Tax enforcement and corporate donations: evidence from Chinese ‘Golden Tax Phase III’

Using the implementation of “Golden Tax Phase III” as a quasi-natural experiment, we take difference-in-differences (DID) method to examine how changes in taxation technology affect firm donations. Specifically, has reduced donation level private enterprises (−21.6%). Moreover, treatment effect is particularly pronounced regions with low capacity and high tax avoidance. Additional tests show that enhanced enforcement decreases rent-seeking donations rather than squeezes out market-oriented donations, reduction not due deterioration cash flow capacity. Overall, these results suggest improvement will restrict behaviour regulate corporate social responsibility activities enterprises. This study only enriches relevant research on but also emphasises significant impact information infrastructure construction.