Rethinking book–tax conformity: a systematic exploration of methods, debates, and policy trade-offs

Book-tax conformity remains a debated issue in accounting, taxation, and public policy. While some experts argue that aligning financial and tax reporting improves transparency and limits opportunities for earnings management or tax avoidance, others caution against undermining the distinct goals of accounting and taxation. This study offers a systematic review of the literature, critically examining measurement methods, theoretical and empirical debates, and policy trade-offs discussed in the field. Using the PRISMA approach, the review ensures quality and analyzes publications from Scopus Q1–Q4 journals spanning 2000 to 2024. The results highlight differences in measurement approaches, gaps in cross-country analysis, and the need for a more comprehensive framework that includes institutional and behavioral factors. This paper contributes by synthesizing scattered research, identifying areas needing further exploration, and proposing a research agenda to support more informed and balanced policymaking in corporate tax regulation.