Can the Fair Competition Review System Restrain Corporate Tax Avoidance
Fiscal and taxation policy is a common way for the government to intervene in the econo-my.Preferential tax policies have an important impact on fair market competition.Examining the fairness of preferential tax policies is a practical measure to implement the fair competition review system in the tax field.Based on the panel data of A-share listed companies in Shanghai and Shenz-hen from 2011 to 2021,the paper considers the implementation of the fair competition review sys-tem as a quasi-natural experiment,and uses the difference-in-difference model(DID)as an analytical tool to explore the impact of the fair competition review system on corporate tax avoidance in high administrative monopoly areas.The result shows that the fair competition review system can significantly restrain corporate tax avoidance in high administrative monopoly areas.The mechanism test shows that the fair competition review system can promote the neutrality of tax support and market competition,and thus reduce corporate tax avoidance.Further analysis shows that the inhibitory effect of fair competition review system on corporate tax avoidance is more obvi-ous in the samples with better local government accountability system,poor regional business envi-ronment,high local government tax competition and poor corporate internal governance.This paper enriches the research literature on the microeconomic consequences of administrative monopoly reg-ulation such as the fair competition review system and the influencing factors of corporate tax avoid-ance,which provides policy reference for the implementation of the fair competition review system.
Fair Competition ReviewCorporate Tax AvoidanceTax Support NeutralityMarket Competition Neutrality
万方数据
维普
