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Tax holidays and tax noncompliance : an empirical study of corporate tax audits in China's developing economy
The Accounting Review
  • Koon Hung CHAN, Lingnan University
  • Lai Lan, Phyllis MO, Hong Kong Polytechnic University
Document Type
Journal article
Publication Date
  • Tax holidays; tax noncompliance; corporate tax audits; developing economy; Foreign Investment Enterprises (FIEs),
  • China
Many developing economies use tax holidays to attract foreign investment by providing a limited period of tax exemptions and reductions for qualified investors. This paper investigates the effect of tax holidays on foreign investors' tax noncompliance behavior in China's developing economy. The results indicate that a company's tax-holiday position affects noncompliance. Companies are least compliant before a tax holiday, and most compliant while in a tax-exemption period.
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Citation Information
Chan, K. H., & Mo, P. L. L. (2000). Tax holidays and tax noncompliance: An empirical study of corporate tax audits in China's developing economy. The Accounting Review, 75(4), 469-484. doi: 10.2308/accr.2000.75.4.469