 The effect of the general anti-avoidance rule on corporate tax avoidance in ChinaSidney C.M. Leung, Grant Richardson and Grantley Taylor Journal of Contemporary Accounting and Economics, 2019, vol. 15, issue 1, 105-117 Abstract: This study examines the effect of the general anti-avoidance rule (GAAR), introduced on January 1, 2008, to enforce corporate tax avoidance laws in China. Based on a sample of 517 Chinese firms over the 2006–2010 period (2585 firm-years), we find a reduction in tax avoidance following the implementation of the GAAR that appears to be the result of the new and stringent tax legislation and the consolidation of Chinese tax law. We also observe that the effects of firms’ engaging a Big Four auditor and directors with tax expertise in deterring tax avoidance significantly decreased following implementation of the GAAR. To all intents and purposes, it seems that the implementation of the GAAR in China has moderated the effects of and substituted for these particular monitoring and disciplining mechanisms. Keywords: General anti-avoidance rule (GAAR); Corporate tax avoidance; China (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jocaae:v:15:y:2019:i:1:p:105-117 DOI: 10.1016/j.jcae.2018.12.005 Access Statistics for this article Journal of Contemporary Accounting and Economics is currently edited by Agnes C.S. Cheng, P. Clarkson, F.A. Gul, Zoltan Matolcsy, Dan Simunic and Ben Srinidhi More articles in Journal of Contemporary Accounting and Economics from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.