The Political Dynamics of Corporate Tax Avoidance: The Chinese Experience

2021 ◽  
Author(s):  
Hanwen Chen ◽  
Song Tang ◽  
Donghui Wu ◽  
Daoguang Yang
Keyword(s):  
Tax Avoidance ◽  
Tax Planning ◽  
The Political ◽  
Government Contracts ◽  
Political Incentives ◽  
Political Clout ◽  
Political Selection ◽  
Political Appointments ◽  
Favor Exchange ◽  
Tax Payments

In China's political selection system, officials capable of growing local economies are reward-ed with promotions. Eager to demonstrate economic achievements, newly appointed local lead-ers may raise tax revenues to expand fiscal expenditures on infrastructure projects. Against this backdrop, we study how political appointments influence local firms' tax planning. Based on a sample of locally administered state-owned enterprises (SOEs), we find firms decrease their tax avoidance after new leaders take office. The political-turnover effect on these firms' tax positions is more evident when the incoming leaders have more political clout over SOE managers, the incentives to divert resources are stronger, or politician-manager networks are present, and subsides following the launch of the anticorruption campaign. Furthermore, firms with higher post-turnover tax payments subsequently receive more government contracts or subsidies. Overall, our findings suggest political incentives shape the tax-planning activities of SOE managers in a "two-way favor exchange" manner.

scholarly journals Tax Avoidance on Poultry Business Owners in Blitar Regency, East Java Province

2021 ◽  
Vol 4 (1) ◽  
pp. 51-59
Author(s):  
Ratih Sepriana
Keyword(s):  
Small And Medium Enterprises ◽  
Participant Observation ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Phenomenological Approach ◽  
Business Owners ◽  
Tax Planning ◽  
State Revenue ◽  
Tax Payments ◽  
Medium Enterprises

Micro, Small and Medium Enterprises (MSMEs) are expected to be able to contribute to state revenue through tax sectors. The purpose of this study is to determine a profile of poultry business, meaning of tax compliance for poultry business owners, tax avoidance of poultry business owners, and to determine efforts to overcome tax avoidance behavior in poultry business owners in the regency of Blitar. The nature of this study is a qualitative or naturalistic paradigm with a phenomenological approach; Hussrel's transcendental phenomenology involving three interviews. We also interviewed with one tax officer from the tax office. The data were collected from interviews, participant observation, and documentation study. The data were analyzed by descriptions with Hussrel's transcendental phenomenological approach, namely Intentional Analysis, Epoche, and Eidetic Reduction. Data validation was carried out by several triangulation techniques. The results show that the poultry businesses are MSMEs that fall into the medium business category and are the main source of income for the owners. Though they are aware of tax and their obligations, their level of tax compliance remains low. The business owners are aware of tax avoidance, even doing so by reducing the tax payments through tax planning. Thus, efforts should be made to discourage tax avoidance.

Brewing Up Controversy: A Case Exploring the Ethics of Corporate Tax Planning

2015 ◽  
Vol 30 (4) ◽  
pp. 311-327 ◽  
Author(s):  
Megan F. Hess ◽  
Raquel Meyer Alexander
Keyword(s):  
Real World ◽  
Ethical Issues ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Learning Assessment ◽  
Class Discussion ◽  
Corporate Tax ◽  
Tax Havens ◽  
Multinational Organizations ◽  
The U.S

ABSTRACT This instructional case explores the ethical issues surrounding the corporate tax-planning and tax-avoidance strategies of multinational organizations. Drawing on the real-world experiences of SABMiller, one of the world's largest beverage companies, this case provides a launching point for students to consider the ethics of corporate tax planning. The ethics of multinational tax practices, especially the use of tax havens, has recently become the focus of media and legislative debate in both the U.S. and the U.K., and many well-respected companies, such as General Electric, Apple Inc., and Starbucks are now feeling the pressure to reform. In a post-case learning assessment, students demonstrated significant improvement in their understanding and indicated that they enjoyed discussing this controversial issue. The “Implementation Guidance” section and Teaching Notes offer guidance for in-class discussion of the ethical and tax issues in this case.

