A Study On The Scale Of Tax Avoidance And Evasion Of China

The study on tax avoidance and evasion and the scale thereof are very important, both in theories and in practice. The scale of tax avoidance and evasion may be analyzed from two angles: i) Normative Analysis includes what tax avoidance and evasion and the scale of tax avoidance and evasion are, the factors that influence the scale of tax avoidance and evasion, and the measurement of the scale thereof, etc; ii) Empirical Analysis studies the overall scale of tax avoidance and evasion, the scale of each individual tax avoidance and evasion, and practical influence of each factor towards the avoidance and evasion of particular taxes. The research on the scale of tax avoidance and evasion helps evaluate the macro taxation burden, appropriately prevent tax avoidance and evasion, and effectively protect national tax safety in the campaign against international tax avoidance and evasion. For tax authorities, it becomes imperative to strengthen the study on the scale of tax avoidance and evasion so as to increase the ability to fight tax avoidance and evasion.This thesis comprises six chapters:Chapter One: Introduction. The chapter briefly goes over the selection of the topic and upon a summary of the relevant studies from domestic and abroad it identifies my research methodology, thinking pattern and road map and further highlights the novelty and imperfection of the thesis.Chapter Two: The Basic Concepts Regarding the Scale of Tax Avoidance and Evasion. The Chapter elaborates the concept and features of tax avoidance and evasion and compares the relevant concepts. It also examines the emergence and development of tax avoidance and evasion in China as well as defines the connotation and reach of the scale of tax avoidance and evasion, hoping to help understand the evolution of the scale of tax avoidance and evasion in China.Chapter Three: Factors Influencing the Scale of Tax Avoidance and Evasion. We divided the factors influencing the scale of tax avoidance and evasion into stimulatingfactors and repressing factors, each of which is assessed against the scale of tax avoidance and evasion.Chapter Four: Measurement of the Scale of Tax Avoidance and Evasion. In this chapter, we introduce four categories of measurement of the scale of tax avoidance and evasion, totaling 10 approaches. Most of these approaches measure the scale of tax avoidance and evasion by indirectly measuring the underground economy. Among them, Factor Assessment calculates the scale of tax avoidance and evasion based on the factors influencing the same, while Tax Potential Assessment directly measures the scale of tax avoidance and evasion of individual taxes. Among the ten approaches, Cash Flow Speed Assessment and Tax Potential Assessment seem to be more suitable for China's practice.Chapter Five: Empirical Analysis. Three different calculations of the scale of tax avoidance and evasion are inspected. First, we employ the Cash Flow Speed Assessment, a model we created, to measure the scale of tax avoidance and evasion caused by underground economy. Second, we calculate the scale of tax avoidance and evasion existing in the formal economy, thus uncovering the overall scale of tax avoidance and evasion in China. Third, we use the Tax Potential Assessment to measure the respective scales of tax avoidance and evasion with respect to some major taxes.Chapter Six: Conclusions and Suggestions. The last chapter summarizes the conclusion of the research and proposes several legislative, judicial and administrative policies with respect to the prevention of tax avoidance and evasion.