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Tax holidays and tax noncompliance : an empirical study of corporate tax audits in China's developing economyThe Accounting Review
Document TypeJournal article
- Tax holidays; tax noncompliance; corporate tax audits; developing economy; Foreign Investment Enterprises (FIEs),
AbstractMany 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 InformationChan, 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