Evasion behaviors of exporters and importers: Evidence from the U.S.–China trade data discrepancy

Ferrantino, Michael J.; Liu, Xuepeng; Zhi, Wang

doi:10.1016/j.jinteco.2011.08.006

Cited by 106 publications

(94 citation statements)

References 26 publications

(30 reference statements)

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“…Business tax frauds can occur by falsely reporting to the authorities the values lower than actual ones for their transactions in order to avoid VAT. Michael et al's proposed method [4] found strong statistical evidence of under-reporting exports at the Chinese border to avoid paying VAT and evidence of tariff evasion at the U.S. border, in particular concerning related-party transactions. They also found indirect evidence of transfer pricing and evasion of Chinese capital controls.…”

Section: The State-of-art Tax Inspection Methods Used In Many Countrimentioning

confidence: 99%

“…ax revenue collection is considered a top priority in every national and regional jurisdiction [4], [10], [16], [17], [18], [19], and China is no different. It was reported by the Chinese government that the rate of loss of tax revenue in China is above 22%.…”

Section: Introductionmentioning

confidence: 99%

“…Through many years of data tracking and analysis of both domestic transactions inside China and its crossborder transactions, it has been shown that there is a new tendency for enterprises to plot together to evade tax in undetectable ways [18], [16], [4], [6], especially through legal-like-transactions. We call these kinds of transactions, Interest-affiliated transactions (IATs).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Mining Suspicious Tax Evasion Groups in Big Data

Tian

Lan

Chao

et al. 2016

IEEE Trans. Knowl. Data Eng.

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There is evidence that an increasing number of enterprises plot together to evade tax in an unperceived way. At the same time, the taxation information related data is a classic kind of big data. The issues challenge the effectiveness of traditional data mining-based tax evasion detection methods. To address this problem, we first investigate the classic tax evasion cases, and employ a graph-based method to characterize their property that describes two suspicious relationship trails with a same antecedent node behind an Interest Affiliated Transaction (IAT). Next, we propose a colored network-based model (CNBM) for characterizing economic behaviors, social relationships and the IATs between taxpayers, and generating a Taxpayer Interest Interacted Network (TPIIN). To accomplish the tax evasion detection task by discovering suspicious groups in a TPIIN, methods for building a patterns tree and matching component patterns are introduced and the completeness of the methods based on graph theory is presented. Then, we describe an experiment based on real data and a simulated network. The experimental results show that our proposed method greatly improves the efficiency of tax evasion detection, as well as provides a clear explanation of the tax evasion behaviors of taxpayer groups.

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Section: The State-of-art Tax Inspection Methods Used In Many Countrimentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Mining Suspicious Tax Evasion Groups in Big Data

Tian

Lan

Chao

et al. 2016

IEEE Trans. Knowl. Data Eng.

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show abstract

“…Buehn and Eichler (2011) empirically support this finding using an international panel of national aggregate mirror statistics. Ferrantino, Liu, and Wang (2012) find that the Chinese exporters under-invoice their exports in order to avoid value-added tax. Misreporting export or import data may also be a means of capital transfers.…”

Section: Introductionmentioning

confidence: 99%

Import surveillance and over-invoicing imports: the case of Turkey

Aktaş

Aldan

Ozmen

2014

Journal of Economic Policy Reform

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Turkey has been implementing import surveillance measures. A possible impact of that is the over-invoicing of imports to avoid surveillance procedures, as goods whose prices are under a predefined reference undergo surveillance. We extend mirror statistics methodology with panel data techniques using highly disaggregated data in order to test for such an impact. Our findings show that import figures of Turkey are inflated by about 2 billion USD in 2011, due to over-reporting induced by surveillance. This might also be the source of systematically positive net errors and omissions item in the balance of payments during the sample period.

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“…Nesse sentido, a literatura entende que há uma "manipulação" dos preços de transferência, a qual não ocorreria na ausência de tributação, causando o transporte de resultados de modo "artificial" ou ilegítimo. Essa estrutura de raciocínio é ampla e predominantemente adotada pelos pesquisadores do tema, citando, entre numerosos outros, Bartelsman & Beetsma (2003), Desai, Foley, & Hines (2006), Clausing (2006), Ferrantino, Liu, & Wang (2012) e Taylor & Richardson (2012).…”

Section: Contextualizaçãounclassified

Transfer pricing e income shifting: evidências de empresas abertas brasileiras

Rathke¹

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Evasion behaviors of exporters and importers: Evidence from the U.S.–China trade data discrepancy

Cited by 106 publications

References 26 publications

Mining Suspicious Tax Evasion Groups in Big Data

Mining Suspicious Tax Evasion Groups in Big Data

Import surveillance and over-invoicing imports: the case of Turkey

Transfer pricing e income shifting: evidências de empresas abertas brasileiras

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