This research has tried to study side of the overlap between the
financial accounting and the tax accounting, which could cause effects on
the results of tax by the measurement accounting acts, this research has
studied the impact of the earnin
gs management in companies on the
results of tax of these companies, and the impact of the income
smoothing, as a special mechanism of the earnings management, on the
results of tax, the income smoothing has been studied in this research as
the management when smoothes the income it doesn't recognize incomes
in the accounting periods itself where there are these profits, but it acts on
distribution the income among the years to ease fluctuations in earnings
among accounting periods, and thus it avoids large payable taxes in the
progressive tax which is compatible with high profits, so that it works to
keep profits within the limits of acceptable deductions, but in this
research and in the case of the non-progressive Syrian corporation tax
which removes the last effect of income smoothing on the Syrian
corporation tax, but can be done to take advantage of the process of tax
planning to schedule the taxes that are paid among years, therefore this
research has tested the relationship between income smoothing and
taxable income, and has tested whether there are tax motivations behind
the income smoothing, that has been made through testing the
relationship between income smoothing with both of "the differences
between taxable income and book income" and "the variation in taxable
income".
The assumed relationships has been tested through testing the
hypotheses by using the appropriate statistical methods to the data which
are obtained from a sample of companies listed in the Damascus
Securities during 2006 to 2012.
I found that there is a strong relationship between earnings
management and taxable income, but theses earnings are not managed
because of tax motivations, and there is a weak relationship between
income smoothing and taxable income
