Tax System, Tax Changes And Tax Compliance

China has started a new round of tax institution reform. The eleventh five-year planning has regulated that institutional reform should be deepened, and fiscal and tax institution reform should be advanced as well. Fiscal and tax system will be put into practice because this will contribute to the change of economic increasing way, the improvement of science and the saving of technology and resource.It is constructive to analyze the connections among tax institution, tax institution changes and tax compliance by the institutional changing theory of Institutional Economics. At present, the analysis of tax compliance emphasizes more on the management system of tax imposition which includes the structure set-up and management system. It is obvious that such analysis ignores the most primitive, basic and important factor of tax compliance—tax institution. As a result, there is little consideration of tax compliance when designing tax system. This essay analyzes the connections among tax institution, tax institution changes and tax compliance by the institutional changing theory of New Institutional Economics. It explores what influence tax institution has on tax compliance and how to design tax system in the process of tax institution changing so as to cut the cost and reduce the loss of tax, by way of positive analysis, standardized analysis and dynamic and static analysis.This essay mainly has three parts as following:The first part is about the analysis of tax institution and tax compliance. It definites tax institution and tax compliance, and analyzes the factors that influence tax compliance. What is more, it puts forward that tax institution is one of the basic factors that influence tax compliance.The second part is about the analysis of tax change and tax compliance. This part elaborates some basic theories of institution change and tax institution change. It also demonstrates that compliance cost is an important part of the exchanging cost of tax change. It concludes that tax compliance should be taken into account in the process of tax changing as it pushes the process of tax change.The third part is about the analysis of tax compliance in the new round of tax institutional reform. This part evaluates the present tax institution and outlines some disadvantages of it. It advocates that tax compliance should be considered in the reform process of tax institution, and comes up with some advice on the tax institution reform.