Document Type : Research Paper
Author
Abstract
The main purpose 'of this article is to present new and modem tax accounting system that is designed for state tax affairs organization. An organization's operating environment necessarily influences its financial accounting and reporting system. Understanding the fundamental nature of state tax organization as well significant characteristics of its environment was essential for designing a new and more informative tax accounting system. For this reason, the subject has been fully researched by a study group under conducting of the author of this article as the system designer. .
Two significant characteristics of environment were identified in the process of state tax system. First, the taxation process interval that is long and time-consuming. Second, the nature of state tax revenues that is not eligible for using modified accrual basis of accounting became neither measurable nor available. These characteristics of environment highlight the need for providing information of state tax process; in order to provide this kind of information, state tax process was divided into two separated processes namely administration and financial process. The administration process begins at point of submitting tax return and finished at the time of tax payment. The financial process begins with receiving money and sending it to treasury.
The new model of tax accounting system was designed based on fund theory and defined each stage of administration and financial processes as an individual accounting entity by using account group or fund, respectively. In this model of accounting also, accrual basis mechanism is used for recognizing tax receivables and cash basis is used for realizing tax revenues at the time of receiving taxes.
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