Intergovernmental revenue relations, tax enforcement and tax shifting: evidence from China

Xiao, Chengrui

doi:10.1007/s10797-019-09546-9

Cited by 16 publications

(9 citation statements)

References 36 publications

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“…In 2002, the Chinese central government implemented income tax sharing reform, collected half of the revenue from corporate income tax (CIT), and considerably decreased the amount of local governments' tax revenue share. This reform put enormous fiscal pressure on local governments since CIT is the primary source of local revenue (Xiao, 2020). Concerns may arise on local governments intervening in energy markets in response to fiscal pressure.…”

Section: Resultsmentioning

confidence: 99%

The unintended energy efficiency gain from tax incentives for investment: Micro‐evidence from quasi‐natural experiments in China

Song,

Li,

Liu

et al. 2023

Review Development Economics

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In light of the economic recession in the post‐pandemic era, countries have implemented a wide array of fiscal stimulus measures as a means of addressing the prevailing economic challenges but often neglect to consider the consequences of these stimuli on the environment. Therefore, it is crucial for the government to take environmental considerations into economic stimulus packages, aiming to achieve a sustainable “green recovery.” Using China's value‐added tax (VAT) reform as a quasi‐natural experiment, we find that VAT incentives have significantly improved the firm's energy efficiency through factor substitution and technological progress, indicating that tax incentives are beneficial to economic stimulus and energy saving. In addition, we find that energy market distortions play a significant negative moderating role, which weakens energy efficiency gained from the VAT incentives. Furthermore, heterogeneity analysis shows that the improvement of energy efficiency is concentrated in non‐state, high‐capital intensity, and high financing‐dependent firms. According to our findings, policymakers should have a thorough understanding of the potential of tax incentives for investment as a policy tool for achieving a “green recovery” as long as the energy market is efficient.

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Section: Resultsmentioning

confidence: 99%

The unintended energy efficiency gain from tax incentives for investment: Micro‐evidence from quasi‐natural experiments in China

Song,

Li,

Liu

et al. 2023

Review Development Economics

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“…Additionally, the tax authorities can share information with other government departments such as the social security bureau, the industrial and commercial bureau, and the customs bureau. More specifically, the tax authorities can use the information declared by taxpayers to conduct verification checks on multiple platforms across various government branches to effectively identify the authenticity of tax-related information, thus alleviating the problem of information asymmetry between taxpayers and the tax authorities (Xiao, 2020).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Tax Administration Digitization and Corporate Tax Avoidance: A Quasi-Natural Experiment Based on the Golden Tax III Project in China

Su¹

2023

Preprint

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This paper contributes to the literature by exploring the governance effect of tax administration digitization on corporate tax avoidance. Using data from 2,032 firms publicly listed in China during 2010 and 2020, our paper is among the first to report that the development of digital technologies such as big data and cloud computing has a restraining effect on corporate tax avoidance behavior. Our study is based on the Golden Tax III project implemented by the Chinese government from 2013 to 2016 as a quasi-natural experiment. Our time-varying difference-in-differences (DID) model shows that the digitization of tax collection and management effectively reduces corporate tax avoidance behavior. Moreover, this impact is larger for private firms, firms in regions with low financial development, firms with low auditor quality, and firms with low internal control quality. Our results are robust to parallel trend tests, placebo tests for causal inference, alternative measures of tax avoidance, and other tax-related policy specifications. Our findings suggest that governments should continue to promote digitization of tax administration, create a fair business environment for the development of private enterprises, deepen market-oriented reform in regions with low financial development, and improve the internal control mechanisms of publicly listed firms. JEL Classification: H26; H32; G30

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“…Intergovernmental revenue is a type of local government revenue generated from transfers from the central government to local governments to finance local government operations. In this research, the authors used the following formula to compare total revenue as a way to measure intergovernmental revenue (Xiao, 2020…”

Section: Intergovernmental Revenuementioning

confidence: 99%

Determinants of the Quality of Local Government Financial Statements in Indonesia: Coercive Pressure Dominates

Arifin

Sanusi

Hidayah

2022

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Many financial statements of the Indonesian local government are still of concern due to the lack of disclosure, and not complying with standards and government regulations. This fact was pointed out in the poor audit results on the local government financial statements released by the Indonesian Supreme Audit Board (SAB). Using the perspective of institutional isomorphism theory, this study aimed to examine various potential factors that affect the quality of Indonesian local government financial statements, including the number of local parliamentarians, the number of civil servants, comparative studies, educational background of regional heads, and the level of urbanization. This study used a sample of 220 local governments in Indonesia taken in 2018. The logistic regression analysis showed that the number of civil servants and the number of local parliamentarians significantly affected the quality of Indonesian local government financial statements. This highlights the influence of coercive pressures on the quality of financial statements of the Indonesian local governments. These findings can serve as input for the Indonesian government in formulating public policies, particularly regarding improving the quality of local government financial statements.

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Intergovernmental revenue relations, tax enforcement and tax shifting: evidence from China

Cited by 16 publications

References 36 publications

The unintended energy efficiency gain from tax incentives for investment: Micro‐evidence from quasi‐natural experiments in China

The unintended energy efficiency gain from tax incentives for investment: Micro‐evidence from quasi‐natural experiments in China

Tax Administration Digitization and Corporate Tax Avoidance: A Quasi-Natural Experiment Based on the Golden Tax III Project in China

Determinants of the Quality of Local Government Financial Statements in Indonesia: Coercive Pressure Dominates

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