ABSTRACT
This chapter provides a review of relevant literature and development of hypotheses. Tax revenues, raised and then allocated to the benefit of society, underpin the functioning of all societies. An effective and efficient corporate taxation system will impact both economic growth prospects, and the ability to fund expenditures promoting social inclusivity and social equity. Globally, concerns have been raised over corporate income tax avoidance, especially amongst large companies. Tax planning has received significant attention as an important factor in corporate strategic management linking tax-related behaviour and financial activity. The traditional view of corporate tax avoidance argues that an increase in a firm's tax aggressiveness represents a wealth transfer from the government to the firm's shareholders. To empirically test the impact of ownership structure on tax planning strategies, Zheng and Han used a sample of private and state-controlled listed companies in China over the period 2002—2005.
