This study examined the impact of inquiry letters on corporate tax aggressiveness based on the special inquiry system in Chinese stock exchanges.It found that the receipt of inquiry letters significantly inhibited tax...This study examined the impact of inquiry letters on corporate tax aggressiveness based on the special inquiry system in Chinese stock exchanges.It found that the receipt of inquiry letters significantly inhibited tax aggressiveness.The channel through which inquiry letters worked involved a monitoring effect on related-party transactions.The disincentive effect of inquiry letters on corporate tax aggressiveness was mainly found in firms with overseas operations,low-quality of internal control,and weak tax enforcement.Examining the textual information in inquiry letters,the results show that more questions and the demand for a specific opinion from the auditor led to a greater disincentive effect.The level of detail in firms'reply letters weakened this disincentive effect.Finally,the disincentive effect of tax aggressiveness was more pronounced when inquiry letters pointed to tax-related issues.展开更多
One of the fundamental issues in developing countries is how to evolve tax policies that can generate sufficient revenue for government activities.Consequent upon the above,this study examined tax policies and plannin...One of the fundamental issues in developing countries is how to evolve tax policies that can generate sufficient revenue for government activities.Consequent upon the above,this study examined tax policies and planning in developing sub-Saharan African countries.It adopted table content analysis and descriptive statistics in its methodology.The study observed that aggressive tax planning which the Multi-National Corporations execute through royalty payment,interest payment,strategic transfer pricing and treaty shopping,among others,has caused countries around the globe huge revenue losses annually and has become a matter of serious concern to both the developed and developing economies.The implication of this is that achievement of objectives of tax policies and their reforms will remain a mirage in sub-Saharan African countries.The study concluded that the prevalence of illicit financial outflows in the form of tax evasion and avoidance in the guise of aggressive tax planning by multinational corporations,however,makes Africa’s tax policies worse.It was recommended that the Organization for Economic Corporation and Development,and the G-20 should involve developing countries in the Base Erosion and Profit Shifting project as they are the worst victims of these activities.展开更多
基金support from the National Natural Science Foundation of China (No.72272108).
文摘This study examined the impact of inquiry letters on corporate tax aggressiveness based on the special inquiry system in Chinese stock exchanges.It found that the receipt of inquiry letters significantly inhibited tax aggressiveness.The channel through which inquiry letters worked involved a monitoring effect on related-party transactions.The disincentive effect of inquiry letters on corporate tax aggressiveness was mainly found in firms with overseas operations,low-quality of internal control,and weak tax enforcement.Examining the textual information in inquiry letters,the results show that more questions and the demand for a specific opinion from the auditor led to a greater disincentive effect.The level of detail in firms'reply letters weakened this disincentive effect.Finally,the disincentive effect of tax aggressiveness was more pronounced when inquiry letters pointed to tax-related issues.
文摘One of the fundamental issues in developing countries is how to evolve tax policies that can generate sufficient revenue for government activities.Consequent upon the above,this study examined tax policies and planning in developing sub-Saharan African countries.It adopted table content analysis and descriptive statistics in its methodology.The study observed that aggressive tax planning which the Multi-National Corporations execute through royalty payment,interest payment,strategic transfer pricing and treaty shopping,among others,has caused countries around the globe huge revenue losses annually and has become a matter of serious concern to both the developed and developing economies.The implication of this is that achievement of objectives of tax policies and their reforms will remain a mirage in sub-Saharan African countries.The study concluded that the prevalence of illicit financial outflows in the form of tax evasion and avoidance in the guise of aggressive tax planning by multinational corporations,however,makes Africa’s tax policies worse.It was recommended that the Organization for Economic Corporation and Development,and the G-20 should involve developing countries in the Base Erosion and Profit Shifting project as they are the worst victims of these activities.
