I will test the hypothesis in this study based on the t-test results on the figure with unusually high frequency in tax evaders' financial statements. As mentioned above, the test sample will be used in a regression model to test whether the result of the first test is correct and persists when controls for firm characteristics associated with effective cash tax rates are included. More specifically, firm characteristics that have been found to be instrumental in corporate tax avoidance in previous research. The following regression model is estimated to verify the hypothesis expressed in this study: CASH ETRi,t = β0 + β1HIGH FREQi,t + β2ROAi, t + β3LEVi,t + β4NOLi,t + β5∆NOLi,t +β6FIi,t + β7PPEi,t + β8INTANGi,t + β9EQINCi,t + β10SIZEi,t-1 +β11MBi,t-1 +YearDummies + IndustryDummies + ɛIn this study I will use the cash effective tax rate (CASH ETR) as a proxy for avoidance corporate tax. Chen et al. (2010) use the effective tax rate as one of the measures of tax aggressiveness in their study. Another effective tax rate measure widely used in tax avoidance research is the GAAP effective tax rate. However, the GAAP effective tax rate reflects only permanent tax differences, while the CASH ETR reflects both temporary and permanent tax differences (Chen et al. 2010). Furthermore, the CASH ETR captures the tax benefits of employee stock options, whereas the GAAP effective tax rate does not (Dyreng et al. 2008). The CASH ETR also captures strategies used to defer taxes, whereas the GAAP effective tax rate does not (Hanlon and Heitzman 2010). The GAAP effective tax rate is also affected by estimate changes, while the CASH ETR is not. Therefore, Dyreng et al. (2008) conclude that t...... half of the paper ......3). Effective corporate tax rates depend on the effect of size, capital intensity, leverage and other factors. Journal of Accounting and Public Policy,1(2), 125-152.Thomas, J. K. (1989). Unusual patterns in reported earnings. Auditing, 773-787.Van Caneghem, T. (2002). Cognitive setpoint-induced gain management. TheBritish Accounting Review, 34(2), 167-178.Varian, Hal, 1972, Benford's Law (Letters to the editor), The American Statistician 26, 65.Wallace, W.A. (2002). Evaluate the quality of data used for benchmarking and decision making. Journal of Government Financial Management, 51(3), 16-23. Watrin, C., Struffert, R., & Ullmann, R. (2008). Benford's Law: A Tool for Selecting Tax Audit Targets?. Review of Management Sciences, 2(3), 219-237. Zimmerman, J. L. (1983). Taxes and company size. Journal of Accounting and Economics, 5, 119149.