A Typology of Tax Compliance in Developing Economies : Empirical Evidence from China's Shoe Industry
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
Author(s)
Detail(s)
Original language | English |
---|---|
Pages (from-to) | 242-266 |
Journal / Publication | Law & Policy |
Volume | 41 |
Issue number | 2 |
Online published | 3 Apr 2019 |
Publication status | Published - Apr 2019 |
Externally published | Yes |
Link(s)
Abstract
Drawing on fieldwork investigations of shoe manufacturers in southeastern China, this article provides empirical evidence for understanding these business' taxpaying practices. We find that since the legitimacy of tax law is largely absent amongst business taxpayers, instrumental considerations dominate taxpayers' decisions to pay or not pay taxes. We then incorporate “structural opportunities for evasion” and “perceived costs of evasion” to develop a two‐by‐two matrix to understand the following types of behavior: aggressive evasion, obliged compliance, strategic compliance, and reciprocal compliance. We argue that the matrix explains why VAT (value added tax) fraud is widespread in China while voluntary compliance is rare. It also helps to illuminate compliance more generally in developing economies.
Research Area(s)
Citation Format(s)
A Typology of Tax Compliance in Developing Economies: Empirical Evidence from China's Shoe Industry. / He, Xin; XIAO, Huina.
In: Law & Policy, Vol. 41, No. 2, 04.2019, p. 242-266.
In: Law & Policy, Vol. 41, No. 2, 04.2019, p. 242-266.
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review