Geographic dispersion, tax administration and corporate tax burden: evidence from China
Abstract
Purpose
From the perspective of local government tax administration, the impact of geographic dispersion on the corporate tax burden is investigated in this paper.
Design/methodology/approach
Using unbalanced panel data with a sample of listed companies from 2003 to 2020 in China, this paper focuses on the effect of geographic dispersion on corporate tax burden and the mechanisms.
Findings
It is found that corporate tax burden is positively related to geographic dispersion. It is also found that geographic dispersion affects the corporate tax burden by increasing the effort of local government tax administration. In addition, the relation between geographic dispersion and corporate tax burden is more pronounced for local SOEs prior to the implementation of Golden Tax Project III and in cases where local governments face stronger financial pressure to obtain revenue.
Originality/value
This study has important implications for the promotion of the coordinated development of the regional economy, as well as the legalization, modernization and informatization of tax administration.
Keywords
Acknowledgements
Funding: We acknowledge The Ministry of Education Research of Social Sciences Youth Funded Projects (No.18YJC790187).
Citation
Xie, J., Wang, J. and Lei, T. (2024), "Geographic dispersion, tax administration and corporate tax burden: evidence from China", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-07-2023-1096
Publisher
:Emerald Publishing Limited
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