Did China's Anti-Avoidance Rules Curb the Tax Avoidance of Foreign Enterprises?——Empirical Research Based on Industry Level Data
It is with practical significance to evaluate the role played by Chinese anti-avoidance rules in curbing tax avoidance behavior of foreign enterprises using quantitative methods.Based on China's industry level data,this paper uses the continuous difference-in-differences approach to evaluate the containment effect of China's anti-avoidance rules on tax avoidance of foreign enterprises since 2008.The results show that the reform of integration of income tax in 2008 significantly enhanced the tax avoidance motivation of foreign enterprises,and the anti-avoidance rules in force at the same time failed to curb their tax avoidance.The anti-avoidance rules that came into force in 2016 and 2017 have curbed the tax avoidance of foreign enterprises by using thin capitalization to a certain extent,while its impact on the tax avoidance of foreign enterprises by using commodity transfer pricing or intellectual property transactions has not been found.The international financial crisis and the trade friction between China and the United States that occurred during the sample period did not affect the above conclusion.Under the new development pattern,the profits of foreign enterprises in China will derive more from the local market,and the importance of improving the anti-avoidance rules will be further enhanced.We should continuously improve the relevant regulatory system on the basis of institutionalized quantitative policy effect evaluation.
anti-avoidance rulesforeign enterprisestax base erosionthin capitalization
万方数据