TAX PLANNING AND STATE AID UNDER THE EUROPEAN LAW

2021 ◽  
Vol 66 (05) ◽  
pp. 228-232
Author(s):  
Aygun Gunduz Guliyeva ◽  
Keyword(s):  
Key Words ◽  
Rule Of Law ◽  
Tax Avoidance ◽  
Tax Planning ◽  
State Aid ◽  
European Court Of Justice ◽  
European Law ◽  
The Rule Of Law ◽  
Court Of Justice ◽  
European Court

There is a strong link between funding criteria from government sources and the advantage and selectivity associated with classifying an event as government assistance. However, the selectivity criterion is very important when considering whether there is a banned state aid. Finally, the European Court of Justice no longer applies the rule of law and exclusion to selectivity. Instead, the selectivity review consists of two parts: whether a precaution is selective and whether preference is necessary and proportionate. Key words: EU, tax, tax avoidance, state aid, tax planning, competition

Steuerzahlverhalten quantifizieren

2021 ◽  
Vol 62 (2) ◽  
pp. 473-503
Author(s):  
Korinna Schönhärl
Keyword(s):  
Scientific Method ◽  
The Political ◽  
Tax Morale ◽  
Empirical Results ◽  
Measuring Methods ◽  
Ideal Image ◽  
Tax Payments ◽  
The Ideal ◽  
Payment Behaviour

Abstract From the 1880s scientists developed methods to measure (dishonest) tax payment behaviour. The first part of this article provides an overview of these methods and their development. The second part enquires into the function of measuring methods in the societal discourse about (honest) tax payments. The tax morale research of Günter Schmölders, carried out in the 1950s and 1960s, is then examined as a case study. The focus of interest is on the political advice that Schmölders gave, as based on his empirical results, and on the ideal image of the citizen and society which underlay the scientific method.

scholarly journals Pengaruh Perencanaan Pajak (Tax Planning) dan Penghindaran Pajak (Tax Avoidance) Terhadap Nilai Perusahaan

2021 ◽  
pp. 142-154
Author(s):  
Gea Delaya Tambahani ◽  
Tinneke E.M. Sumual ◽  
Cecilia Kewo
Keyword(s):  
Time Series ◽  
Cross Section ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Purposive Sampling

Penelititan ini bertujuan mengetahui dan menganalisis pengaruh Perencanaan Pajak (Tax Planning) dan Penghindaran Pajak (Tax Avoidance) terhadap Nilai Perusahaan pada perusahaan manufaktur sektor industri konsumsi subsektor makanan dan minuman yang terdaftar di Bursa Efek Indonesia Tahun 2017-2019. Menggunakan data sekunder dan  metode penelitian kuantitatif. Teknik analisis yang digunakan yaitu regresi data panel, gabungan time series dan cross section. Menggunakan aplikasi pengolahan data Eviews 10 untuk memperoleh gambaran yang menyeluruh mengenai hubungan antara antara variabel satu dengan variabel lainnya. Sampel yang digunakan sebanyak 16 perusahaan manufaktur sektor industri barang konsumsi subsektor makanan dan minuman selama 3 periode dari tahun 2017-2019  dengan purposive sampling sebagaiimetode pengambilan sampel. Hasillpenelitian menunjukkan bahwa Perencanaan Pajak (BTD) berpengaruh positif dan tidak signifikan terhadap nilai perusahaan (PBV) dan penghindaran Pajak (ETR) berpengaruh negatiffdan tidak signifikan terhadap nilai perusahaan.

scholarly journals Pengaruh Moral Etika Pajak Penghasilan Terhadap Tax Avoidance Dengan Sosio Demografi Sebagai Variabel Moderasi

2019 ◽  
Vol 1 (2) ◽  
pp. 814-825
Author(s):  
Weggy Oktya Dwitra ◽  
Henri Agustin ◽  
Erly Mulyani
Keyword(s):  
Income Tax ◽  
Tax Avoidance ◽  
Moderating Variables ◽  
The People ◽  
Moral Ethics ◽  
State Income ◽  
Independent Variable ◽  
Tax Payments ◽  
The Relationship ◽  
Regression Tests

Taxes are the main source of state income and reception, and are used to increase the prosperity and welfare of the people as a whole. The income tax collection system currently provides loopholes for taxpayers to prepare reports on tax payments to a minimum as long as they do not deviate from the applicable legislation.Important issues in taxation include awareness of paying taxes, tax paying behavior, obedience in paying taxes and tax avoidance. In connection with this research conducted aims to examine empirically about: (1) The moral-ethics effect of income tax on tax avoidance, and (2) Socio-demographic relations on the moral-ethical influence of income tax on tax avoidance. In connection with this research conducted aims to examine empirically about: (1) The moral-ethics effect of income tax on tax avoidance, and (2) Socio-demographic relations on the moral-ethical influence of income tax on tax avoidance. The data needed in this research is obtained from a questionnaire filled in by the income taxpayer sample registered at the KPPP Padang, which consists of 100 taxpayers. The collected data was analyzed using simple and multiple linear regression tests and the MRA (Moderating Regression Analysis) test for moderating variables. The research results obtained are (1) Moral-ethics of income tax affects the intention of personal taxpayers to carry out tax avoidance income tax. (2) Socio Demography does not moderate the relationship between moral-tax ethics and personal taxpayer intentions to carry out tax avoidance income taxes. (3) Moral-Ethics of Income Tax and Socio-Demographic influence together towards Tax Avoidance. In addition Socio Demography is proven only as an independent variable (predictor) in relation to Tax Avoidance.

