Research On The Relationship Between Bank Card Payment And Tax Compliance

In the context of tax reduction and fee reduction,fiscal sustainability will be affected to a certain extent.Therefore,it is meaningful to study tax compliance to increase tax revenue and ease fiscal pressure.This article mainly explores the relationship between the use of bank cards and personal income tax compliance.Based on the previous theory of tax compliance research,this paper analyzes how bank cards as income information carriers affect personal income tax compliance.Then,the paper compares the status quo of China's personal income tax income horizontally and vertically,and uses the income ability measurement algorithm to calculate the current situation of China's personal income tax revenue loss.Next,based on theoretical analysis and current situation analysis,this paper uses the micro-database of China Household Financial Survey published by Southwest University of Finance and Economics in 2016 to conduct empirical analysis.Firstly,the data in the database is used to construct the personal income tax compliance index.By constructing the Probit model,the paper analyzes the impact of the use of bank cards on personal income tax compliance,and also explores the factors affecting the personal income tax compliance mentioned by other scholars such as age,gender,marital status,risk preference,income,liabilities and assets.The results show that if a person has a bank card,the probability that the person will choose to comply with the tax will increase,which means that the use of the bank card increases the personal income tax compliance.Then,this paper uses whether to open mobile banking,whether to open online banking as a substitute variable of bank card,and to test the robustness of the model.The test results show that these variables will still improve the probability of taxpayers choosing tax compliance,indicating that the model regression results are robust.Next,the heterogeneity analysis of the model is carried out.The regression results show that the use of bank cards affects the personal income tax compliance in different regions and different groups,but it will increase the probability of taxpayers choosing tax compliance.The endogenous problem of the model is discussed.Whether the smartphone is used as a tool variable or not,the regression result is still the same as the previous result.At the same time,considering that self-employed households are more difficult to supervise,the impact of the use of bank cards on self-employed tax compliance is further studied in the empirical study.In order to further verify the reliability of the micro-positive results,this paper uses the macro data such as the tax loss rate calculated in the current situation analysis to demonstrate,and also concludes that bank card payment can improve tax compliance.Finally,based on the above theoretical analysis and empirical analysis,this paper puts forward relevant suggestions to promote the compliance of personal income tax in China.This includes strengthening the supervision of mobile payment instruments such as We Chat and Alipay based on the impact of bank card payments on tax compliance mechanisms to promote tax compliance.