Customer Concentration、 Tax Enforcement And Tax Avoidance

Taxation is the compulsory enforcement of corporate profits by the use of power by the state.Although China has implemented taxation reforms many times and put emphasis on reducing the tax burden on enterprises and creating a good tax business environment,the tax burden is still enterprises’ main pain point.Therefore,tax evasion has undoubtedly become the most undeniable problem among the many problems exposed by enterprises.Compared with the illegal tax evasion method,reasonable tax avoidance is a very rational economic man behavior.In fact,the enterprise tax avoidance plan should consider "all participants".Taxation is the mandatory sharing of the government’s interest in the creation of enterprises,and the main customers,as important partners in the enterprise’s industrial chain relationship,have a self-evident impact on the creation of enterprise benefits.From this perspective,the main customers are the stakeholders of the enterprise in tax avoidance activities.Then,how does the important dimension of the distribution characteristics of the main customers-customer concentration-have an impact on the enterprise’s tax avoidance behavior? In addition,the government has the right to compulsorily share a quarter of the enterprise’s pre-tax profits,so the government can be regarded as a special type of shareholder.The government guarantees the steady growth of the national tax revenue by exercising shareholder rights.With its special powers and advantages,the tax department can verify the true business status of the enterprise from different sides.Tax enforcement as a specific behavior of the government’s compulsory taxation right,theoretically helps to suppress corporate tax avoidance activities.So,will tax enforcement further affect the tax avoidance behavior choices of enterprises with a centralized customer base? Therefore,it is particularly important to include the three levels of customer concentration,tax enforcement,and corporate tax avoidance into a unified analysis framework.Based on the review of relevant literature at home and abroad,this article takes the annual data of Chinese A-share listed companies from 2009 to 2018 as the research object and delves into The mechanism and effect of customer concentration on corporate tax avoidance,the regulatory effect of tax enforcement on the relationship between customer concentration and corporate tax avoidance,and the relationship between the three based on the nature of property rights and institutional investor holdings,the test results show:(1)the higher the concentration of customers,the higher the level of corporate tax avoidance;(2)The greater the intensity of tax enforcement in the area where the enterprise is located,the lower the degree of tax avoidance;(3)The tax enforcement will negatively regulate the positive correlation between customer concentration and corporate tax avoidance,which reflects the corporate governance role of tax enforcement;(4)Further examination revealed that the positive correlation between customer concentration and corporate tax avoidance is significantly present in the state-owned enterprise group,non-state-owned enterprise group,high institutional investor holding group and low institutional investor holding group,however,the negative adjustment effect of tax enforcement on the relationship between the two is only significant in the non-state-owned company group and the high-level group of institutional investors.The research conclusion of this paper reveals the external driving factors of corporate tax avoidance behavior from the perspective of customer concentration,not only for the tax supervision department to consider how to formulate and improve relevant anti-tax avoidance policies and to improve the listed company customers for the SFC The relevant provisions of information disclosure provide a reference for decision-making,and help listed companies and tax departments fully understand the significance of tax enforcement.