Study Of Independence And Its Framework Of Accounting For Income Taxes

Income tax is playing an increasingly important role in the economy. With the deeply reform of accounting and tax, income tax accounting become a focus once again. Where will income tax accounting go? We look forward to the answer. In order to meet the trend of international accounting, the Ministry of Finance issued "Enterprise Accounting Standard No.18--Income Tax" in early 2006, which standardize the income tax accounting advice from the perspective of government departments.From the early of 1950s, the accounting profession has triggered a larger controversy on income tax sharing issues. This paper seeks to research the independence of income tax accounting, in order to rationalize the relationship between the accounting and tax laws. This paper holds that the inconsistence on goal of accounting and tax law is the inherent causes of the differences in accounting and tax law. On the basis of the analysis of the differences between accounting standards and income tax, the author raise an explanation of the difference and coordination between accounting and tax law from the respective of Game theory."Should the income tax accounting be independent once again" aroused people's attention, and this paper suggests that income tax accounting should be isolated from the financial accounting. The author believe that income tax accounting's independence is the objective demand of economic activity, a natural choice facing the increasing difference between accounting and tax laws, the inevitable choice of improving tax collection system and enterprise pursuing self-interest as well.In order to clarify such a problem from the perspective of income tax accounting independence, through learning from the major developed countries, this paper not only do some research and consideration of the framework of income tax accounting, but also conduct some analysis of the feasibility of the implementation in China and some narrative of a series of issues about the independence of income tax accounting at the same time.