IFRS adoption and tax revenue performance in Africa: does Africa need tax-targeted IFRS reforms?

References

• Abedana, V. N., Omane-Antwi, K. B., & Owiredu, A. (2016). The impact of IFRS/IAS adoption on corporate income taxation in Ghana. International Journal of Accounting and Financial Reporting, 6(1), 72–21. https://doi.org/10.5296/ijafr.v6i1.9070
   Google Scholar
• Adegbite, T. A. (2020). The effects of IFRS adoption on taxation in Nigerian manufacturing companies. Financial Sciences, 25(4), 1–15. https://doi.org/10.15611/fins.2020.4.01
   Google Scholar
• Adeneye, Y., & Chu, E. Y. (2020). Managerial aversion and capital structure: Evidence from Southeast Asia. Asian Academy of Management Journal of Accounting and Finance, 16(1), 155–183. https://doi.org/10.21315/aamjaf2020.16.1.8
   Web of Science ®Google Scholar
• Agarwal, R. (2019) INSIGHT: Accounting for leases—tax implications [ Accesed on 02/05/2023 from:https://news.bloombergtax.com/daily-tax-report-international/insight-accounting-for-leases-tax-implications
   Google Scholar
• Agbeyegbe, T. (2004). Trade Liberalization, Exchange Rate Changes, and Tax Revenue in Sub-Saharan Africa Terence Agbeyegbe, Janet Stotsky b and Asegedech WoldeMariam b Department of Economics. Hunter College, City University of NY, NY b International Monetary Fund.
   Google Scholar
• Agyei, S. K., Marfo-Yiadom, E., Ansong, A., & Idun, A. A. A. (2019). Corporate tax avoidance incentives of banks in Ghana. Journal of African Business, 2019(4), 1–16. https://doi.org/10.1080/15228916.2019.1695183
   Google Scholar
• Akhand, Z., & Hubbard, M. (2016). Coercion, persuasion, and tax compliance: The case of large corporate taxpayers. Canadian Tax Journal, 64(1), 31–63.
   Google Scholar
• Akitoby, B., Honda, J., Primus, K., & Keen, M. (2020). Tax revenues in fragile and conflict-affected states—why are they low and how can we raise them? IMF Working Papers, 2020(143), 1. https://doi.org/10.5089/9781513550848.001
   Google Scholar
• Allingham, M. G., & Sandmo, A. (1972). Income tax evasion: A theoretical analysis. Journal of Public Economics, 1(3), 323–338. https://doi.org/10.1016/0047-2727(72)90010-2
   Google Scholar
• Birungi, J. M. (2015). The effect of selected macroeconomic variables on government revenues in Rwanda (Doctoral dissertation, University of Nairobi).
   Google Scholar
• Boateng, K., Omane-Antwi, K. B., & Queku, Y. N. (2022). Tax risk assessment, financial constraints and tax compliance: A bibliometric analysis. Cogent Business & Management, 9(1), 2150117. https://doi.org/10.1080/23311975.2022.2150117
   Web of Science ®Google Scholar
• Braga, R. N. (2017). Effects of IFRS adoption on tax avoidance. Revista Contabilidade and Finanças, 28(75), 407–424. https://doi.org/10.1590/1808-057x201704680
   Google Scholar
• Brains, C., Willnat, L., Manheim, J., & Rich, R. (2011). Empirical Political Analysis (8th ed.). Longman.
   Google Scholar
• Calderón, C., & Liu, L. (2003). The direction of causality between financial development and economic growth. Journal of Development Economics, 72(1), 321–334. https://doi.org/10.1016/S0304-3878(03)00079-8
   Web of Science ®Google Scholar
• Canada Revenue Agency, CAR. (2010). IFRS Bulletin 11. Obtained pursuant to the Access to Information Act (ATIA). Canadian Revenue Authority.
   Google Scholar
• Canada Revenue Agency, CAR. (2012). International Financial Reporting Standards (IFRS). Obtained online on May 13, 2012 from http://www.craarc.gc.ca/tx/bsnss/tpcs/frs/menu-eng.html
   Google Scholar
• Carsamer, E., Abbam, A., & Queku, Y. N. (2021). Bank capital, liquidity and risk in Ghana. Journal of Financial Regulation and Compliance. https://doi.org/10.1108/JFRC-12-2020-0117
   Web of Science ®Google Scholar
• Chen, E., & Gavious, I. (2015). The roles of book-tax conformity and tax enforcement in regulating tax reporting behaviour following international financial reporting standards adoption. Accounting and finance (early view; online first). Retrieved from https://doi.org/10.1111/acfi.12172.
