to invest in the company’s shares because the company is indicated to be unable to manage assets. pengeolahana lapran keunungan unnatural make keunagn report information becomes unclear, which reduces the reliability and credibility of the company, if the company focuses only on tax minmalisir will make keunagn report becomes not transparent ang can harm investors or other stakeholders in this case the auditor memlilki role to mangkaji and complain if the processing of profits is not ethical
companies that are not transparent in the management of disenganja profits can cause serious legal repercussions including fines, criminal sanctions and also damage to the company’s reuation, therefore it is important for companies to manage profits in reasonable numbers following the applicable taxation provisions, structuring profits in a reasonable way provides many benefits, such as ensuring accurate financial reporting improves investor confidence and minimizes legal
the current development direction of tax processing leads to a shift to more sophisticated techniques to use big data to plan taxes more efficiently, on the one hand, stakeholders must also study the rules to prevent processing of money less wisely to maintain market stability and ensure that companies pay taxes as smoothly as possible, if companies process profits into unnatural numbers will reduce tax revenues that should be obtained by the state to create stability, it is important for pengusahans to comply with tax regulations responsibly in order to maintain the country’s economy.
But the government must also berinfrospecsi themselves how to make companies want to with their awareness without coercion, gladly pay taxes because taxes can advance the wheels of the economy. the problem of corruption cases of tax evasion by a handful of legal persons who tend to be blunt upward and pointed downward, making entrepreneurs and the general public doubt “why should I pay taxes, if the taxes I pay are misused by a handful of people
The board of Directors has the authority to supervise alaba processing and ensure that the company submits proposals, and complies with existing regulations and avoids misleading profit processing practices, on the one hand to facilitate profit processing, the Board of Directors can provide options with technological advances to make automation and data analysis that allows more efficient and accurate profit processing while increasing transparency