The Effect Evaluation Of The Taxation Reform On Tax Avoidance

With the establishment of the socialist market economy in our country and widen of the scale of the third industry,the Fenshuizhi reform began to produce defects and the corporate tax avoidance problem is becoming more and more serious.The taxpayers can use a variety of technique transfer of profits to evade tax,which not only causes huge loss of revenue,but also affects the environment of fair competition in the markets.To transform business tax into VAT(VAT reform)has been implemented since 2012,which is a key measure to perfect China's circulation tax system and even the entire national tax system and effectively solve the problem of double taxation.It can not only reduce the tax burden to enterprises,but also improve the construction of government tax collection and management.In order to investigate the impact of the implementation of the policy of VAT reform on corporate tax avoidance,this dissertation uses the financial data of A-share listed companies in Shanghai and Shenzhen from 2007 to 2015 as well as the data related to China's statistical yearbook to explore the correlation between the policy of VAT reform and corporate tax avoidance degree.Firstly,this dissertation will regard the tax policy as a natural experiment,because the VAT reform for companies is exogenous events,and the implementation of the policy is to gradually expand the scope of the pilot project by time and region.According to that,we can use the multi-point DID model to verify the relationship between VAT reform and the corporate tax avoidance.Secondly,because the government usually selects deliberately some pilot areas and enterprises rather than randomly,there may exists sample selection bias,so the PSM-DID method can eliminate the sample bias.And we will conduct a series of robustness tests.Then,from the perspective of tax collection and management intensity,this dissertation analyzes how the VAT reform restricts corporate tax avoidance through tax collection and management.Finally,this dissertation will analyze the heterogeneity based on the ownership structure,the region,the industry and the enterprise scale.In the end,we can come to the following conclusions:(1)The implementation of VAT reform can significantly curb enterprises' tax avoidance.Even if we eliminate central enterprises,municipalities,or shorten the time window,the conclusion is still valid.(2)From the perspective of tax collection and management,we can find that the policy of VAT reform can reduce corporate tax avoidance by strengthening the tax collection and management of each region and increasing the cost of corporate tax avoidance.In addition,the more intensive the tax collection and management,the less aggressive the corporate tax avoidance.(3)In the end,we conducted a sub-sample analysis of all enterprises and found that nonstate-owned enterprises,enterprises in eastern regions,enterprises belonging to the service industry and small enterprises had significantly reduced their tax avoidance after the implementation of the policy of VAT reform.