The gap between the accounting and tax is resulted from different definitions of capital expenditure and qualifying asset and also different deduction rate and useful life used in calculating depreciation. This paper proposes the government to revise the current capital allowance system....
the massive recourse of large firms to debt generates debt costs that are too high. These costs increase progressively when the inflation rate increases. This in turn affects the firm value. On the other hand, the disclosure of financial information (debts and profits) imposes more taxes. In ...