The Impact of Internet Use on Corporate Tax Avoidance: Evidence from Chinese Enterprises. (17th May 2022)

• Record Type: Journal Article
• Authors: Lin, Gaoyi; Zhao, Yanyan; Liu, Wanmin; Zhou, Jianjun
• Other Names: El-Dessoky M. M. Academic Editor.
• Is Part Of: Complexity. Volume 2022(2022)
• Publication Date: 2022-05-17
• Subjects: Chaotic behavior in systems -- Periodicals; Complexity (Philosophy) -- Periodicals; 003
• DOI: 10.1155/2022/5638593
• Languages: English
• ISSNs: 1076-2787

Abstract

Abstract : Based on the data of Chinese industrial enterprises from 2004 to 2009, a fixed-effect model is adopted in this paper to analyze the effect and the mechanism of the enterprises using the Internet on tax avoidance. The result shows that using the Internet will produce the peer effect, which enables enterprises to learn tax avoidance strategies on the Internet and makes the degree of tax avoidance between enterprises and other enterprises in the same industry converge. At the same time, using the Internet has a network effect, and the more the enterprises access the Internet, the higher the degree of tax avoidance for enterprises is. In addition, the effect of the Internet on tax avoidance is influenced by the intensity of tax collection and the nature of enterprises. With a further examination, it has been found that enterprises not only acquire the two tax avoidance strategies of underreporting profits and underpaying taxes through the Internet but also master the planning strategy.