Publication:
Tax Evasion through Trade Intermediation: Evidence from Chinese Exporters

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dc.contributor.authorLiu, Xuepeng
dc.contributor.authorShi, Huimin
dc.contributor.authorFerrantino, Michael
dc.date.accessioned2015-05-04T16:44:26Z
dc.date.available2015-05-04T16:44:26Z
dc.date.issued2015-04
dc.description.abstractMany production firms use intermediary trading firms to export indirectly. This paper uses Chinese export data at the transaction level to investigate the tax evasion motive through indirect trade. The paper provides strong evidence that, under Chinas partial export value-added tax rebate policy, production firms can effectively evade value-added taxes by underreporting their selling prices to domestic intermediary trading firms, especially when they sell differentiated products. Even for a moderate level of underreporting, the revenue loss is close to one billion U.S. dollars. The paper also finds that such underreporting behavior through domestic intermediaries may be associated with cross-border evasion through underreporting export values to foreign partners. In addition, the results indicate that the evasion motive is stronger for larger transactions.en
dc.identifierhttp://documents.worldbank.org/curated/en/2015/04/24310280/tax-evasion-through-trade-intermediation-evidence-chinese-exporters
dc.identifier.doi10.1596/1813-9450-7232
dc.identifier.urihttps://hdl.handle.net/10986/21846
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 7232
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectTAX INCENTIVES
dc.subjectTARIFFS
dc.subjectMICROSTRUCTURE
dc.subjectSUBSTITUTION
dc.subjectEQUIPMENT
dc.subjectCHECKS
dc.subjectACCOUNTING
dc.subjectPRODUCTION
dc.subjectSALES
dc.subjectINTEREST
dc.subjectFINISHED PRODUCTS
dc.subjectGUARANTEES
dc.subjectEXPORT PERFORMANCE
dc.subjectEXCHANGE
dc.subjectLOCAL GOVERNMENTS
dc.subjectLIQUIDITY
dc.subjectTAX BENEFIT
dc.subjectEXPORTS
dc.subjectELASTICITY
dc.subjectEXPORTERS
dc.subjectPOLITICAL ECONOMY
dc.subjectMARKET SIZE
dc.subjectPOSITIVE COEFFICIENT
dc.subjectWELFARE
dc.subjectHOMOGENEOUS GOODS
dc.subjectINCENTIVES
dc.subjectVARIABLES
dc.subjectPRICING
dc.subjectPRICE
dc.subjectTAX
dc.subjectINPUTS
dc.subjectOWNERSHIP
dc.subjectINCOME TAX
dc.subjectPRODUCT QUALITY
dc.subjectDUMPING
dc.subjectDUMMY VARIABLE
dc.subjectRESERVE
dc.subjectINTERNATIONAL BANK
dc.subjectDEVELOPING COUNTRY
dc.subjectRETAIL
dc.subjectBUDGET
dc.subjectFOREIGN MARKETS
dc.subjectSMALL BUSINESS
dc.subjectINFLUENCE
dc.subjectGLOBAL ECONOMY
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectEXPORT GROWTH
dc.subjectCONTRACT ENFORCEMENT
dc.subjectRESERVE BANK
dc.subjectFOREIGN MARKET
dc.subjectREBATES
dc.subjectREBATE
dc.subjectCONTRACTS
dc.subjectFIXED COSTS
dc.subjectSURPLUS
dc.subjectPRODUCTS
dc.subjectTRADING
dc.subjectGLOBALIZATION
dc.subjectCRITERIA
dc.subjectMARKETS
dc.subjectWTO
dc.subjectRETURN
dc.subjectPUBLIC FINANCE
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectPRODUCT
dc.subjectELASTICITY OF SUBSTITUTION
dc.subjectINVENTORIES
dc.subjectFINANCE
dc.subjectTAXES
dc.subjectEXPENDITURE
dc.subjectDOUBLE TAXATION
dc.subjectTRANSACTIONS
dc.subjectEQUILIBRIUM ANALYSIS
dc.subjectEQUITY
dc.subjectTRANSACTION
dc.subjectBUDGET CONSTRAINT
dc.subjectFEDERAL RESERVE
dc.subjectVALUE ADDED
dc.subjectTAX RATE
dc.subjectFEDERAL RESERVE BANK
dc.subjectDOMESTIC MARKETS
dc.subjectINTERNATIONAL TRADE
dc.subjectOWNERSHIP STRUCTURE
dc.subjectFINANCIAL CRISIS
dc.subjectVALUE
dc.subjectCOMPETITIVENESS
dc.subjectCREDIT
dc.subjectMIDDLEMAN
dc.subjectPRODUCT DIFFERENTIATION
dc.subjectEXCHANGES
dc.subjectEXPORT SHARES
dc.subjectEXPECTED VALUE
dc.subjectCONTRACT
dc.subjectECONOMIES OF SCOPE
dc.subjectPRICE LEVEL
dc.subjectCONSUMERS
dc.subjectAGRICULTURE
dc.subjectISSUANCE
dc.subjectPROPERTY
dc.subjectTAX RATES
dc.subjectAVERAGE PRICE
dc.subjectTRADE REGIMES
dc.subjectSHARES
dc.subjectDEFAULT
dc.subjectMARKET
dc.subjectBENCHMARK
dc.subjectTRADE LIBERALIZATION
dc.subjectECONOMICS
dc.subjectEXPORTER
dc.subjectCOMPARATIVE ECONOMICS
dc.subjectTAXATION
dc.subjectTRADE
dc.subjectGOODS
dc.subjectTHEORY
dc.subjectGENERAL EQUILIBRIUM ANALYSIS
dc.subjectGROWTH RATE
dc.subjectBARTER
dc.subjectINVESTMENT
dc.subjectSHARE
dc.subjectTARIFF
dc.subjectPURCHASING
dc.subjectMARKET MICROSTRUCTURE
dc.subjectREVENUE
dc.subjectCHECK
dc.subjectWHOLESALERS
dc.subjectINSTRUMENT
dc.subjectPROFITS
dc.subjectLIABILITIES
dc.subjectTRADE REGIME
dc.subjectEXPORT SHARE
dc.subjectGUARANTEE
dc.subjectPRICES
dc.subjectADVERSE SELECTION
dc.subjectDEVELOPMENT POLICY
dc.subjectMIDDLEMEN
dc.titleTax Evasion through Trade Intermediationen
dc.title.subtitleEvidence from Chinese Exportersen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleTax Evasion through Trade Intermediation: Evidence from Chinese Exporters
okr.date.disclosure2015-04-06
okr.date.doiregistration2025-04-10T12:07:15.105782Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/2015/04/24310280/tax-evasion-through-trade-intermediation-evidence-chinese-exporters
okr.globalpracticeTrade and Competitiveness
okr.guid293961468186872213
okr.identifier.doi10.1596/1813-9450-7232
okr.identifier.externaldocumentum090224b082d5aa96_1_0
okr.identifier.internaldocumentum24310280
okr.identifier.reportWPS7232
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/04/06/090224b082d5aa96_1_0/Rendered/PDF/Tax0evasion0th0om0Chinese0exporters.pdfen
okr.region.administrativeEast Asia and Pacific
okr.region.countryChina
okr.topicInternational Economics and Trade::Trade Policy
okr.topicMacroeconomics and Economic Growth::Markets and Market Access
okr.topicEconomic Theory Research
okr.topicPrivate Sector Development::Emerging Markets
okr.topicFinance and Financial Sector Development::Debt Markets
okr.unitTrade and Competitiveness Global Practice Group
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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