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

dc.contributor.author Liu, Xuepeng
dc.contributor.author Shi, Huimin
dc.contributor.author Ferrantino, Michael
dc.date.accessioned 2015-05-04T16:44:26Z
dc.date.available 2015-05-04T16:44:26Z
dc.date.issued 2015-04
dc.description.abstract Many 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.identifier http://documents.worldbank.org/curated/en/2015/04/24310280/tax-evasion-through-trade-intermediation-evidence-chinese-exporters
dc.identifier.uri http://hdl.handle.net/10986/21846
dc.language English
dc.language.iso en_US
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper;No. 7232
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject TAX INCENTIVES
dc.subject TARIFFS
dc.subject MICROSTRUCTURE
dc.subject SUBSTITUTION
dc.subject EQUIPMENT
dc.subject CHECKS
dc.subject ACCOUNTING
dc.subject PRODUCTION
dc.subject SALES
dc.subject INTEREST
dc.subject FINISHED PRODUCTS
dc.subject GUARANTEES
dc.subject EXPORT PERFORMANCE
dc.subject EXCHANGE
dc.subject LOCAL GOVERNMENTS
dc.subject LIQUIDITY
dc.subject TAX BENEFIT
dc.subject EXPORTS
dc.subject ELASTICITY
dc.subject EXPORTERS
dc.subject POLITICAL ECONOMY
dc.subject MARKET SIZE
dc.subject POSITIVE COEFFICIENT
dc.subject WELFARE
dc.subject HOMOGENEOUS GOODS
dc.subject INCENTIVES
dc.subject VARIABLES
dc.subject PRICING
dc.subject PRICE
dc.subject TAX
dc.subject INPUTS
dc.subject OWNERSHIP
dc.subject INCOME TAX
dc.subject PRODUCT QUALITY
dc.subject DUMPING
dc.subject DUMMY VARIABLE
dc.subject RESERVE
dc.subject INTERNATIONAL BANK
dc.subject DEVELOPING COUNTRY
dc.subject RETAIL
dc.subject BUDGET
dc.subject FOREIGN MARKETS
dc.subject SMALL BUSINESS
dc.subject INFLUENCE
dc.subject GLOBAL ECONOMY
dc.subject DEVELOPMENT ECONOMICS
dc.subject EXPORT GROWTH
dc.subject CONTRACT ENFORCEMENT
dc.subject RESERVE BANK
dc.subject FOREIGN MARKET
dc.subject REBATES
dc.subject REBATE
dc.subject CONTRACTS
dc.subject FIXED COSTS
dc.subject SURPLUS
dc.subject PRODUCTS
dc.subject TRADING
dc.subject GLOBALIZATION
dc.subject CRITERIA
dc.subject MARKETS
dc.subject WTO
dc.subject RETURN
dc.subject PUBLIC FINANCE
dc.subject INTERNATIONAL ECONOMICS
dc.subject PRODUCT
dc.subject ELASTICITY OF SUBSTITUTION
dc.subject INVENTORIES
dc.subject FINANCE
dc.subject TAXES
dc.subject EXPENDITURE
dc.subject DOUBLE TAXATION
dc.subject TRANSACTIONS
dc.subject EQUILIBRIUM ANALYSIS
dc.subject EQUITY
dc.subject TRANSACTION
dc.subject BUDGET CONSTRAINT
dc.subject FEDERAL RESERVE
dc.subject VALUE ADDED
dc.subject TAX RATE
dc.subject FEDERAL RESERVE BANK
dc.subject DOMESTIC MARKETS
dc.subject INTERNATIONAL TRADE
dc.subject OWNERSHIP STRUCTURE
dc.subject FINANCIAL CRISIS
dc.subject VALUE
dc.subject COMPETITIVENESS
dc.subject CREDIT
dc.subject MIDDLEMAN
dc.subject PRODUCT DIFFERENTIATION
dc.subject EXCHANGES
dc.subject EXPORT SHARES
dc.subject EXPECTED VALUE
dc.subject CONTRACT
dc.subject ECONOMIES OF SCOPE
dc.subject PRICE LEVEL
dc.subject CONSUMERS
dc.subject AGRICULTURE
dc.subject ISSUANCE
dc.subject PROPERTY
dc.subject TAX RATES
dc.subject AVERAGE PRICE
dc.subject TRADE REGIMES
dc.subject SHARES
dc.subject DEFAULT
dc.subject MARKET
dc.subject BENCHMARK
dc.subject TRADE LIBERALIZATION
dc.subject ECONOMICS
dc.subject EXPORTER
dc.subject COMPARATIVE ECONOMICS
dc.subject TAXATION
dc.subject TRADE
dc.subject GOODS
dc.subject THEORY
dc.subject GENERAL EQUILIBRIUM ANALYSIS
dc.subject GROWTH RATE
dc.subject BARTER
dc.subject INVESTMENT
dc.subject SHARE
dc.subject TARIFF
dc.subject PURCHASING
dc.subject MARKET MICROSTRUCTURE
dc.subject REVENUE
dc.subject CHECK
dc.subject WHOLESALERS
dc.subject INSTRUMENT
dc.subject PROFITS
dc.subject LIABILITIES
dc.subject TRADE REGIME
dc.subject EXPORT SHARE
dc.subject GUARANTEE
dc.subject PRICES
dc.subject ADVERSE SELECTION
dc.subject DEVELOPMENT POLICY
dc.subject MIDDLEMEN
dc.title Tax Evasion through Trade Intermediation en
dc.title.subtitle Evidence from Chinese Exporters en
dc.type Working Paper en
dc.type Document de travail fr
dc.type Documento de trabajo es
dspace.entity.type Publication
okr.date.disclosure 2015-04-06
okr.doctype Publications & Research
okr.doctype Publications & Research :: Policy Research Working Paper
okr.docurl http://documents.worldbank.org/curated/en/2015/04/24310280/tax-evasion-through-trade-intermediation-evidence-chinese-exporters
okr.globalpractice Trade and Competitiveness
okr.identifier.doi 10.1596/1813-9450-7232
okr.identifier.externaldocumentum 090224b082d5aa96_1_0
okr.identifier.internaldocumentum 24310280
okr.identifier.report WPS7232
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/04/06/090224b082d5aa96_1_0/Rendered/PDF/Tax0evasion0th0om0Chinese0exporters.pdf en
okr.region.administrative East Asia and Pacific
okr.region.country China
okr.topic International Economics and Trade :: Trade Policy
okr.topic Macroeconomics and Economic Growth :: Markets and Market Access
okr.topic Economic Theory Research
okr.topic Private Sector Development :: Emerging Markets
okr.topic Finance and Financial Sector Development :: Debt Markets
okr.unit Trade and Competitiveness Global Practice Group
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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