Chan, Koon HungKoon HungChanLin, K. Z.Mo, P. L. L.2021-07-242021-07-242010https://repository.sfu.edu.hk/handle/sfu/1019We investigate whether a departure from a tax-based accounting system toward the adoption of International Financial Reporting Standards encourages tax noncompliance. We also examine whether such a departure, which weakens book-tax conformity, affects the informativeness of book-tax differences for tax noncompliance. Our evidence suggests that as book-tax conformity decreases, tax noncompliance increases. Although book-tax differences remain informative of tax noncompliance, the informativeness attenuates as book-tax conformity weakens. Additionally, firms with high incentives to inflate book income are more tax compliant than their counterparts after the departure from a tax-based accounting system.enjournal article10.1016/j.jacceco.2010.02.001