   Google Scholar
• Christina, S. (2019). The effect of corporate tax planning on firm value. Accounting and Finance Review, 4(1), 01–04. https://doi.org/10.35609/afr.2019.4.1(1)
   Google Scholar
• Christopoulos, D. K., & Tsionas, E. G. (2004). Financial development and economic growth: Evidence from panel unit root and cointegration tests. Journal of Development Economics, 73(1), 55–74. https://doi.org/10.1016/j.jdeveco.2003.03.002
   Web of Science ®Google Scholar
• Clements, C. E., Neil, J. D., & Stovall, S. O. (2010). Cultural Diversity. Journal of Applied Business Research (JABR), 26(2). https://doi.org/10.19030/jabr.v26i2.288
   Google Scholar
• Daske, H., Hail, L., Leuz, C., & Verdi, R. (2008). Mandatory IFRS reporting around the world: Early evidence on the economic consequences. Journal of Accounting Research, 46(5), 1085–1142. https://doi.org/10.1111/j.1475-679X.2008.00306.x
   Web of Science ®Google Scholar
• Daske, H., Hail, L., Leuz, C., & Verdi, R. (2013). Adopting a label: Heterogeneity in the economic consequences around IAS/IFRS adoptions. Journal of Accounting Research, 51(3), 495–547.
   Web of Science ®Google Scholar
• Dawson, P. J. (2010). Financial development and economic growth: A panel approach. Applied Economics Letters, 17(8), 741–745. https://doi.org/10.1080/13504850802314411
   Web of Science ®Google Scholar
• Deloitte. (2010). CFO insights: IFRS: Select tax considerations. Retrieved from http://www.iasplus.com/en/binary/usa/1012cfotaxconsider.pdf.
   Google Scholar
• Deloitte. (2021) Cyprus Tax News [ Accessed on 02/05/2023 from https://www2.deloitte.com/content/dam/Deloitte/cy/Documents/tax/taxalerts/CY_TaxAlerts_28_05_21EN_Noexp.pdf]
   Google Scholar
• De Simone, L. (2016). Does a common set of accounting standards affect tax-motivated income shifting for multinational firms? Journal of Accounting & Economics, 61(1), 145–165. https://doi.org/10.1016/j.jacceco.2015.06.002
   Web of Science ®Google Scholar
• EFRAG. (2017) EFRAG’s letter to the european commission regarding endorsement of IFRIC Interpretation 23 Uncertainty over Income Tax Treatments https://www.efrag.org/Assets/Download?assetUrl=%2Fsites%2Fwebpublishing%2FProject%20Documents%2F364%2FEndorsement%20Advice%20on%20IFRIC%2023%20Uncertainty%20over%20Income%20Tax%20Treatments.pdf
   Google Scholar
• Egbunike, P. A., & Okoye, O. P. (2017). Tax implication of International Accounting Standards (IAS 12) adoption: Evidence from Deposit Money Banks (DMBS) in Nigeria. International Journal of Social and Administrative Sciences, 2(2), 52–62. https://doi.org/10.18488/journal.136.2017.22.52.62
   Google Scholar
• El-Helaly, M., Ntim, C. G., & Al-Gazzar, M. (2020). Diffusion theory, national corruption and IFRS adoption around the world. Journal of International Accounting, Auditing & Taxation, 38, 1–22. 100305. https://doi.org/10.1016/j.intaccaudtax.2020.100305
   Google Scholar
• Elster, J. (2001). Ulysses unbound. The Philosophical Quarterly, 51(205), 181–210.
   Web of Science ®Google Scholar
• Erickson, G. S. (2017). Causal research design. In New methods of market research and analysis (pp. 78–105). Edward Elgar Publishing.
