Journal article
Domestic Income Shifting by Chinese Listed Firms
The Journal of the American Taxation Association, Vol.34(1), pp.1-29
03/22/2012
DOI: 10.2308/atax-10150
Abstract
To encourage economic development in specific regions and industries, the Chinese Central and local governments offer a series of corporate income tax incentives (tax exemptions, reduced tax rates, tax holidays, and tax refunds). In China, parent and subsidiary companies are consolidated for financial reporting, but not for tax purposes. We take advantage of a unique disclosure in the tax footnotes of Chinese listed firms to examine income shifting among consolidated group members in response to these incentives. We find that intangible-intensive groups ("firms''), and firms concerned with meeting minimum earnings thresholds to issue equity, shift greater amounts of income. We find no evidence that high concentrations of either Central or local government ownership affect the level of income shifting.
Details
- Title: Subtitle
- Domestic Income Shifting by Chinese Listed Firms
- Creators
- Terry Shevlin - University of WashingtonTanya Y. H. Tang - University of British ColumbiaRyan J. Wilson - University of Iowa
- Resource Type
- Journal article
- Publication Details
- The Journal of the American Taxation Association, Vol.34(1), pp.1-29
- Publisher
- Amer Accounting Assoc
- DOI
- 10.2308/atax-10150
- ISSN
- 0198-9073
- eISSN
- 1558-8017
- Number of pages
- 29
- Grant note
- Foster School
- Language
- English
- Date published
- 03/22/2012
- Academic Unit
- Accounting
- Record Identifier
- 9984380550102771
Metrics
4 Record Views