Accounting and taxation - relationship of connection or disconnection. A Romanian Case Study

Abstract

The relationship between accounting and taxation is quite controversial in the contemporary global context, due to the fact that there is no convergence and harmonization especially in what concerns the tax national rules and regulations. The main purpose of the research is quantifying the relationship between accounting and taxation by means of analytical accounting procedures and regression analysis and determining the degree of connection or disconnection between the two domains. As operational objectives, the research establishes whether accounting is dependent in practice on taxation, that is, if the fiscal rules influence the quality of the accounting information and determines the degree of influence that taxation has on the accounting information, policies and decisions. The main results showed that taxation and accounting are connected in practice, the degree of influence tax rules and regulations have on the accounting information, policies and decisions, being quantified at 43,9%, a very high percentage that is justified by the specific regulations of the analyzed economic sector. Over time, the influence of taxation on accounting registers a fluctuating evolution, determined by the frequent changes of the tax legislative framework. Thus, if in 2018 the influence was quantified at 73,5%, in 2015 the influence was of only 10,1%.