Research On The Impact Of Tax Credit Rating System On Corporate Tax Compliance

The taxation,as an important component of national fiscal revenue,plays a role in safeguarding the functioning of government’s duties,effectively allocating social resources and meeting people’s needs for a better life.The increase of tax revenue can provide more financial resources for the country,which is conducive to the country’s ability to invest in infrastructure construction,improve education and health,and enhance security.However,in the actual tax collection and management,taxpayers’ tax compliance is low.Therefore,it is particularly necessary to improve tax compliance to ensure the realization of tax revenue.In contrast to the traditional mandatory tax collection system,the flexible tax collection method-the tax credit rating system-is a more flexible tax collection method.It evaluates the taxpayer’s tax declaration,payment and tax burden performance to form a tax credit rating.This system is not mandatory,but is evaluated based on taxpayers’ behavior and has a certain degree of voluntariness.The tax credit rating system only publicizes A-level taxpayers to the society and implements incentive measures for them,aiming to use their motivating characteristics to encourage taxpayers to actively comply with tax laws and obligations and to improve tax compliance rates.This paper incorporates the tax credit rating system and corporate tax compliance into the same framework for theoretical analysis and empirical testing to study whether the tax credit rating system has the effect of improving corporate tax compliance.This paper sorts out the relevant literature at home and abroad,and defines the related concepts of tax credit and tax compliance based on the research background,and then sorts out the reputation theory,information asymmetry theory and pecking order financing theory.The theoretical analysis of the influence mechanism of tax credit rating system on tax compliance and the theoretical analysis of the mechanism of action based on financing constraints are carried out,and the research hypothesis is put forward.In addition,the development process of tax credit rating is introduced and the implementation status of China ’s tax credit rating system and the status quo of tax compliance of sample enterprises are analyzed.In the empirical study,treating the first disclosure of the list of A-grade taxpayers on the official website of the State Administration of Taxation in 2015 as a quasi-natural experiment,an empirical study on the impact of the tax credit rating system on corporate tax compliance was conducted using the DID model with Shanghai and Shenzhen A-share listed companies in China from 2009 to 2020 as the research object.The empirical results on the mechanism of influence suggest that the tax credit rating system can encourage A-level enterprises to improve their tax compliance level.According to the robustness test results of parallel trend test,replacement of explained variables,PSM-DID and placebo test,the empirical conclusion of the above influence mechanism is robust.The empirical results based on the mechanism of financing constraints show that tax credit rating can alleviate financing constraints and improve tax compliance.In addition,after heterogeneity,it is clear that tax credit ratings have a more pronounced policy effect on enterprises in areas with weaker tax administration and non-state enterprises than on enterprises subject to stronger tax administration and state-owned enterprises.Finally,policy suggestions are proposed based on the above analysis and research conclusions to improve China’s tax credit system,including improving the design and implementation of tax credit rating,increasing the degree of tax rating disclosure and guidance,differentiated management of enterprises.The research of this paper has the following significance: Firstly,the research scope of tax collection and management has been expanded.From the study of the impact of tax administration on corporate tax compliance,it is mainly focused on mandatory tax collection and management,and there are few studies on corporate tax compliance from the perspective of flexible tax collection and management of tax credit rating.From the perspective of flexible tax collection and management,this paper discusses its impact on corporate tax compliance,and supplements the existing research in the field of tax collection and management.Secondly,in this paper,tax credit rating and corporate tax compliance are studied in the same framework,and analyzes and examines the financing constraints as a mechanism.This proposed relevant policy suggestions,which provides ideas for the research of the mechanism of tax credit rating,enriches the economic effects of tax credit rating,and provides positive references for further improving the construction of tax credit system and encouraging honest tax payment by enterprises.Finally,this study deepened the theory of tax compliance and enriched the research on tax morality.