Research on corporate tax compliance, corporate governance and tax policies in China: From the international studies on the undersheltering puzzle

摘要

The undersheltering puzzle, proposed by Weisbach, has brought the severe challenge to the pervious researches in tax avoidance field. The solution of the puzzle has to broaden the pervious researches' framework and change the pervious hypotheses, which will bring a series of changes to tax avoidance researches such as the re-definition of corporate tax system, the introduction of governance variables and the adjustment of tax collection and administration system. This paper, based on the undersheltering puzzle, analyzes the latest international research in the motivation of corporate tax avoidance, tax avoidance participation, and the related influence to tax policies system. The main findings included that the international researches of corporate tax avoidance have been divided into two directions after the undersheltering puzzle proposed by Weisbach in the first place. The first research direction is represented by Graham and Tucker who think corporate tax avoidance is only the tool to reduce the tax burden and increase values. They have continued the traditional framework, and consider the problem of agency at the same time. The other research direction is represented by Dysai, Dyck and Wilson who think agency problems are the inherent problems of the company, which is bound to have a great impact on tax avoidance. Second, the introduction of corporate governance variables expands the perspective for corporate tax avoidance. Therefore, it is of great significance to research the motives and behaviors of corporate tax avoidance in the Chinese legal environment and institutional background. Finally, the whole corporate governance system will be improved, which can provide a certain degree of protection to help Chinese companies to develop steadily. At the same time, Analyses of Chinese corporate tax system arrangement and tax policies enforcement is proposed.