The Research On The Tax Compliance Evaluation System Of China

The research on Tax Compliance, in a narrow sense, is to study taxpayer'sfulfillment of liability required by tax law. In this research an important task isto study the Tax Compliance Evaluation System(TCES), which is an invaluableaid for tax authorities to assess taxpayer's compliance, to improve taxadministration and to optimize service. The TCES consists of evaluation subject,index and methodology. The establishment of a practical scientific evaluationindex system is the starting point, also a key point for the research on TaxCompliance. Evaluation system can help tax authorities to distinguish betweentaxpayers with high tax compliance and those with low tax compliance, so taxauthorities can adopt classification management mode with stronger point,which will improve the efficiency of tax administration. Besides, to the differentgroup of taxpayers distinguished by tax compliance, tax authorities can also usepositive and negative incentives to improve tax compliance of taxpayers, which will reduce the loss of tax revenue and enhance people's sense of taxation.We can see from many scholars' studies on China's tax compliance thatcurrent status of taxpayers' tax compliance in China is not optimistic and theamount of tax loss caused by direct and indirect tax noncompliance is horrible.However, the research of TCES in China is still at an initial stage and nosophisticated Evaluation System is currently applied to practical taxadministration. Therefore, the study on TCES is an application-oriented subjectof great practical significance in the field of public administration.This thesis is divided into six parts: the first chapter is an introduction tothe background, purpose and research methods of the selected topic. In ChapterII, the writer summarizes the theory of tax compliance, interprets the concept oftax compliance, and provides a brief consideration of domestic and internationaltax compliance theories. In Chapter III, the writer analyzes current status of taxcompliance in China and lists the tax noncompliance behaviors, the causes ofwhich are also analyzed. In the fourth Chapter, the writer sets out to establish aTCES, with the first step to introduce current philosophy of measurement on taxcompliance and points out that no TCES is currently applied to practical taxadministration. Secondly, the writer selectively analyzes the existing TaxpayingCredit Level Evaluation System, and points out the strengths and weaknesses ofit. Thirdly, the writer refers to the experience and practice on domestic andinternational tax compliance evaluation. Fourthly, on the basis of previousresearch, the writer uses the Delphi method and literature analysis to do the index selection and index factor selection; Analytic Hierarchy Process (AHP) toset index weight; motivation theories to design positive and negative incentivesof classification management, eventually forming a scientific and practicalTCES. The Final Chapter is the summary of the research done in the thesis.