The Effect of Corporate Income Tax Rate on Corporate Tax Avoidance

• Main Authors: Hung, Ting-Hsuan, 洪挺軒
• Other Authors: Lo, Kuang-Ta
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/m59q67

碩士 === 國立政治大學 === 財政學系 === 106 === In order to achieve fairness in the tax system, the national taxation bureau must spend a large of manpower and resources every year to check the business income tax returns data, it’s not to impose a forfeit for evasion company, but to prevent the company to evade income tax, increase tax compliance.Reviewing the study of tax evasion, tax datas about small and medium enterprises are not easy to obtain, so the inference is less general conclusion.In addition, the study of policy tools about tax rate are mostly theoretical analysis or personal empirical researches, therefore the conclusion of income tax rate to the company under-reported behaviors is not consistent.This study uses Taiwan’s business income tax returns data from 2009 to 2010 and estimates the effect of corporate income tax rate on corporate tax avoidance.Considering that endogenous relationship between the policy of the company and the tax rate, we use the two-stage least squares method with instrumental variable to get over the endogeneity bias.Finally, the results indicate that when the corporate income tax rate decreases by 1%, the under-reported income tax will be reduced by 1.03%. Therefore, the decline of under-reported behavior by company can not only make up for the loss of tax rate, but also reduce the distribution of the national taxation bureau in the audit resources and improve the efficiency of collection.