Intangible Assets and Income Shifting : Evidences from Listed Companies in China

• Main Authors: SHU-CHEN LIN, 林淑貞
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/24447413512912331903

碩士 === 逢甲大學 === 財稅所 === 98 === With the difference among international tax systems, business conglomerates transfer the products and service within subsidiaries to precede the income shifting from high tax countries to low tax countries. The phenomenon of income shifting is more and more common worldwide. Formerly pricing transferring focused on the tangible assets, but owing to the globalization, pricing transferring of intangible assets and service has emerged gradually. With regard to mainland China, the range of pricing transferring extend to the providence and acceptance of service and the use and assignment of trade mark, patent right and fund. Followed by the development of knowledge economy and the accomplishment of socialism market economy, it is found from the documents of China that the trade of intangible assets had been motivated and it had become an important factor of pricing transferring. This study is an empirical research on the relationship between intangible assets and income shifting. This study collected the data from the consolidated financial statements of listed companies according to Taiwan Economic Journal Co., Ltd. from 2006 to 2008. The samples amount to 829 pieces and are categorized into 19 kinds of industries. The study utilized the Panel model to examine the relationship between income shifting and the target variables (including intangible assets, effective tax rate, fixed assets, company size, and debt ratio). The empirical results showed that regarding all the industries, it was presented positive correlation between the income shifting with INT, SIZE, and DEBT and there were reached 1% of significant difference among them. However, it was presented negative correlation between the income shifting with ETR and Fixed Assets, and there were reached 1% of significant difference among them. Concerning each industry, the correlation between income shifting and some specific variables (INT, ETR, Fixed Assets, and DEBT) may vary with the industry. However, it was presented positive correlation between the income shifting with SIZE in all the industries, except the textile, clothing and leather industry.