Examining Corporate Tax Evaders: Evidence from the Finalized Audit Cases

This paper aims to (1) analyze the profiles of transgressors (detected evaders); (2) examine reason(s) that triggered a tax audit, causes of tax evasion, audit timeframe and tax penalty charged; and (3) to assess if tax auditors followed the guidelines as stated in the 'Tax Audit Framework' when conducting tax audits. In 2011, the Inland Revenue Board Malaysia (IRBM) had audited and finalized 557 company cases. With official permission, data of all the 557 cases were obtained from the IRBM. Of these, a total of 421 cases with complete information were analyzed. About 58.1% was small and medium corporations and from the construction industry (32.8%). The selection for tax audit was based on risk analysis (66.8%), information from third party (11.1%), and firm with low profitability or fluctuating profit pattern (7.8%). The three persistent causes of tax evasion by firms were over claimed expenses (46.8%), fraudulent reporting of income (38.5%) and overstating purchases (10.5%). These findings are consistent with past literature. Results showed that tax auditors took six to 18 months to close audit cases. More than half of tax evaders were fined 45% on additional tax raised during audit for the first offence. The study found tax auditors did follow the guidelines in the 'Tax Audit Framework' in audit selection, settlement and penalty imposition.

Cross-Industry Innovations – Systematic Identification and Adaption

Due to today-s fierce competition, companies have to be proactive creators of the future by effectively developing innovations. Especially radical innovations allow high profit margins – but they also entail high risks. One possibility to realize radical innovations and reduce the risk of failure is cross-industry innovation (CII). CII brings together problems and solution ideas from different industries. However, there is a lack of systematic ways towards CII. Bridging this gap, the present paper provides a systematic approach towards planned CII. Starting with the analysis of potentials, the definition of promising search strategies is crucial. Subsequently, identified solution ideas need to be assessed. For the most promising ones, the adaption process has to be systematically planned – regarding the risk affinity of a company. The introduced method is explained on a project from the furniture industry.

Knowledge Representation and Retrieval in Design Project Memory

Knowledge sharing in general and the contextual access to knowledge in particular, still represent a key challenge in the knowledge management framework. Researchers on semantic web and human machine interface study techniques to enhance this access. For instance, in semantic web, the information retrieval is based on domain ontology. In human machine interface, keeping track of user's activity provides some elements of the context that can guide the access to information. We suggest an approach based on these two key guidelines, whilst avoiding some of their weaknesses. The approach permits a representation of both the context and the design rationale of a project for an efficient access to knowledge. In fact, the method consists of an information retrieval environment that, in the one hand, can infer knowledge, modeled as a semantic network, and on the other hand, is based on the context and the objectives of a specific activity (the design). The environment we defined can also be used to gather similar project elements in order to build classifications of tasks, problems, arguments, etc. produced in a company. These classifications can show the evolution of design strategies in the company.

A Training Model for Successful Implementation of Enterprise Resource Planning

It well recognized that one feature that makes a successful company is its ability to successfully align its business goals with its information communication technologies platform. Enterprise Resource Planning (ERP) systems contribute to achieve better performance by integrating various business functions and providing support for information flows. However, the technological systems complexity is known to prevent the business users to exploit in an efficient way the Enterprise Resource Planning Systems (ERP). This paper aims to investigate the role of training in improving the usage of ERP systems. To this end, we have designed an instrument survey to employees of a Norwegian multinational global provider of technology solutions. Based on the analysis of collected data, we have delineated a training model that could be high relevance for both researchers and practitioners as a step towards a better understanding of ERP system implementation.

The Effect of Harmonic Power Fluctuation for Estimating Flicker

Voltage flicker problems have long existed in several of the distribution areas served by the Taiwan Power Company. In the past, those research results indicating that the estimated ΔV10 value based on the conventional method is significantly smaller than the survey value. This paper is used to study the relationship between the voltage flicker problems and harmonic power variation for the power system with electric arc furnaces. This investigation discussed thought the effect of harmonic power fluctuation with flicker estimate value. The method of field measurement, statistics and simulation is used. The survey results demonstrate that 10 ΔV estimate must account for the effect of harmonic power variation.