scholarly journals Social penumbras predict political attitudes

2021 ◽  
Vol 118 (6) ◽  
pp. e2019375118
Author(s):  
Andrew Gelman ◽  
Yotam Margalit
Keyword(s):  
Political Attitudes ◽  
Panel Study ◽  
Social Groups ◽  
The Political ◽  
Systematic Analysis ◽  
Recent Immigrants ◽  
Political Clout ◽  
The Unemployed

To explain the political clout of different social groups, traditional accounts typically focus on the group’s size, resources, or commonality and intensity of its members’ interests. We contend that a group’s penumbra—the set of individuals who are personally familiar with people in that group—is another important explanatory factor that merits systematic analysis. To this end, we designed a panel study that allows us to learn about the characteristics of the penumbras of politically relevant groups such as gay people, the unemployed, or recent immigrants. Our study reveals major and systematic differences in the penumbras of various social groups, even ones of similar size. Moreover, we find evidence that entering a group’s penumbra is associated with a change in attitude on group-related policy questions. Taken together, our findings suggest that penumbras are pertinent for understanding variation in the political standing of different groups in society.

scholarly journals Financial Distress, Company Size, and Ownership to Tax Avoidance in the Listed Indonesia Stock Exchange Companies

2021 ◽  
Vol 8 (2) ◽  
Author(s):  
Purnamawati P
Keyword(s):  
Financial Distress ◽  
Manufacturing Industry ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Corporate Ownership ◽  
Financial Condition ◽  
Food And Beverage ◽  
Business Size ◽  
Tax Payments ◽  
The Right

This paper assesses the effect of financial distress, business size, and institutional ownership affect tax avoidances in the Food and Beverage Sub-Sector Manufacturing Industry Registered at Listed Indonesia Stock Exchange Companies, IDX in 2016-2020. With a quantitative analysis approach, this study finds that the financial distress affects tax avoidance due to the decline in financial condition as experienced by the company. The right of large companies has a tendency to maintain its image to the public so that they will try to comply with the terms of tax payments. Meanwhile, corporate ownership has no influence on tax avoidance due to pressure on owners to implement aggressive tax policies in order to increase profits.

scholarly journals The Use of International Tax Planning in Subsidiaries from the Financial and ICT Sectors in the Czech Republic

2021 ◽  
Vol 24 (1) ◽  
pp. 182-196
Author(s):  
Vít Jedlička
Keyword(s):  
Global Economy ◽  
Transfer Pricing ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Tax Burden ◽  
Effective Tax Rate ◽  
Tax Havens ◽  
Tax Rate ◽  
Dummy Variable ◽  
International Tax

Tax avoidance is an important element of management in the global economy. Managers use tax havens for reducing a company’s effective tax rate. The most common practices in international tax planning can be divided into three groups: loans and their related interest, royalties, and transfer pricing. The aim of this article is to find the determinants of the tax burden faced by foreign-owned subsidiaries. Therefore, a model was created for the tax burden, focusing on the special position of subsidiaries within international tax planning. For this purpose, taxes/outcomes was established as a new dependent variable. The panel data used include Czech companies that are owned by parent companies located in other EU countries. The model distinguishes EU tax havens from regular member states; sector dummy variables are also included. The regression model that was created did not confirm the assumed dependencies. Rather, it indicated other important determinants: profitability, the share of intangible assets, size, and the dummy variable for the ICT sector. Based on the regression results, the independent variables connected with known tax planning schemes have relatively low importance. The significance of these results can be seen in the subsequent conclusions. First of all, there is no difference between the subsidiaries’ tax burdens based on the parent company’s location. Corporations use international tax planning whether or not they are owned from a tax haven. The second significant conclusion indicates the importance of certain sectors and their attributes concerning the tax burden. Companies from the ICT sector are linked to a lower tax burden. On the other hand, the dependencies within the financial sector are not statistically significant. From the perspective of further research, it would be constructive to incorporate the subsidiary’s position within the group.

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