The Influence Of Tax Aggressive On Enterprise Business Strategy

Tax credit and financial subsidies are two major policy instruments that have been widely used by governments around the world to stimulate corporate sustainability.Since the reform and opening up,China gradually has transferred from the planned economic system to the market economy system,and the state has carried out a series of tax incentives to promote market economy transformation.Both theoretically and practically,the study of tax policy has proved that the tax incentives,which are as one of the forms of "government hand",play significant role in the process of economic development and system transformation.Enterprises,as the beneficiary of tax credit,also wish that the government's "aid hand" could help reduce the tax burden,improving their performance.However,the State Council No.62 document in 2014 About the clean-up tax incentives and other preferential policies and follow-up policies,proposed that all kinds of tax incentives should be cleaned up,indicating the state's tax policy has changed.We began to reflect on the normalization and effectiveness oftax incentives and whether interests that the "aid hand" bring to enterprises will become path dependence,resulting in the enterprise's unwillingness to make progress rather than transform?How does this path dependence affect the business strategy?What kind of business will tend to behave tax aggressiveness to obtain such preferential assistance?This paper strts with the business model transformation,as a breakthrough point theoretically and empirically.Under the domestic and foreign tax aggressive behavior research and corporate transformation research results,this paper tests the effect of tax aggressive behavior on business strategy considering China's unique tax background.The empirical results show that the tax aggressive behavior of enterprises can restrain the transformation of business model.It is not conducive to the plan,adjustment and transformation of business strategy.Non-state-owned enterprises behave more negativeness to the business model transformation when they are more sensitive to tax policies and so do the high-tech enterprises.In addition,tax aggressive behavior also hinders the.innovation activities of enterprises.