Measuring Relative Efficiency of Korean Construction Company using DEA/Window

Sub-prime mortgage crisis which began in the US is regarded as the most economic crisis since the Great Depression in the early 20th century. Especially, hidden problems on efficient operation of a business were disclosed at a time and many financial institutions went bankrupt and filed for court receivership. The collapses of physical market lead to bankruptcy of manufacturing and construction businesses. This study is to analyze dynamic efficiency of construction businesses during the five years at the turn of the global financial crisis. By discovering the trend and stability of efficiency of a construction business, this study-s objective is to improve management efficiency of a construction business in the ever-changing construction market. Variables were selected by analyzing corporate information on top 20 construction businesses in Korea and analyzed for static efficiency in 2008 and dynamic efficiency between 2006 and 2010. Unlike other studies, this study succeeded in deducing efficiency trend and stability of a construction business for five years by using the DEA/Window model. Using the analysis result, efficient and inefficient companies could be figured out. In addition, relative efficiency among DMU was measured by comparing the relationship between input and output variables of construction businesses. This study can be used as a literature to improve management efficiency for companies with low efficiency based on efficiency analysis of construction businesses.

The Survey and the Comparison of Maximum Likelihood, Mahalanobis Distance and Minimum Distance Methods in Preparing Landuse Map in the Western Part of Isfahan Province

In this research three methods of Maximum Likelihood, Mahalanobis Distance and Minimum Distance were analyzed in the Western part of Isfahan province in the Iran country. For this purpose, the IRS satellite images and various land preparation uses in region including rangelands, irrigation farming, dry farming, gardens and urban areas were separated and identified. In these methods, matrix error and Kappa index were calculated and accuracy of each method, based on percentages: 53.13, 56.64 and 48.44, were obtained respectively. Considering the low accuracy of these methods to separate land uses due to spread of the land uses, it-s suggested the visual interpretation of the map, to preparing the land use map in this region. The map prepared by visual interpretation is in high accuracy if it will be accompany with the visit of the region.

Rotor Bearing System Analysis Using the Transfer Matrix Method with Thickness Assumption of Disk and Bearing

There are lots of different ways to find the natural frequencies of a rotating system. One of the most effective methods which is used because of its precision and correctness is the application of the transfer matrix. By use of this method the entire continuous system is subdivided and the corresponding differential equation can be stated in matrix form. So to analyze shaft that is this paper issue the rotor is divided as several elements along the shaft which each one has its own mass and moment of inertia, which this work would create possibility of defining the named matrix. By Choosing more elements number, the size of matrix would become larger and as a result more accurate answers would be earned. In this paper the dynamics of a rotor-bearing system is analyzed, considering the gyroscopic effect. To increase the accuracy of modeling the thickness of the disk and bearings is also taken into account which would cause more complicated matrix to be solved. Entering these parameters to our modeling would change the results completely that these differences are shown in the results. As said upper, to define transfer matrix to reach the natural frequencies of probed system, introducing some elements would be one of the requirements. For the boundary condition of these elements, bearings at the end of the shaft are modeled as equivalent spring and dampers for the discretized system. Also, continuous model is used for the shaft in the system. By above considerations and using transfer matrix, exact results are taken from the calculations. Results Show that, by increasing thickness of the bearing the amplitude of vibration would decrease, but obviously the stiffness of the shaft and the natural frequencies of the system would accompany growth. Consequently it is easily understood that ignoring the influences of bearing and disk thicknesses would results not real answers.

Kaikaku - Radical Improvement in Production

Considering today-s increasing speed of change, radical and innovative improvement - Kaikaku, is a necessity parallel to continuous incremental improvement - Kaizen, especially for SME-s in order to attain the competitive edge needed to be profitable. During 2011, a qualitative single case study with the objective of realizing a kaikaku in production has been conducted. The case study was run as a one year project using a collaborative approach including both researchers and company representatives. The case study was conducted with the purpose of gaining further knowledge about kaikaku realization as well as its implications. The empirical results provide insights about the great productivity results achieved by applying a specific kaikaku realization approach. However, it also sheds light on the difficulty and contradiction of combining innovation management and production system development.

Critical Factors to Company Success in the Construction Industry

Achieving success is a highly critical issue for the companies to survive in a competitive business environment. The construction industry is also an area where there is strong competition due to a large number of construction contractors. There have been many factors such as qualified employees, quality workmanship and financial management that can lead to company success in the construction industry. The aim of this study was to investigate the critical factors leading to construction company success. Within this context, a survey was carried out among 40 Turkish construction companies which are located in the Northwest region of Turkey. In this survey, top-level managers and owners of the companies were interviewed. The interviews took place over a five month period between January and May 2007. Finally, the ranking of the critical success factors has been determined by using the Simple Multi Attribute Rating Technique (SMART). Based on the results, business management, financial conditions and owner/manager characteristics were determined as the most important factors to company success.

