Research On Tax Compliance Of Individual Income Tax From The Perspective Of Fiscal Transparency

The disclosure of government financial information can promote the individual income tax compliance.Top-down fiscal transparency will reduce the risk of principal agenda so as to ensure the efficiency of government expenditure.At the same time,it also protects the legal rights of taxpayers and improves the government’s image,which encourages taxpayers to compliance with tax laws.Large quantities of individual income taxpayers make tax administration difficult.Fiscal transparency should be made the best of to improve current situation.Firstly,the paper looks for the theoretical basis of the fiscal transparency and individual income tax compliance and observes its current status.Then using panel data of provincial urban residents from 2006 to 2011 and remuneration for personal services as the proxy variable,this paper establishes a model to empirically test the impact of fiscal transparency and individual income tax compliance.Next,the article uses income from property lease for robustness testing so as to improve the reliability of the result.Finally,in order to make up for the flaw of time ranges,the author uses the circumstantial evidence which is based on China’s underground economy from 2006 to 2016.The empirical result shows: fiscal transparency has a positive effect on the personal income tax compliance measured by the income from labor remuneration,and this result is not affected by the changes in tax items and their withholding methods.It means that the personal income tax compliance will definitely increase as the degree of openness of financial information increases.In view of this,in order to deepen the positive effect of fiscal transparency on tax compliance,firstly,government should insist the principle of “One-Stop” and “User-Friendly”.Secondly,they are enable to make sure the quality of the government budget information and enhance interaction between the government and the taxpayer.Finally,they also should promote the construction of financial information disclosure data network platform actively.