A Study On Tax Avoidance And Its Influencing Factors

Tax plays a very important role in the GDP’s distribution and redistribution,which can make a more reasonable allocation of resources, and stimulate a more rapidgrowth of economic. Enterprise exist in company with tax, thus comes with taxevasion and tax avoidance, which have been existence for a long time. In addition,with the rapid development of the economic, this phenomenon has become more andmore serious. Therefore, the actual tax burden and enterprise tax behavior havebecome the focus of the community. In China, the enterprise income tax is one of themost important taxes, which relations to the country’s fiscal and tax revenue, and candirectly affect the day-to-day cash flow and net profit. The purpose of this study is toanalyze whether enterprise’ actual tax burden has changed due to the new tax’simplementation in2008, meanwhile, to analyze the enterprise’ tax avoidanceinfluence factors, and hope to provide some valuable references and suggestions toenterprise and relevant government departments.Based on the previous theoretical research,216companies of Shanghai stockmarket and Shenzhen stock market were selected for the sample, whose financial datawere collected as the original data. After the processing of the original data, there hasa research from both theoretical and empirical aspect to analyze the factors of taxavoidance. More attention has been paid on analyze of regional structure, industrycategory, company scale, capital structure, investment decision and profitability’saffection, considering with the new tax’s implementation in2008. As well as the testsof actual tax burden’s intermediary effects.With the research, the main conclusions are as follows:(1) the enterprise actualtax burden has an obvious regional difference during2005-2008, which tends toreduce in the period2008-2010. In the contrast, the industry difference tends toexpand in2005-2010.(2) Both regional difference and industry difference on taxavoidance tend to increase in2006-2011, and industry difference changes moresignificantly.(3) Factors of company size and profitability both have significantcorrelation with tax avoidance, then factors of capital structure and investmentdecision have a growing effect to tax avoidance since2009.(4) In the examination ofthe intermediary effects, company scale, capital structure and profitability havesignificant effects. New tax policy is gradually playing a role, and tax avoidance isaffected by many factors.