Evaluation of an Offshore Wind Power Project: Economic, Strategic and Environmental Value

The use of wind energy for electricity generation is growing rapidly across the world and in Portugal. However, the geographical characteristics of the country along with the average wind regime and with the environmental restrictions imposed to these projects create limitations to the exploit of the onshore wind resource. The best onshore wind spots are already committed and the possibility of offshore wind farms in the Portuguese cost is now being considered. This paper aims to make a contribution to the evaluation of offshore wind power projects in Portugal. The technical restrictions are addressed and the strategic, environmental and financial interest of the project is analysed from the private company and public points of view. The results suggest that additional support schemes are required to ensure private investors interest for these projects. Assuming an approach of direct substitution of energy sources for electricity generation, the avoided CO2 equivalent emissions for an offshore wind power project were quantified. Based on the conclusions, future research is proposed to address the environmental and social impacts of these projects.

Structural Integrity Management for Fixed Offshore Platforms in Malaysia

Structural Integrity Management (SIM) is important for the protection of offshore crew, environment, business assets and company and industry reputation. API RP 2A contained guidelines for assessment of existing platforms mostly for the Gulf of Mexico (GOM). ISO 19902 SIM framework also does not specifically cater for Malaysia. There are about 200 platforms in Malaysia with 90 exceeding their design life. The Petronas Carigali Sdn Bhd (PCSB) uses the Asset Integrity Management System and the very subjective Risk based Inspection Program for these platforms. Petronas currently doesn-t have a standalone Petronas Technical Standard PTS-SIM. This study proposes a recommended practice for the SIM process for offshore structures in Malaysia, including studies by API and ISO and local elements such as the number of platforms, types of facilities, age and risk ranking. Case study on SMG-A platform in Sabah shows missing or scattered platform data and a gap in inspection history. It is to undergo a level 3 underwater inspection in year 2015.

Modeling of CO2 Removal from Gas Mixtureby 2-amino-2-methyl-1-propanol (AMP) Using the Modified Kent Eisenberg Model

In this paper, the solubility of CO2 in AMP solution have been measured at temperature range of ( 293, 303 ,313,323) K.The amine concentration ranges studied are (2.0, 2.8, and 3.4) M. A solubility apparatus was used to measure the solubility of CO2 in AMP solution on samples of flue gases from Thermal and Central Power Plants of Esfahan Steel Company. The modified Kent Eisenberg model was used to correlate and predict the vapor-liquid equilibria of the (CO2 + AMP + H2O) system. The model predicted results are in good agreement with the experimental vapor-liquid equilibrium measurements.

Hazard Contributing Factors Classification for Petrol Fuel Station

Petrol Fuel Station (PFS) has potential hazards to the people, asset, environment and reputation of an operating company. Fire hazards, static electricity air pollution evoked by aliphatic and aromatic organic compounds are major causes of accident/incident occurrence at fuel station. Activities such as carelessness, maintenance, housekeeping, slips trips and falls, transportation hazard, major and minor injuries, robbery and snake bites has a potential to create unsafe conditions. The level of risk of these hazards varies according to location and country. The emphasis on safety considerations by the government is variable all around the world. Developed countries safety records are much better as compared to developing countries safety statistics. There is no significant approach available to highlight the unsafe acts and unsafe conditions during operation and maintenance of fuel station. Fuel station is the most commonly available facilities that contain flammable and hazardous materials. Due to continuous operation of fuel station they pose various hazards to people, environment and assets of an organization. To control these hazards, there is a need for specific approach. PFS operation is unique as compared to other businesses. For smooth operations it demands an involvement of operating company, contractor and operator group. This study will focus to address hazard contributing factors that have a potential to make PFS operation risky. One year data collected, 902 activities analyzed, comparisons were made to highlight significant contributing factors. The study will provide help and assistance to PFS outlet marketing companies to make their fuel station operation safer. It will help health safety and environment (HSE) professionals to arrest the gap available related to safety matters at PFS.

Examining Herzberg-s Two Factor Theory in a Large Chinese Chemical Fiber Company

The validity of Herzberg-s Two-Factor Theory of Motivation was tested empirically by surveying 2372 chemical fiber employees in 2012. In the valid sample of 1875 respondents, the degree of overall job satisfaction was more than moderate. The most highly valued components of job satisfaction were: “corporate image," “collaborative working atmosphere," and “supervisor-s expertise"; whereas the lowest mean score was 34.65 for “job rotation and promotion." The top three job retention options rated by the participants were “good image of the enterprise," “good compensation," and “workplace is close to my residence." The overall evaluation of the level of thriving facilitation workplace reached almost to “mostly agree." For those participants who chose at least one motivator as their job retention options had significantly greater job satisfaction than those who chose only hygiene factors as their retention options. Therefore, Herzberg-s Two-Factor Theory of Motivation was proven valid in this study.

