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Table 1 Book income before tax (BIBT) and taxable income (TI) in the Netherlands and Germany from 2002–2009

From: The detection of earnings management through a decrease of corporate income tax

Country Year Na Mean b IBTR € million Mean TI € million Mean Difference c Ratio of BIBT/TI d
the Netherlands 2002 647 6031 6905 −874 0.87
2003 721 5413 5834 −421 0.92
2004 650 6124 6735 −611 0.91
2005 648 6436 6938 −502 0.92
2006 670 7296 7653 −357 0.95
2007 621 8163 8762 −599 0.93
2008 641 8207 8952 −745 0.91
2009 671 4232 8677 −4445 0.49
Germany 2002 787 7189 7737 −548 0.93
2003 690 7860 9620 −494 0.82
2004 796 7930 8424 −494 0.94
2005 701 8142 8440 −298 0.94
2006 718 8201 8720 −519 0.96
2007 750 9179 9669 −490 0.94
2008 760 4522 4877 −355 0.95
2009 696 3177 4597 −1420 0.69
  1. Source: Author work
  2. aThe book income uses before tax and taxable income before corporation enterprise tax
  3. bThe sample selection started with 1350 and 1850 for Dutch and German listed companies enclosed on the 2000: (1) Company has listed on one of Dutch and German DataStream from 2002 to end 2009, (2) Company has not changed its fiscal year end during the sample period
  4. cMean difference is computed as mean BTRI less mean TI
  5. dRatio of BIBT/TI is the ratio book income before tax to taxable income