ANALYSIS THE POLITICAL AND ECONOMIC FACTORS OF ANTIINCOME TAX AVOIDANCE SYSTEM BETWEEN TAIWAN AND CHINA

Year 2012, Volume: 4 Issue: 1, 67 - 76, 01.06.2012

Chia Jen Chang Silu Zhang Tai Lung Chou

Abstract

This study found that the main reasons, which lead to a more stringent AntiIncome Tax Avoidance in China than in Taiwan, are as follows by analysis the differences of Cross-Strait (Taiwan and China) Anti-Income Tax Avoidance policies and the process of law regulation. First, the executive department in China has higher autonomy to regulate Anti-Income Tax Avoidance; whereas Taiwan’s regulations need to reflect citizens’ demand. Second, foreign-funded enterprises have less impact on Anti-Income Tax Avoidance in China; however, multinational enterprises in Taiwan have strong influence on it. Third, China has the large scale of domestic market, but Taiwan is a typical export-oriented economic system. Forth, most multinational enterprises in China are belonged to central government. Nevertheless, they are private-owned in Taiwan

Keywords

Anti-Income Tax Avoidance System, Transfer Pricing System, Cross-Strait (Taiwan and China)

References

• Chang, Chia-Jen (2008), Examination of Taiwan’s Fiscal Deficits from Fiscal Sociology, PhD Thesis, Department of Public Finance, National Chengchi University, Taiwan
• Chang, Chia-Jen(2011), The Discussion of the Formation Factors of Government’s Fiscal Deficit, Modern Public Finance, issue 2, pp. 86-95.
• Chen, Chieh(2005), The Harm of International Tax Avoidance and Anti-Tax Avoidance in China, Tax Research, issue 11, pp. 65-67.
• Lee, Bih-Hearn (1994), Post-industrial Transformation in Taiwan, Journal of Sun Yat- senism, Vol.12, pp. 245-282.
• Li, Hui-Ping(2010), The analysis rank of international competition by international institution for management department in 2010, the result of project in Research Division VI, 2010, Taiwan Institution of Economic Research
• Lin, Wan-I (2008), Population changes and countermeasures in Taiwan, Annual conference of Taiwan Social Welfare Academic Association, and an international academic seminar: “Suggestion and Innovation for Social Protection System in New Century: Changes across Time and Multinational Comparison”, Taiwan Social Welfare Academic Association (2008.05.23-24)
• Huang, Shin-Hsin, Kuo, Chien-Chung (2006), Q&A for Debate on 18% and Measures for Reasonable Reform, Policy Research Journal, Vol.6, pp. 19-50.
• Perkin, Harold(1996), The Third Revolution, Professional Elites in the Moder n World , London and New York, Routledge
• Sun, Chin(2002), The Analysis Factors of China’s FDI Location Choices, China Economic Quarterly, issue 3, pp. 687-698.
• Wang, Chi-Wei(2009), International Tax Avoidance and China’s Anti-Tax Avoidance, Master Thesis of global economic department in Jilin University, pp. 1-14.
• Wang, Hsiao-Sung & Hsieh, Shen Hsiang(2010), The Decision and Formation of Tax Rebate Policies, Economic Research, issue 10, pp.101-114.
• Yang, Chun-Hsueh(2002), The Way of Selecting an Entrepreneur in the State-owned enterprises by the Thoughts of Economy, China Industrial Economy, issue 7, pp.51-56.