Analysis of Program PRIME at Brazil

Policies that support entrepreneurship are keys to the generation of new business. In Brazil, seed capital, installation of technology parks, programs and zero interest financing, economic subsidy as Program First Innovative Company (PRIME) are examples of incentive policies. For the implementation of PRIME, in particular the Brazilian Innovation Agency (FINEP) decentralized operationalization so that business incubators could select innovative projects. This paper analyzes the program PRIME Business Incubator Center of the State of Sergipe (CISE) after calculating the mean and standard deviation of the grades obtained by companies in the factors of innovation, market potential, financial return economic, market strategy and staff and application of the Mann-Whitney test.

Modeling Corporate Memories using the ReCaRo Model, Some Experiments

This paper presents a model of case based corporate memory named ReCaRo (REsource, CAse, ROle). The approach suggested in ReCaRo decomposes the domain to model through a set of components. These components represent the objects developed by the company during its activity. They are reused, and sometimes, while bringing adaptations. These components are enriched by knowledge after each reuse. ReCaRo builds the corporate memory on the basis of these components. It models two types of knowledge: 1) Business Knowledge, which constitutes the main knowledge capital of the company, refers to its basic skill, thus, directly to the components and 2) the Experience Knowledge which is a specialised knowledge and represents the experience gained during the handling of business knowledge. ReCaRo builds corporate memories which are made up of five communicating ones.

Scrum as the Method Supporting the Implementation of Knowledge Management in an Organization

Many companies have switched their processes to project-oriented in the last years. This brings new possibilities and effectiveness not only in the field of external processes connected with the product delivery but also the internal processes as well. However centralized project organization which is based on the role of project manager in the team has proved insufficient in some cases. Agile methods of project organization are trying to solve this problem by bringing new view on the project organization, roles, processes and competences. Scrum is one of these methods which builds on the principles of knowledge management to drive the project to effectiveness from all view angles. Using this method to organize internal and delivery projects helps the organization to create and share knowledge throughout the company. It also supports forming unique competences of individuals and project teams and drives innovations in the company.

Enhancing Operational Effectiveness in the Norwegian Army through Simulation-Based Training

The Norwegian Military Academy (Army) has initiated a project with the main ambition to explore possible avenues to enhancing operational effectiveness through an increased use of simulation-based training and exercises. Within a cost/benefit framework, we discuss opportunities and limitations of vertical and horizontal integration of the existing tactical training system. Vertical integration implies expanding the existing training system to span the full range of training from tactical level (platoon, company) to command and staff level (battalion, brigade). Horizontal integration means including other domains than army tactics and staff procedures in the training, such as military ethics, foreign languages, leadership and decision making. We discuss each of the integration options with respect to purpose and content of training, "best practice" for organising and conducting simulation-based training, and suggest how to evaluate training procedures and measure learning outcomes. We conclude by giving guidelines towards further explorative work and possible implementation.

Identification of Factors Influencing Company's Competitiveness

Fast development of technologies, economic globalization and many other external circumstances stimulate company’s competitiveness. One of the major trends in today’s business is the shift to the exploitation of the Internet and electronic environment for entrepreneurial needs. Latest researches confirm that e-environment provides a range of possibilities and opportunities for companies, especially for micro-, small- and medium-sized companies, which have limited resources. The usage of e-tools raises the effectiveness and the profitability of an organization, as well as its competitiveness. In the electronic market, as in the classic one, there are factors, such as globalization, development of new technology, price sensitive consumers, Internet, new distribution and communication channels that influence entrepreneurship. As a result of eenvironment development, e-commerce and e-marketing grow as well. Objective of the paper: To describe and identify factors influencing company’s competitiveness in e-environment. Research methodology: The authors employ well-established quantitative and qualitative methods of research: grouping, analysis, statistics method, factor analysis in SPSS 20 environment, etc. The theoretical and methodological background of the research is formed by using scientific researches and publications, such as that from mass media and professional literature; statistical information from legal institutions as well as information collected by the authors during the surveying process. Research result: The authors detected and classified factors influencing competitiveness in e-environment.  In this paper, the authors presented their findings based on theoretical, scientific, and field research. Authors have conducted a research on e-environment utilization among Latvian enterprises.