   Google Scholar
• Ernst &Young (EY). (2021) Accounting for taxes considering the impact of IFRS 17 —What insurers need to know now
   Google Scholar
• Ernst &Y oung (EY). (2023) How OECD Pillar Two rules affect companies and their IFRS Reporting [ Accessed on 02/05/2023 from: https://www.ey.com/en_gl/ifrs/how-oecd-pillar-two-rules-affect-companies-and-their-ifrs-reporting]
   Google Scholar
• Eurostat. (2022): Taxation in 2021 [ Accessed from: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Tax_revenue_statistics&oldid=460966#:~:text=The%20ratio%20 of%202021%20tax,%2C%20Romania%2027.3%20%25%20of
   Google Scholar
• Eurostat European Commission. (2020): Taxation in 2019
   Google Scholar
• Farrar, J., & Thorne, L. (2016). Written communications and taxpayers’ compliance: An interactional fairness perspective. Canadian Tax Journal, 64(2), 351–370.
   Google Scholar
• Fiori, R. (2008). Fides e bona fides. Gerarchia sociale e categorie giuridiche.
   Google Scholar
• Gordon, L. A., Loeb, M. P., & Zhu, W. (2012). The impact of IFRS adoption on foreign direct investment. Journal of Accounting and Public Policy, 31(4), 374–398. https://doi.org/10.1016/j.jaccpubpol.2012.06.001
   Web of Science ®Google Scholar
• Gu, S., & Prah, G. J. (2019). The effect of international financial reporting standards on the association between foreign direct investment and economic growth: evidence from selected Countries in Africa. Journal of Accounting, Business and Finance Research, 8(1), 21–29. https://doi.org/10.20448/2002.81.21.29
   Google Scholar
• Hanlon, M., Hoopes, J. L., & Shroff, N. (2014). The effect of tax authority monitoring and enforcement on financial reporting quality. The Journal of the American Taxation Association, 36(2), 137–170. https://doi.org/10.2308/atax-50820
   Google Scholar
• He, G., Ren, H. M., & Taffler, R. (2020). The impact of corporate tax avoidance on analyst coverage and forecasts. Review of Quantitative Finance & Accounting, 54(2), 447–477. https://doi.org/10.1007/s11156-019-00795-7
   Web of Science ®Google Scholar
• Hoogendoorn, M. N. (1996). Accounting and taxation in Europe—A comparative overview. European Accounting Review, 5(sup1), 783–794.
   Google Scholar
• Hung, F. S. (2017). Explaining the nonlinearity of inflation and economic growth: The role of tax evasion. International Review of Economics & Finance, 52, 436–445. https://doi.org/10.1016/j.iref.2017.03.008
   Web of Science ®Google Scholar
• ICAEW. (2018) The effects of mandatory IFRS adoption in the EU: A review of empirical research https://www.icaew.com/-/media/corporate/files/technical/financial-reporting/information-for-better-markets/ifbm-reports/effects-of-mandatory-ifrs-adoption.ashx
   Google Scholar
• IFRS Foundation. (2023) Who uses IFRS Accounting Standards? https://www.ifrs.org/use-around-the-world/use-of-ifrs-standards-by-jurisdiction/
   Google Scholar
• Imali, D. (2020). Tax Implications on IFRS 15 Revenue and IFRS 16 Leases. The Institute of Certified Public Accountants of Kenya, September(2020).
   Google Scholar
• Jirásková, S., & Molín, J. (2015). IFRS adoption for accounting and tax purposes: An issue based on the Czech Republic as compared with other European countries. Procedia Economics and Finance, 25, 53–58. https://doi.org/10.1016/S2212-5671(15)00712-1
   Google Scholar
• Kabir, S. M. S. (2016). Basic guidelines for research. An Introductory Approach for All Disciplines, 4(2), 168–180.
   Google Scholar
• Karampinis, N. I., & Hevas, D. L. (2013). Effects of IFRS adoption on tax-induced incentives for financial earnings management: Evidence from Greece. The International Journal of Accounting, 48(2), 218–247. https://doi.org/10.1016/j.intacc.2013.04.003
   Google Scholar
• Khan, M., Srinivasan, S., & Tan, L. (2017). Institutional ownership and corporate tax avoidance: New evidence. The Accounting Review, 92(2), 101–122. https://doi.org/10.2308/accr-51529
   Web of Science ®Google Scholar
• Klibi, M. F., & Kossentini, A. (2014). Does the adoption of IFRS promote emerging stock markets development? Evidence from MENA countries. International Journal of Accounting, Auditing and Performance Evaluation, 10(3), 279–298. https://doi.org/10.1504/IJAAPE.2014.064242
   Google Scholar
• KPMG. (2020) The Swiss law on accounting and financial reporting [ Accessed on 02/05/2023 from: https://assets.kpmg.com/content/dam/kpmg/ch/pdf/explanation-of-the-most-important-provisions.pdf
   Google Scholar
• KPMG. (2023) IFRS 17: Tax considerations for insurers [ Accessed on 02/05/2023 from https://kpmg.com/xx/en/home/insights/2022/08/ifrs-17-considerations-for-insurers.html]
   Google Scholar
• Kportorgbi, H. (2013). Tax planning corporate governance and performance of listed firms in Ghana. Unpublished Master’s thesis. University of Cape Coast.
