Research On Enterprise Tax Compliance Behavior From The Perspective Of Institutional Environment

The problem of tax non-compliance is not a special issue that only exists in some countries or some stages,it is a difficult problem that the governments all over the world generally face.As an important micro individual in the economy,The improvement of enterprise's tax compliance is a boost to the growth of a country's fiscal revenue.With China's economic growth into the new normal,revenue growth is also slow,which makes the fiscal revenue and expenditure of local government more serious.Under the current financial situation,both to ensure that the rigidity of the financial expenditure and does not raise taxes to enterprises,how to improve the tax compliance of the enterprise becomes the realistic choice.The present literature is from the rate,audit probability and punishment to seek the means for improving tax compliance,but those means may be just a short-term effect,the long-term effects depends on local institutional environment.Because,the enterprise tax behavior is born in the local institutional environment.In order to achieve the profit maximization,enterprises will adjust their tax compliance degrees to adapt to the changes in external conditions.Therefore,the institutional environment should be an important factor to the tax compliance of enterprises.The overall transformation of China's economic and society and the institutional environment differences between regions provide a good background for the study of this paper.Therefore,this paper attempts to provide an explanation for the enterprise's tax compliance behavior from Institutional perspective,so as to point out the feasible path for the optimization of enterprise's tax behavior.The paper contains the following parts:the first section is the introduction.This part is the overall exposition on the theme of institutional environment and enterprise's tax compliance which contains the research background and research methods.The second part is the basic theory of tax compliance.We carry out the theory analysis from three aspects:the classical models of tax compliance,measurement methods of tax compliance and similarities and differences of research on the tax compliance.The third part is the empirical observation of enterprise tax compliance in China.We carry out the analysis from ownership types,regions and industry type which based on the micro data of China industrial enterprises;The fourth part is the study of institutional environment in China.And we give a detail description on the present characteristics of China's institutional environment,such as economics,politics and law.All of these are based on China's provincial macro data.The fifth part is the effect of institutional environment on enterprise's tax compliance.We mainly analyzes the economic system,political system,legal system.And we reveal the mechanism from tax system design,property right arrangement,fiscal decentralization,political centralization,collusion,taxation constitutionality and other multiple factors.The sixth part is the empirical test of the role of economic system on the behavior of enterprise's tax compliance.This research is mainly from the perspective of property rights.And the research results provide clues for the formulation of China's fiscal policy.The seventh part is the empirical test of the role of political system on the behavior of enterprise's tax compliance,mainly from the perspective of government corruption.The general and heterogeneity tests have a certain practical implications for China's tax collection and anti-corruption strategy.The eight part is the empirical test of the role of legal system on the enterprise's tax compliance.The findings provide the empirical evidence for China's taxation constitutionality.Finally,We give a summary for the full text.This part refine some important points and policy advice.At the same time,it also points out the insufficiency and the further research direction.Specifically,the main conclusions of this paper are as follows:First,the overall level of tax compliance of Chinese enterprises is still low,there is still room for improvement.From the empirical observation on the tax compliance degree of Chinese enterprises.First,the effective income tax rates of most industrial enterprises are less than,or even far below the statutory income tax rate.Secondly,vertical comparison,the effective tax rates for the majority of enterprises show a decreasing trend year by year.Finally,lateral comparison,in different types of ownership,private enterprise's effective tax rates is the highest,and foreign enterprise is the lowest.State-owned enterprise's effective tax rates is higher than foreign enterprise.In different regions,the effective tax rates in the eastern region is the highest,and lower in the central and western regions.In different industries,the effective tax rates in these industries such as tobacco,petroleum,printing and other traditional industries are relatively high,but like high technology industry and agricultural products processing industry are relatively low.Second,China's institutional environment is gradually improving,but showing the large regional differences.Economic characteristics,China's market level is speeding,but showing the large regional differences.The market level of eastern region is the highest,but the lowest in the western region,and the market level of eastern region is also far ahead central region and northeast region.Political characteristics,the number of China's corruption cases tends to decline,but showing the complex features.The first feature is the simultaneous presence of the rapid advance of the market and the high frequency of the corruption occurrence.The second feature is that there is no necessary link between the number of corruption cases and the level of economic development.Legal characteristics,the legal environment is gradually improving,but showing the large regional differences.The eastern region is the best,and the northeast region sub-optimal.The western region is the worst.The central area is slightly better than the western region,but both is lower than the national level.From the performance characteristics,the level of economic development is proportional to the legal environment.Third,enterprise's tax behavior is born in the local institutional environment.Economic system,From the perspective of tax system design,tax rates,tax policy changes and tax collection environment will affect the enterprise's tax behavior.From the perspective of property rights,when the private owns the vast majority of property rights,taxpayer's tax compliance will be relatively high.But,when the private does not own the vast majority of property rights,taxpayer's tax compliance intentions will reduce.Political system,local government behavior is important clues to enterprise's tax behavior.Enterprise's tax compliance intentions will reduce in these cases that the local government stretches out the grabbing hand,or the political promotion incentives are strong,or collusion.Legal system,the tax staff on the rule of man instead of rule of law will undermine the stability of production and investment for enterprise,and reduce enterprise's tax compliance willingness.Fourth,Tax cuts can improve the degree of tax compliance,and fee reduction has the same effect.The policy effect of fee reduction may be stronger.From the perspective of property rights,the paper draws the major conclusions as follows,higher effective income tax rate of enterprises is,lower the tax compliance is.Lighter off-taxation burden of enterprises is,higher the tax compliance is.Reducing the off-taxation of enterprises can weaken the negative impact that the raise of effective income tax rate brought to the tax compliance.The results show that the tax burden is an important cause of enterprise's tax non-compliance.The effect of fee reduction is stronger,not only increase the tax compliance of enterprises,but also adjust the relationship between tax rate changes and tax compliance.Fifth,the effectiveness of corruption on enterprise's tax compliance is conditional.So,we need to focus on the cases that corruption can play a significant role.From the perspective of corruption,the paper draws the major conclusions as follows,regional corruption has a negative relationship with enterprise's tax compliance.Further,by group testing,the paper finds that this negative relationship will be more obvious if the tax bureau is Local Tax Bureau,or the region's market level is lower,or the enterprise is private,or the fiscal pressure of local government is lighter,showing the heterogeneity.Sixth,both the National Tax Bureau and Local Tax Bureau,or the speed of the market process,good legal environment can significantly improve enterprise's tax behavior,and that will also raise the tax compliance degree of private enterprises and foreign-owned enterprises.From the perspective of law,the empirical research finds that good legal environment can significantly improve enterprise's tax behavior.Further,by group testing,the paper finds both the National Tax Bureau and Local Tax Bureau,good legal environment can significantly improve enterprise's tax behavior.But the positive relationship will be more obvious if the enterprise is private and foreign-owned,showing the ownership heterogeneity.For different market level,good legal environment can significantly improve enterprise's tax behavior,but actual effect will be better in the lower level of the market.