The Degree Of External Supervision, Internal Control And Corporate Tax Avoidance

All along,corporate tax avoidance is a widespread phenomenon in the course of economic development in various countries.It is a matter of great concern to tax collection and administration departments in various countries,and taxation avoidance of related issues has always been a research hotspot.With the intensified market competition,how to reduce costs and reduce the outflow of economic benefits has become an issue that has become more and more important for enterprises.Among them,tax planning has become one of the effective means for companies to reduce capital outflows and increase shareholder value.As the progress of China's tax law-related systems has lagged behind the speed of economic development,this has provided a space for tax planning for enterprises.On the other hand,with the globalization of the economy and the impact of the Internet industry,the business activities of enterprises tend to be diversified and complicated.As a result,corporate tax planning has become increasingly complex,and relatively stable tax laws are even more difficult to Make the specification.The degree of taxation and excitement of a company's taxation is affected by many factors from both inside and outside the company.Internal control is an important internal factor.The internal control of an enterprise combines the goals of efficiency and compliance in the enterprise's management and management activities.However,the impact on the degree of taxation and exacerbation of the process is to focus on the efficiency goal,or to focus more on the compliance goal.No conclusion yet.The external factors are mainly the tax collection strength and media supervision that companies face.The tax planning of enterprises usually involves many aspects of business management,from the company's strategic objectives and planning,to the daily production and management activities.If the taxation process of the company is too high,the company may face punishment from the tax administration department.Risk of damage and reputation.Because the tax collection and management departments can directly influence taxation and evasion process through the tax inspection and other taxation methods,media supervision can indirectly influence the taxation avoidance and exacerbation of the enterprise through the collection and transmission of information and reputation mechanism.However,at present,there is very little literature research media supervision on the impact of corporate taxation evasion process,therefore,the study of external supervision,internal control and corporate taxation evasion processhas important theoretical value and practical significance.This paper selects five years of data from 2012 to 2016,and examines the relationship between external supervision,internal control,and corporate tax avoidance process through a combination of standardized and empirical methods.The results of the study found that the internal control mechanism of Chinese companies is now more focused on operational efficiency goals.That is,when the quality of internal control is better,companies tend to adopt radical tax avoidance measures.In terms of external supervision,the strength of regional tax collection can effectively inhibit corporate taxation.To circumvent the intensive process,China's media supervision does not inhibit corporate taxation and evasion.On the contrary,the more media companies report,the higher the degree of tax avoidance and excitement,the higher the content.This paper finds that China's media supervision only has the degree of corporate taxation evasion.The role of the company's tax avoidance and excitement can not play a suppressive role.Further grouping research on the quality of internal controls revealed that when companies have a high-quality internal control system,tax collection and management departments are difficult to suppress their aggressive tax avoidance behavior,and it is even more difficult for the media to discover their radical tax avoidance behavior.The research results of this paper provide a new perspective for the tax collection and management of our country.It fully exploits the relevant information of taxation evasion process from the media reports,and enriches the related research of media supervision and corporate taxation evasion process.The tax collection and management department can extract information on the extent of corporate taxation evasion from the quality of media reports and the quality of internal control,and provide reference for the tax collection and administration of tax authorities.In addition,the research conclusions of this paper can provide direction for the formulation of internal control system policies.When the relevant departments formulate internal control policies,they should emphasize the compliance objectives of internal control and make the company's business activities more in line with legal norms.