The Study On The Difference Between Accounting System And Tax Law

The difference between accounting system and tax law is getting larger and larger, which has become an urgent problem for the work of accounting and the management of taxation, it involves the formation and completion of accounting system and the perfection of tax law. This paper completely and systematically analyses the difference and its causes between accounting system and tax law and puts forward some principles to the contradiction and some suggestions.The difference between accounting system and tax law results from historical background, which mainly consists in the difference in their aims, and then difference occurs in hypotheses and principles. It is inevitable and reasonable for the difference to exist, but is harmful for both the taxpayers and tax officers when the difference becomes larger. In my opinion, we can coordinate the difference between them if we act on systematic principle, and we should try to form a complete set of accounting system and tax law.The whole paper has five parts.Part one begins with the relation between accounting and revenue, analyzes the relation mode between accounting system and tax law in the world, and points out the accounting system and tax law in China nowadays are separate.Part two analyzes the income book-tax difference of listed companies in China from 2001 to 2004 by statistic data and the outcome of difference between accounting system and tax law.Part three is the compare and analysis of the accounting system and tax law from practice in details, to compare and analyze the two's difference in income affirmation, deducting items, assets handling, investing, dealing with ones related and debts reconstruction, and so on.Part four analyzes the backgrounds and reasons of the difference between accounting system and tax law, and points out the inevitability of the difference. Thereason of the difference is the dissimilarity on aim, hypotheses and principles of two standards.Part five discusses the mode treating the difference in China, results in the choice of coordination mode and provides the principles and suggestions of coordination.