Research On The Asymmetric Information Problems Of Tax Collection In D Brunch Of Dongguan Municipal Local Taxation Bureau

In tax collection and administration activities, the information publishers will hide and fabricate informations or behaviors. Asymmetric information problems between the taxpayers and publicans would produce problems such as the adverse selection and the moral hazard. In recent years, Chinese economic is developing rapidly, the number of taxpayers is increasing,market players are diverse and complex, and the mode of operation is changing daily.Taxpayers’ tax law consciousness is weak, tax administration is complex, the tax service and management of the taxation authority supervision does not reach the designated position, and asymmetric information problems between the taxpayers and publicans are really serious. The tax loss is huge, tax collection and administration cost is high, the collection efficiency is in a low level, and the tax compliance is low.Dongguan is a developing city in Guangdong province. D district is one of Dongguan’s downtowns. In D district, tax revenue is growing continuously, the taxpayer’s number is large,tax source management is difficult. With economic slowdown and structural tax cuts increasing, D brunch of Dongguan municipal local taxation bureau is strengthening tax collection and administration. But the tax collection and administration is restricted by the asymmetric information problems between the taxpayers and publicans, influencing on the effect of strong and district management.Take D brunch of Dongguan municipal local taxation bureau for example, firstly I analysis the status of D brunch in the tax collection and administration, and discover the asymmetric information problems are obvious and hinder the negative effects. The information asymmetric problems in tax collection and administration activities have three forms, including the information asymmetry between taxpayers and taxation bureau, between the taxation bureau and the government or other units, and between the taxation bureau and tax officials.Then analysis the adverse selection, moral hazard, the loss of tax, and the failure resource allocation caused by information asymmetry. Then, analysis the causes of information asymmetry on the management, including the taxation bureau centers on tax revenue too much, but ignores the infrastructure of collection quality. The taxation bureau pays not enough efforts in the tax-related information exchanging and sharing, processes anduses information not thoroughly, and the social application of tax information is in a low degree. The tax collection and administration technology systems’ s management functions are not strong enough. "Tube household" tax management model no longer meets the economic development, management effectiveness are in a low level. Tax propaganda becomes mere formality, tax guidance does not reach the designated position, which would cause taxpayers to ignore tax law unconsciously.Finally from the angle of management, I propose some methods to ease the asymmetric information problems, including reshaping the collection quality, strengthening the share and application of tax-related information, improving the technology system’s management function in tax collection and management, promoting the reform of tax collection, optimizing the tax propaganda and tax services. Above all, resolving the asymmetric information problems is to optimize the allocation of resources, reduce tax cost, improve the society’s compliance of tax law, and promote the progress of tax administration with law in our country.