Privatization Of State-owned Enterprise,Tax Administration And Income Tax Avoidance

There are many academical studies on the influence factors of enterprise income tax avoidance.There are many scholars to study this area combinating with enterprise property rights.However,limited by sample size,few articles will focusing on privatizations when they studied enterprise income tax evasion,and connecting with the intensity of tax collection and administration,further exploring the difference between state-owned enterprises and non-state-owned enterprises in the income tax evading degree.Based on 19869 state-owned sample companies in industrial enterprise database from 1998 to 2003,with the aid of the wave of reform in state-owned enterprises,this paper explore our country industrial enterprise income tax evading issues during the process of the privatization of state-owned enterprises.In this paper,we try to establish an empirical model to verify whether the change of property property in the reform process of state-owned enterprises and external tax supervision intensity make a difference on enterprise income tax avoidance.The empirical results show that:Fitst,in general,the privatization of state-owned enterprises can significantly improve the degree of corporate income tax evasion in the case of controlling other related variables.That is,the state-owned enterprises would increase the income tax evasion after privatization.Second,difference in tax administration intensity between regions will affect the income tax avoidance of sample enterprises.In the case of keeping other related variables changeless,the higher the tax revenue collection intensity,the lower the local enterprise income tax avoidance.Finally,the intensity of tax collection and administration is an important adjustment variable for the influence of privatization of state-owned enterprises on enterprise income tax avoidance.The empirical results show that during 1998 to 2003 in the reform of state-owned enterprises,in the case of keeping other related variables changeless,the higher the intensity of tax collection and administration,the lower influence of privatizations on income tax evading degree will be.In this way,the degree of influence of privatizations on income tax evading is different with the change of the intensity of tax collection and administration.In the eastern region,the tax administration intensity is generally in a low level,therefore,the privatization of state-owned enterprises in the eastern region has a positive effect on the avoidance of corporate income tax.On the other hand,in the central and western regions,the tax administration intensity are generally in a high level,therefore,the privatization of state-owned enterprises in the central and western regions has a negative effect on the avoidance of corporate income tax,or the effect is not significant.