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The Association Between Related-Party Transactions and Tax Planning

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Advances in Intelligent Systems and Computing

Part of the book series: Smart Innovation, Systems and Technologies ((SIST,volume 268))

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Abstract

Due to the emerging of anti-tax avoidance, the act of companies arranging tax avoidance is being examined. Related party transaction is complicated and nontransparent; therefore, companies often use it to undergo inappropriate interest arrangement to ease tax burden. This research examines the related party transactions of China public listed companies from 2007 to 2018 to study the relationship between related party transaction and tax planning. This research divides transactions into five types, total, sales, purchase, non-operating, and contingent. Research shows higher tax planning when companies adopt contingent transaction with other related enterprise. But the other research illustrates lower tax planning when companies adopt sales transaction with other related enterprise.

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Notes

  1. 1.

    SEC 2004b, subsection 229.400a.

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Author information

Authors and Affiliations

  1. Minjiang University, Fuzhou, China

    Wen-Jye Hung, Ya-Min Wang & Qi Luo

  2. Fu Jen Catholic University, New Taipei City, Taiwan

    Tsui-Lin Chiang

Authors
  1. Wen-Jye Hung
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  2. Tsui-Lin Chiang
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  3. Ya-Min Wang
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  4. Qi Luo
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Corresponding author

Correspondence to Ya-Min Wang .

Editor information

Editors and Affiliations

  1. Institute of Intelligent Media Technology, Communication, University of Zhejiang, Hangzhou City, China

    Jie-Fang Zhang

  2. College of Computer Science and Engineering, Shandong University of Science and Technology, Shandong, China

    Chien-Ming Chen

  3. College of Computer Science and Engineering, Shandong University of Science and Technology, Qingdao, Shandong, China

    Shu-Chuan Chu

  4. Department of Radio Communications and Video Technologies, Technical University of Sofia, Sofia, Bulgaria

    Roumen Kountchev

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© 2022 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.

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Hung, WJ., Chiang, TL., Wang, YM., Luo, Q. (2022). The Association Between Related-Party Transactions and Tax Planning. In: Zhang, JF., Chen, CM., Chu, SC., Kountchev, R. (eds) Advances in Intelligent Systems and Computing. Smart Innovation, Systems and Technologies, vol 268. Springer, Singapore. https://doi.org/10.1007/978-981-16-8048-9_7

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