Title

Tax holidays and tax noncompliance : an empirical study of corporate tax audits in China's developing economy

Document Type

Journal article

Source Publication

The Accounting Review

Publication Date

10-1-2000

Volume

75

Issue

4

First Page

469

Last Page

484

Keywords

Tax holidays; tax noncompliance; corporate tax audits; developing economy; Foreign Investment Enterprises (FIEs), China

Abstract

Many developing economies use tax holidays to attract foreign investment by providing a limited period of tax exemptions and reductions for qualified investors. This paper investigates the effect of tax holidays on foreign investors' tax noncompliance behavior in China's developing economy. The results indicate that a company's tax-holiday position affects noncompliance. Companies are least compliant before a tax holiday, and most compliant while in a tax-exemption period.

DOI

10.2308/accr.2000.75.4.469

Print ISSN

00014826

E-ISSN

15587967

Publisher Statement

Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Recommended Citation

Chan, K. H., & Mo, P. L. L. (2000). Tax holidays and tax noncompliance: An empirical study of corporate tax audits in China's developing economy. The Accounting Review, 75(4), 469-484. doi: 10.2308/accr.2000.75.4.469