Export Tax and Tariff Evasion: Evidence of Misinvoicing in China-New Zealand Trade

Kuntal Das, Laura Meriluoto and Amy Rice

Working Papers in Economics from University of Canterbury, Department of Economics and Finance

Abstract: The trade between New Zealand and China has grown rapidly after the signing of their free trade agreement, but it is difficult to gauge the exact growth in trade due to gross inconsistencies in the trade data provided by the two countries. We investigate the roles that tax and tariff evasion play in systematically explaining this discrepancy. We find that exports and imports are heavily underreported at the Chinese border to avoid having to pay China's value-added tax and import tariffs. We also find some evidence of underreporting of imports at the New Zealand border to avoid import tariffs.

Keywords: Trade misinvoicing; Export VAT rebate; Tax evasion; Tariff evasion (search for similar items in EconPapers)
JEL-codes: F14 F38 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2016-12-02
New Economics Papers: this item is included in nep-cna, nep-int, nep-iue and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:cbt:econwp:16/35

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