The Association between Related-Party Transactions and Tax Avoidance

• Main Authors: SHIANG-LING TAN, 譚湘陵
• Other Authors: Der-Fen Huang
• Format: Others
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/cnss73

碩士 === 國立東華大學 === 會計與財務碩士學位學程 === 105 === This paper explores the relationship between related party transactions and tax avoidance. Using a sample of listed firms from Taiwan Stock Exchange over the period 2003 to 2014. We employ a method developed by Chen and Tsai (2006), and measure the abnormal degree of related-party transactions based on Huang and Yang (2011). This paper uses effective tax rate and cash effective tax rate as proxies for tax avoidance, to investigate the impact of related-party transactions on the tax burden. These empirical results show that corporate tax avoidance behaviors are associated with related-party transactions. We find that the stronger of related-party transactions, the more likely it is to conduct tax avoidance and tax planning.