THE IMPACT OF ACCOUNTING DISCLOSURE OF ENVIRONMENTAL COSTS IN FINANCIAL STATEMENTS IN THE CEMENT INDUSTRY SECTOR ON DETERMINING TAX STATUS A CASE STUDY OF A CEMENT PLANT

The present research assesses the impact of accounting disclosure of environmental costs in the financial statements of the cement industry sector in Egypt on the determination of the tax position. The main objective of the study was achieved through formulating four fundamental hypotheses related to measuring the impact of accounting disclosure of environmental costs—as independent variables—on the tax position of companies as the dependent variable. Accounting disclosure of environmental costs was explained through four sub-independent variables: environmental costs, realized profits, total costs, and operating revenues. The tax position of companies, as the dependent variable, was represented by two sub-variables: income tax and value-added tax (VAT). The study adopted the descriptive-analytical approach, and the questionnaire was used as the primary tool for collecting the necessary data. The general findings revealed a statistically significant effect of accounting disclosure of environmental costs on income tax. The study also found a statistically significant effect of accounting disclosure of environmental costs on value-added tax in the cement industry sector. The study recommended restructuring the methods of measuring and accounting for environmental costs and enhancing the level of disclosure related to them, as well as the need to unify the procedures and mechanisms for disclosing environmental costs in cement companies in Egypt.