A Research On Factors Affecting Tax Compliance In China

At present,China is implementing tax reform.The overall direction of the tax reform is to increase the proportion of direct taxes and reduce that of indirect taxes.These tax reforms will certainly increase the salience of Chinese tax system and increase residents' perception of tax burden.In the context of China's deepening tax reform,it is very meaningful to study how to improve residents' willingness to pay taxes and reduce the cost of tax reform.Recently,foreign scholors study how to improve the tax compliance level from the perspective of tax salience,and have obtained rich experimental evidence.The relationship between tax compliance and tax salience,however,has received very limited attention by domestic scholars.This paper,using tax salience theory,intends to systematically analyze the factors affecting tax compliance in China.The results will provide policy implications for the ongoing individual income tax reform and property tax reform.First,this dissertation introduces the general research framework and contributions,after briefly introducing the research background,theoretical significance and applicable value.Then this dissertation reviews the domestic and international research on the relationship between tax salience and residents' behaviors,especially the impact of tax salience on residents' tax compliance,which lays a theoretical foundation for the further research.Besides,based on micro survey data,this paper presents a descriptive analysis of the current status and differences of tax intrinsic cognition.Second,based on Chinese residents' perception of individual income tax system,tax audit rate and tax punishment,this dissertation examines the impact of salient information about individual income tax collection and management on residents' tax compliance willingness.The results show that,highly salient information on tax penalty,social norm as well as tax credit punishment will significantly improve the compliance willingness for individual income tax.These effects are significant for inviduals with different tax information capacity and information processing capability.Third,based on the perception of the initial tax burden,this dissertation analyzes the impact of Chinese residents' perception of tax burden on their compliance willingness for property tax.This dissertation finds that information of property tax reduction and individual income tax reduction can alleviate residents' perception of tax burden,and significantly improve residents' property tax compliance willingness.Furthermore,the heterogeneity analysis of residents with different property ownership finds that no property residents tend to the property tax exemption by the first suite.Residents with two or more houses support the property tax exemption by the per-capita area.For residents with one house,all the property tax reduction information can effectively enhance the property tax compliance willingness.It is worth to point out that the effect of tax reduction information of individual income tax on property tax compliance willingness is independent of the amout of residential property.Fourth,based on the public goods satisfaction and government trust of Chinese residents,this dissertation empirically analyzes the impact of residents' reciprocity perception on the property tax compliance willingness.This dissertation finds that the expenditure information on property tax revenue improves residents' property tax compliance,by altering residents' perception of the reciprocity feature of property tax.Furthermore,this dissertation finds that individuals' trust in government has a moderating effect on the relation between property tax expenditure and tax compliance willingness.The higher the trust of residents in the government,the more likely they are to increase their tax compliance willingness after learning the tax expenditure information.