Name: Kasraoui Abdelkader, Naoui Kamel
Country: India

Year: 2021
Volume: Volume-8, Issue-1 (January-June)
Page Number: 38-47

Abstract
The difference between the accounting standards and the tax legislation generates a divergence in
income calculation process. This study aims to investigate the non-discretionary book to tax
differences in the Tunisian context. Using a panel data of 31 Tunisian listed companies on the Tunis
Stock Exchange over a period of 2010-2016, we estimate the taxable income for each firm-year to
calculate the difference between the book income before tax and the tax income named "Incomeeffect" and we determine the difference between the theoretical tax on book income before tax and
the tax payable named “Tax-effect”.Secondly, we model the book to tax differences by four
explanatory variables (Change in Net Sales, Profitability, Change in intangible assets and Dividends
received) . Our findings confirm that the “Tax-effect” is a powerful response variable used for the
non-discretionary book to tax differences in Tunisia.
Keywords: Income-effect, Tax-effect, Book to tax differences