Research On The Tax Compliance Behavior From Rationality To Reality

Tax loss has been the major problems of international tax authorities face. How to effectively promote tax compliance is a difficult problem which all countries confront with. In order to reveal the riddle of tax compliance,lots of painstaking and creative researches have been done. In China,the tax authorities puts forward the idea of tax compliance in the report "five-year strategic plan of tax administration from 2002 to 2006".This thesis is about the theory of tax compliance, which will provide some policy recommendations to our tax administration practices.First of all, This article describes the expected utility theory; then give the criticism of expected utility theory; Finally introduce the main theory of prospect theory.Secondly, the paper analyzes the impact of tax compliance factors, including the traditional A-S model :rate, fine rate, income, tax rates, however, regarded as completely rational ,and these factors as the hole reason, can not completely reveal the taxpayer's tax compliance with the essence of the phenomenon. Therefore, this article also describes the prospects for the theory of tax compliance on the influencing factors, the tax compliance costs for taxpayers to comply with the impact, as well as other influencing factors, such as tax factors, individual characteristics of the factors, tax moral considerations, fairness theory, the impact of factors, and tax services factor.Once again, we introduce the cost factor and establish a tax compliance model based on expected utility theory, then carried out a correlation analysis both in fixed compliance costs and ratio compliance costs. Fixed compliance cost cases, the taxpayers will be more inclined to choose not to comply with the act, while under the ratio compliance costs, the impact of tax compliance is uncertain, but in practice shows that tax compliance costs is impeding people to comply with .at the same time I also created a personal tax compliance model based on the prospect theory. Model shows that: there is no exact optimal to declare income, making the individual utility maximization, optimal declare amount D has positive correlation with punishment rates, loss of reputation, as well as the correlation coefficient of loss aversion .This paper also introduces the prospect theory,to study the company's tax compliance, respectively, from the manager's compensation system, the distribution of tax penalties, the level of corporate governance ,the company tax rate and the tax authorities of the auditing capacity, to explore the compliance of company .All of this are the core content of this paper.Finally, with the model conclusions and the status of China's tax compliance, many recommendations to improve tax compliance was given.