   Google Scholar
• Lamantia, F., & Pezzino, M. (2021). Social norms and evolutionary tax compliance. The Manchester School, 89(4), 315–405. https://doi.org/10.1111/manc.12368
   Web of Science ®Google Scholar
• Lee, K., & Yoon, S. (2020). Managerial ability and tax planning: Trade-off between tax and nontax costs. Sustainability, 12(1), 370–383. https://doi.org/10.3390/su12010370
   Web of Science ®Google Scholar
• Leykun Fisseha, F. (2023). IFRS adoption and foreign direct investment in Sub-Saharan African countries: Does the levels of Adoption Matter? Cogent Business & Management, 10(1), 2175441. https://doi.org/10.1080/23311975.2023.2175441
   Web of Science ®Google Scholar
• Nelson, R., & Winter, S. G. (1982). An Evolutionary Theory of Economic Change. The Belknap Press of Harvard University Press.
   Google Scholar
• Okafor, O. N. (2015). Effects of IFRS on accounting quality and tax aggressiveness: Evidence from Canadian mandatory adoption.
   Google Scholar
• Okafor, O. N., Akindayomi, A., & Warsame, H. (2019). Did the adoption of IFRS affect corporate tax avoidance? Canadian Tax Journal, 67(4), 947–979. https://doi.org/10.32721/ctj.2019.67.4.okafor
   Google Scholar
• Okafor, O. N., Mains, D., Olabiyi, O. M., & Warsame, H. (2018). How Did the CRA Expect the Adoption of IFRS to Affect Corporate Tax Compliance and Avoidance. Can Tax Journal, 66(1), 1–22.
   Google Scholar
• Oppong, C., & Aga, M. (2019). Economic growth in European Union: Does IFRS mandatory adoption matter? International Journal of Emerging Markets, 14(5), 792–808. https://doi.org/10.1108/IJOEM-01-2018-0010
   Web of Science ®Google Scholar
• Organisation for Economic Co-operation and Development (OECD). (2019). Revenue Statistics for 2018. OECD.
   Google Scholar
• Organisation for Economic Co-operation and Development (OECD). (2020). Revenue Statistics https://www.oecd.org/tax/tax-policy/revenue-statistics-2522770x.htm
   Google Scholar
• Organisation for Economic Co-operation and Development (OECD). (2022). Revenue Statistics. https://www.oecd.org/tax/revenue-statistics-2522770x.htm (Accessed on 11 April)
   Google Scholar
• Organisation for Economic Co-operation and Development (OECD). (2023). Tax revenue (indicator). Retrieved on 28, 2023. https://doi.org/10.1787/d98b8cf5-en.
   Google Scholar
• Pesaran, M. H., Shin, Y., & Smith, R. P. (1999). Pooled mean group estimation of dynamic heterogeneous panels. Journal of the American Statistical Association, 94(446), 621–634. https://doi.org/10.1080/01621459.1999.10474156
   Web of Science ®Google Scholar
• Platikanova, P. (2017). Debt maturity and tax avoidance. European Accounting Review, 26(1), 97–124. https://doi.org/10.1080/09638180.2015.1106329
   Web of Science ®Google Scholar
• Price Waterhouse Coopers (PWC). (2023) Czech republic: Corporate income determination https://taxsummaries.pwc.com/czech-republic/corporate/income-determination
   Google Scholar
• Procházka, D. (2014). the iFRS as tax base: Potential impact on a small open economy European. Financial and Accounting Journal, 9(4), 59–75. https://doi.org/10.18267/j.efaj.130
   Google Scholar
• Queku, I. C. (2017). Value relevance of international financial reporting standards (IFRS) and shareholders’ wealth maximisation: Evidence from Banks in Ghana. International Journal of Advanced Research, 5(8), 305–316. https://doi.org/10.21474/IJAR01/5063
   Google Scholar
• Queku, I. C. (2018). International financial reporting standards (IFRS) compliance and earning predictability: Evidence from banks in Ghana. International Journal of Innovative Research and Advanced Studies, 4(8), 102–111.
