Research On Tax Morale Of High-Income Individuals In China

The current prevalence non-compliance behavior of high-income individuals is not only related to the management capabilities of the tax authorities, but also to the low level of the tax morale in high-income individuals in China. This reality has become one of the important problems in tax administration. Based on the survey results of the questionnaire about personal tax policy and administration conducted by the task force of National Natural Science Foundation of China"deterrence risks, incentive mechanism and tax noncompliance of high-income individuals", this article attempts to analyze the relationship between tax morale and tax compliance of high-income individuals, investigate the main factors of tax morale of high-income individuals, and search for solutions to improve the tax morale of the high-income.The main contents and results are as follows:1. We concluded from the survey data that in high-income group tax morale have a significant degree of influence on the degree of tax compliance when the income is under weak supervision of tax authority. The higher the degree of tax morale, the higher the degree of tax compliance. When the income is under tight supervision of tax authorities, tax morale don't have a significant degree of influence on the degree of tax compliance. In median-income and low-income group, in terms of both income categories, tax morale have a significant degree of influence on the degree of tax compliance.2. Using the corresponding data obtained by the questionnaires, we analysis which factors affect the tax morale of high-income individuals significantly. The factors which affect the tax morale significantly include: economic situation, management and service of tax authorities, tax complexity, supply of pubic goods of government, social tax environment and sense of tax ethics. The factors which do not affect the tax morale significantly include: age, education and gender. Among the factors influencing tax morale, the most important two factors are management and service of tax authorities and sense of tax ethics.3. In order to improve tax morale of high-income individuals, our government should take great effort on the following several aspects: improving the quality of tax administration and tax service, educating taxpayers, improving the supply of public goods, improving tax ethics of the public and nurturing tax environment.