Publication Type

Working Paper

Publication Date

3-2017

Abstract

Taking advantage of the mandatory disclosure of detected corporate taxevasions in China, we examine why publicly listed firms evade taxes. Different from mostprior studies that focus on corporate income tax avoidance, we consider tax evasions relatedto both income taxes and non-income taxes. We also use a bivariate probit model to accountfor the partial observability of corporate tax evasion. Many of our regression results using thebivariate probit model are different from the results using the reduced form probit model thatignores the partial observability of tax evasion. Many of our results are also different fromthose of prior research on the determinants of corporate tax avoidance using the traditionaleffective tax rate as a proxy for tax avoidance.

Keywords

Tax avoidance, tax evasion, China, SOE

Discipline

Taxation

Research Areas

Corporate Reporting and Disclosure

First Page

1

Last Page

38

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://abfer.org/Annual-Conference/2017/docs/prog-5/ac2017p5016_why_do_publicly_listed_firms_evade_taxes.pdf

Included in

Taxation Commons

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