   Google Scholar
• Queku, Y. N. (2020). Value relevance of fair value measurement and stock price predictability: Incremental effect and synergetic analysis of listed banks in Ghana. ADRRI Journal of Arts and Social Sciences, 17(5), 85–110.
   Google Scholar
• Razali, M. W. M., Ghazali, S. S., Lunyai, J., & Hwang, J. Y. T. (2018). Tax Planning and Firm Value: Evidence from Malaysia. The International Journal of Academic Research in Business & Social Sciences, 8(11), 210–222. https://doi.org/10.6007/IJARBSS/v8-i11/4896
   Google Scholar
• Reiss, M. (2015). Effects of fiscal policy on the real economy ( Doctoral dissertation, uniwien).
   Google Scholar
• Samargandi, N., Fidrmuc, J., & Ghosh, S. (2014). Financial development and economic growth in an oil-rich economy: The case of Saudi Arabia. Economic Modelling, 43, 267–278. https://doi.org/10.1016/j.econmod.2014.07.042
   Web of Science ®Google Scholar
• Scott, J. (2000). Rational choice theory. In G. Browning, A. Halcli, & F. Webster (Eds.), Understanding Contemporary Society: Theories of the Present (pp. 126–138). SAGE.
   Google Scholar
• Seidu, B. A., Queku, Y. N., & Carsamer, E. (2021) Financial constraints and tax planning activity: Empirical evidence from ghanaian banking sector, unpublished
   Google Scholar
• Semuel, H., & Nurina, S. (2014). Analysis of the effect of inflation, interest rates, and exchange rates on Gross Domestic Product (GDP) in Indonesia (Doctoral dissertation, Petra Christian University).
   Google Scholar
• Shivanda, A. R., & Obwogi, J. (2018). Effect of macroeconomic variables on tax revenue in Kenya.
   Google Scholar
• Simbi, C., Arendse, J. A., & Khumalo, S. A. (2023). IFRS and FPI nexus: Does the quality of the institutional framework matter for African countries? Journal of Accounting in Emerging Economies, 13(1), 195–215. https://doi.org/10.1108/JAEE-10-2021-0319
   Web of Science ®Google Scholar
• Simon, H. A. (1956). Rational choice and the structure of the environment. Psychological Review, 63(2), 129. https://doi.org/10.1037/h0042769
   PubMed Web of Science ®Google Scholar
• Spengel, C., Heckemeyer, J. H., Bräutigam, R., Nicolay, K., Klar, O., & Stutzenberger, K. (2016). The effects of tax reforms to address the debt-equity bias on the cost of capital and on effective tax rates (No. 65). Taxation Papers.
   Google Scholar
• Sulaiman, C., & Abdul-Rahim, A. S. (2020). The impact of wood fuel energy on economic growth in sub-Saharan Africa: Dynamic macro-panel approach. Sustainability, 12(8), 3280. https://doi.org/10.3390/su12083280
   Web of Science ®Google Scholar
• Sun, H., Zhang, C., Zhang, J., & Zhang, X. (2022). How does mandatory IFRS adoption affect tax planning decision? Evidence from tax avoidance distributions. In Accounting Forum (pp. 1–31). Routledge.
   Google Scholar
• Tawiah, V. (2019). The state of IFRS in Africa. Journal of Financial Reporting and Accounting, 17(4), 635–649. https://doi.org/10.1108/JFRA-08-2018-0067
   Web of Science ®Google Scholar
• Usman, O. A., & Adejare, A. T. (2013). Inflation and capital market performance: The Nigerian outlook. Journal of Emerging Trends in Economics and Management Sciences, 5(1), 93–99.
   Google Scholar
• Waruiru, R. (2020). An Overview of the Tax Impact of IFRS 15 (Revenue Recognition) and IFRS 16 (Leases). The Institute of Certified Public Accountants of Kenya, September(2020), 1–16.
   Google Scholar
• World Bank. (2020) “Tax revenue (% of GDP)”, [ Available at: https://data.worldbank.org/indicator/GC.TAX.TOTL.GD.ZS
   Google Scholar
• Zwan, P. (2020) Relevance of accounting standards to South African taxpayers https://taxfaculty.ac.za/news/read/relevance-of-accounting-standards-to-south-african-taxpayers
   Google Scholar