Disconnection between accounting and taxation; possibility or compulsion?

Abstract

Background and problem analysis: Sweden has for the better part of the 20th century had a very strong link between taxation and accounting, but Sweden has become increasingly more influenced by the Anglo-Saxon tradition, where there is no such link. Joining the European Union in 1995 and the introduction of the IAS regulations in 2005 have started a debate about whether a disconnection of the taxation and the accounting, as there have been in other countries, would be better than keeping the link. Corporate accounting regulations in Sweden are mostly set by different accounting regulatory bodies, so it should therefore be of interest to discover their opinions in the matter, as well as the opinions of other interested parties, such as the Swedish taxation government, the Confederation of Swedish Enterprise and the accounting profession. Purpose: To find out the personal thoughts and reflections of people representing various interested parties with regards to the discussion of a possible disconnection. Limitations: The subject has been limited to the parties that the writers thought were the most influential and the most interested in the possible disconnection. The essay is also limited to subjective views since a general study takes a lot more time and effort than the time frame of ten weeks permits. Furthermore, the geographical area is limited to Gothenburg, with the exception of the interview with the respondents from the Confederation of Swedish Enterprise. Method: The empirical part of the essay has been collected through interviews with the chosen respondents. As for the theory part, the authors collected information through books, articles, and internet sources. The conclusions were drawn from the gathered material of the theory and the empirical research. Result and conclusions: The respondents are not in favour of a disconnection in general, but they acknowledge that it is likely that there will be at least a higher degree of disconnection in the future. Suggestions for further research: How other countries have dealt with their disconnections with regards to regulations and in the event of a dispute. This can be used to see whether the “common experience”, existing in countries that have always had a fairly disconnected relation between accounting and taxation, can be used in Sweden if there were to be a disconnection.