Labor Protection And Enterprise Tax Evasion

The "Labor Contract Law" is a labor protection policy inclined to the rights and interests of laborers,and its implementation has enhanced the labor protection intensity of employees.This paper attempts to explore the impact of this public policy from the perspective of corporate tax avoidance.Based on the quasi-natural experiment of the implementation of the "Labor Contract Law",takes the enterprise tax burden as the micro research subject,using the enterprise panel data of listed companies from 2003 to 2015 to construct a double difference model To explore the potential impact of labor protection on corporate tax evasion behavior,and to seek the intrinsic link between public policy implementation and corporate behavior.Theoretically,the strengthening of labor protection intensity increases the labor cost of enterprises to a certain extent,constrains the flexibility of enterprise employment,and thus increases the difficulty of enterprise production scheduling.Enterprises aiming at maximizing profits are faced with surging labor costs,and adopting tax avoidance to reduce tax costs to alleviate operating difficulties has become a possible path choice.The empirical results show that the increase in the intensity of labor protection aggravates the tax avoidance.In the robustness test,the parallel trend test was carried out first,and the results showed that the control group and the treatment group had a common time trend,satisfying the only precondition of double difference;then the policy implementation time was advanced to 2006 to carry out the placebo test,the results It is not significant,excluding the influence of other policy changes or random factors,and the placebo test is passed;after replacing the explained variables,controlling the company-level fixed effects,and replacing the labor intensity measure,the results are still stable;finally,the financial crisis is excluded.The results suggest that it is possible to underestimate the impact of labor protection on corporate tax avoidance.The regressions control time fixed effects,industry fixed effects,and regional fixed effects,and the research conclusions remain unchanged.Further,in the heterogeneity analysis,the group test is conducted from three aspects: the nature of enterprise property rights,the size of the enterprise,and the operating environment in which the enterprise is located.Large-scale enterprises and enterprises with poor operating environment.The research in this paper is beneficial to further understanding the role of labor protection in influencing corporate tax decision-making.At the same time,it provides suggestions for the government to use decision-making planning to promote economic development.The research conclusion points out that the government should fully consider the response mechanism of various economic entities to the policy when formulating policies to formulate differentiated policies.At the same time,strengthening tax collection and management,especially for enterprises with strong bargaining power,will help ensure the country’s tax security.