Seminar (Dept. of Accounting)

Title：Lottery Invoice and Corporate Tax Avoidance

Speaker：Zeng cheng, Associate professor, The Hong Kong Polytechnic University

Time：10:00-11:30, December 10th, 2024 (Tuesday)

Venue：Room 1008, Mingde Business Building

Language：Chinese & English

ABSTRACT:

This study investigates China's tax administration strategy, focusing on the innovative implementation of lottery invoices to boost tax compliance. By encouraging consumers to request receipts through lottery-based incentives, the policy has notably elevated invoice usage. We find that following the adoption of the lottery invoice system, corporate tax avoidance significantly increases. Moreover, this effect intensifies with higher reward values, heightened financial constraints on firms, and enhanced governmental tax enforcement. These findings offer valuable insights into the impact of China's lottery invoice policy on tax compliance and revenue augmentation.