Journal of Digital Convergence (디지털융복합연구)

The Society of Digital Policy and Management (한국디지털정책학회)
권호 표지
DOI QR코드

DOI QR Code

The Effect of Tax Investigation Probability on Entertainment Expenses in the Construction Industry

건설업의 세무조사 가능성이 접대비 지출에 미치는 영향

  • Ahn, Mi-Gang (Department of Accounting, Changwon National University) ;
  • Lee, Su-Ji (Department of Accounting, Changwon National University) ;
  • Park, Sung-Jae (Department of Accounting, Changwon National University)
  • Received : 2021.02.02
  • Accepted : 2021.05.20
  • Published : 2021.05.28
Download PDF
⟨ Previous Next ⟩

Abstract

This study examined whether the probability of a tax investigation by the general construction industry could reduce the entertainment expenses in order to confirm whether a tax investigation can reduce excessive discretionary expenses of firms. Among the general construction industry listed on the KOSPI and KOSDAQ from 2011 to 2018, 274 firms with sales exceeding 10 billion won in the previous year were targeted at the tax audit selection rate and the tax audit detection rate, which is a proxy for the possibility of a tax investigation. The effect of the ratio of entertainment expenses to sales and the increase rate of entertainment expenses was verified. As a result of the analysis, both the selection rate and the detection rate of the tax investigation have a significant negative effect on the proxy variable of the discretionary expenses measured as the proportion of entertainment expenses and the increase rate of entertainment expenses. The results of this study showed that the tax investigation is a means to curb the excessive expenditure of the firm's discretionary expenses, thus suggesting the direction for the taxation policy and the effectiveness of the tax investigation.

본 연구는 세무조사가 기업의 과도한 재량적 비용을 감소시키고 성실 세무신고 유인을 제공할 수 있는지 확인하고자 종합건설업의 세무조사 가능성과 접대비 지출 크기의 관계를 살펴보았다. 이를 위해 2011년부터 2018년까지 상장된 종합건설업 중 전년도 매출액이 100억원을 초과한 274개 기업을 대상으로 세무조사 가능성의 대용치인 세무조사선정률과 세무조사 적발률이 매출액 대비 접대비 비중과 접대비 증가율에 미치는 영향을 검증하였다. 분석 결과 세무조사 선정률과 적발률 모두 접대비 비중과 접대비 증가율로 측정된 재량적 비용의 대용변수에 유의한 음(-)의 영향을 주어 세무조사 가능성이 증가할수록 종합건설업은 접대비 지출을 줄이고 있음을 알 수 있었다. 본 연구의 결과는 세무조사가 재량적 비용의 지나친 지출을 억제할 수 있는 수단임을 보여줌으로써 과세당국의 과세 정책을 위한 방향과 세무조사의 실효성을 제시해 주었다.

Keywords

References

  1. M. T. Kim, K. H. Yoon, & S. H. Lee (2015), The Effect of Accet Efficiency and Perk Consumption on Default Risk in the Construction Industry, Korea International Accounting Review, 60, 159-180. DOI: http://dx.doi.org/10.21073/kiar.2015..60.007
  2. M. T. Kim & S. H. Lee (2017), The Impact of Excessive Entertainment Expenses on Earnings Management, Review of Accounting and Policy Studies, 22(3), 1-20. DOI : 10.21737/kjar.2017.06.22.3.1
  3. W. O. Jung, C. W. Park, & J. I. Park (2008), The Effect of Tax Rate Changes on Corporate Spending of Entertainment Expenditures, Korean Management Review, 37(1). 165-195.
  4. J. I. Park, K. A. Jeon, & S. I. Kim (2019), The Effect of Tax Risk on the Dividend Payouts and Entertainment Expenses, Korean Management Review, 48(5). 1153-1193. DOI: 10.17287/kmr.2019.48.5.1153
  5. Y. J. Lee (2017), An Analysis on The types of Corporate Tax Planning Strategy, Korean Accounting Association Annual Meeting 2017, 2, (pp.1-42). Seoul.
  6. J. Slemrod, M. Blumenthal & C. Christian (2001), Taxpayer responses to an increased probability of audit : evidence from a controlled experiment in Minnesota, Journal of Public Economic, 79, 455-483. DOI: 10.1016/S0047-2727(99)00107-3
  7. E. S. Lee & M. H. Kim (2006), Transparency Improving Ways in the Practice of Financial Accounting in the Constriction Industry in Korea, Construction & Economy Research Institute of Korea, Seoul.
  8. H. J. Park, Y. S. Choi, & H. H. Shin (2004), The Korean Firms' Agency Costs and Firm Value: Role of Foreign Investors' Equity Ownership, Korean Management Review, 33(2), 655-682.
  9. Y. Yafeh & O. Yosha (2003), Large Shareholders and Banks: Who monitors and How?, Economics Journa,l 113(Jan), 128-146. DOI: 10.1111/1468-0297.00087
  10. K. W. Park & K, B. Kim (2011), The Effect of the Degree of Industrial Competition and Cost of Entry on Accounting Alternative of Entertainment Expenses, Korean Journal of Business Administration, 24(6), 3481-3504.
  11. J. I. Park (2008), The Effect of Corporate Governance on Entertainment Expense and Entertainment Expense in Excess of Corporate Tax Deduction Limit, Study on Accounting, Taxation & Auditing, 47, 141-180.
  12. M. T. Kim & H. J. Kwon (2009), The Impacts of Manager's Effort and Perk on Credit Ratings, Korean Journal of Business Administration, 22(4), 1845-1866.
  13. H. S. Shim & C. S. Kang (2008), The Impact of Entertainment or Donation Expenditure on Tax Audit, Korean Journal of Business Administration, 21(3), 961-984.
  14. H. R. Shim, J. E. Koo, & K. H. Choi (2019), The Effect of the Tax Audit Rates on the Corporate Tax Avoidance, Korean Journal of Taxation Research, 36(1), 81-111.
  15. Y. S. Koh & J. H. Lee (2011), A Study on Accounting Alternative of Entertainment Expenditures and Tax Avoidance, Korean Journal of Taxation Research, 28(2), 101-132.
  16. J. Hoopes, D. Mescall & J. Pittman (2012), Do IRS Audits Deter Corporate Tax Avoidance?, The Accounting Review, 87(5), 1603-1639. DOI: 10.2308/accr-50187
  17. E. J. Ryou & M. G. Ahn (2020), An Effect of CEO Characteristics and Marketing Activities on Management Performance of Fashin Corporate, Asia-Pacific Journal of Business, 11(4), 103-119. DOI: https://doi.org/10.32599/apjb.11.4.202012.103.
  18. H. K. Kwon & M. G. Ahn (2021), The Effect of Firm Characteristics on the Female Employment Ratio, Journal of Digital Convergence, 19(1), 177-186. DOI: http://dx.doi.org/10.14400/JDC.2021.19.1.177
  19. Y. M. Kwak & S. H. Ji (2019), A Study on the Relevance Between Investments Horizons of Foreign Investor and Book-Tax Difference, Journal of Digital Convergence, 17(2), 72-80. DOI: http://dx.doi.org/10.14400/JDC.2019.17.2.073
  20. H. S. Shim, J. H. Park, & C. S. Kang (2009), The Book-Tax Difference and Tax Audit, Korean Journal of Business Administration, 22(1), 229-260.