Alfred V H Tran

Problems of accounting reform in the People's Republic of China

Abstract The promulgation of the Enterprise Accounting Standard (EAS) in 1992 signified a major accomplishment in unifying accounting practices in the Peoples Republic of China (PRC) and harmonizing them with international practices. This article identifies and analyzes the problems encountered in the PRC since the implementation of the EAS in July 1993. These problems result from the accounting regulatory framework itself and the incongruity betweem the new accounting regulations and the prevailing socioeconomic conditions. Some possible solutions are discussed.

A survey of tax evasion using the randomized response technique

We conducted a mail questionnaire survey using both the randomized response (RR) technique and the direct questioning (DQ) technique to directly estimate the prevalence and type of income tax evasion. We also assessed the effectiveness of the RR technique in reducing response and non-response biases and examined the relationship between tax evasion and key demographic variables.Of the respondents completing the RR survey instrument, 5.5% admitted tax evasion by under-reporting income, and 6.5% admitted tax evasion by over-claiming deductions. The corresponding proportions obtained from the DQ survey instrument were 1.7% and 4.2% respectively. The RR technique was ineffective in reducing non-response bias, but the estimated proportions of tax evasion obtained by the RR technique are higher than those obtained by the DQ technique. A relationship was found between the demographic variables examined and tax evasion. However, interpretation of the results was restricted by the lack of statistical significance of the differences.

Relationship of tax and financial accounting rules in Anglo-Saxon countries

Abstract In this paper, we examine the relationship of tax rules and financial accounting rules in Anglo-Saxon countries. In particular, we review the historical developments of the book-tax relationship in three Anglo-Saxon countries: the United States, the United Kingdom, and Australia. We identify the major sources of divergence between the two sets of rules in these countries, and briefly discuss the implications of an alignment of tax with financial accounting rules.