Property Rights, The Difference Of The Regional Environmental Tax Planning With The Company

In China the concept of Tax Planning has been widely accepted and put into practicesince the1990s. Nowadays, tax planning as an important tax related behavior and financialactivity for taxpayer has become one of the key words of the enterprise strategicmanagement. Now more and more scholars pay close attention to and research tax planning.Though turnover tax is the main categories of taxes there is smaller tax planning space forthem because of its indirect character. While the tax burden of income tax is hard to bepassed on. The accounting process of income tax relate to both every link of enterprise’sactivity such as financing, investment, management and multiple aspects of financialaccounting. There is larger tax planning space for income tax. Therefore this paper takes theenterprise income tax as the object to research the tax planning behavior of the listedcompany. Enterprise tax planning behavior is influence by kinds of macro and micro factors.The effective tax rate (ETR) can revealed enterprise’s tax planning behavior to a certainextent. This paper takes the ETR as a measure of the enterprise tax planning behavior toresearch the relationship between ETR and property and regional environment differences.We have implemented new enterprise income tax law form1998. The rates, deductionstandard and referential policy have been unified, the new income tax rate has been ruledand the focus of the preferential tax policy has been turned from the district to the industry.All these factors provide a new macro environment to enterprise tax planning in a certainextent. This paper takes the listed company from2006to2010as research samples toobserve the change of ETR after the new income tax law implementation. And it providesthe evidence for government to make further policy.Using the experience of former researches, the paper discusses the nature of propertyright and regional disparity effect on the enterprise tax planning, with theoretical analysisand empirical analysis combined. Firstly, the paper divides the sample into state-ownedenterprise and private enterprise, on the basis of the economic status of the listedcompany’s real controllers, and then makes comparisons between their effective tax rates.Secondly, the research divides the state-owned enterprise into central company and localstate-owned enterprise, according to the real controllers are central government or local government, then make a further comparison between their effective tax rates. Meanwhile,take the marketization index as a standard, study the relationship between marketizationdegree and effective tax rate by empirical test.Through the study of this article, it comes to the following conclusions: Firstly, from2008and after, the annual average effective tax rate of enterprise income tax is obviouslyhigher than that before2008. Secondly, the effective tax rate of private enterprise is lowerthan the state-owned enterprise, in other words, compared with the state-owned enterprise,private enterprise pay more strength in tax planning. Thirdly, the effective tax rate of localstate-owned enterprise is higher than that of central company, that is to say, the localstate-owned enterprise suffers more constraints in tax planning compared with the centralenterprises. Fourthly, the effective tax rate is higher in the area where the marketizationdegree is high, that means a highly marketization region has a smaller space to make taxplanning.