A LONGITUDINAL ANALYSIS REGARDING THE EVOLUTION OF PROFIT TAX REGULATIONS IN ROMANIA - AN EMPIRICAL VIEW

The study conducted a longitudinal analysis regarding Romanian profit tax regulations. Beginning with the first profit tax regulation implemented in 1991 and until now, we analyzed based on a empirical approach all changes that have occurred over time in the Romanian accounting environment. The motivation of the study conducted was based on the strong relationship between accounting and taxation in the Romanian accounting environment over time, the profit tax being one of the main items of this relation. This particular study is divided into five sections. After a short introduction and presenting the motivation of the study (section 1), in section 2 we conducted the literature review based on international and national studies regarding the profit tax regulations through the relationship between accounting and taxation. Section 3 presents a brief review of the main Romanian regulations that concerned the profit tax and the most important changes that have occurred over time. In section 4 we conducted the empirical analysis. In this section is realized a series of analysis, aiming the following: (1) the total number of regulations that have amend the main regulations presented in the previous section; (2) the type of amendments implemented over regulations (abolishment, text amendment, adding new articles or alignments); (3) the total number of amendments approved by law without modifications, respectively the total number of amendments approved on the Official Journal through Government Ordinance or Emergency Ordinance and unapproved by law. The empirical analysis conducted documented that the main shortcoming associated with the profit tax regulation is due by the multiple changes which have been subject of the 5 main profit tax regulations. The last section (section 5) consists in presenting the conclusions of the study. As main conclusion, the profit tax regulation is stable only in terms of the small number of main regulations, the large number of amendments creating difficulties in the understanding and application by practitioners.