Research On The Impact Of Business Environment On Corporate Tax Compliance

As China’s economic development goal shifted from high-speed growth to high-quality development,and a new stage of economic development began,the Chinese government attaches greater importance to improving the business environment.At the Party’s 20 th National Congress,the General Secretary Xi Jinping stressed the need to adhere to the people-centered development core,and also set clear goals and requirements for further optimizing the business environment.Tax authorities focus on the Party’s 20 major policies,in accordance with the requirements of optimizing the business environment,in view of various problems in the practice of tax collection and administration,strive to form a harmonious relationship between tax collection and payment,and build a new tax collection and administration mode with Chinese characteristics,so as to improve the sense of tax payment and happiness of taxpayers.Under the new collection mode,it is of great practical significance to improve tax compliance by optimizing the business environment.A good business environment can create conditions for the tax compliance of enterprises,which is related to the quality of enterprises’ living space and is the key to improve the tax compliance of enterprises.Only a good business environment can give enterprises a better space for development.By building a new relationship between government and business and constantly optimizing the business environment,it is conducive to reducing the tax burden of enterprises,stimulating the vitality of enterprises,and playing an important role in improving the tax compliance level of enterprises.Therefore,through theoretical and empirical studies on the action path of business environment on tax compliance and analysis of the influence mechanism between them,it can not only reduce the cost of tax payment for enterprises and improve the level of tax compliance for enterprises,but also further deepen the reform of the collection and management system and promote the high-quality development of the market economy.Based on the new public service theory,tax compliance theory,expected utility theory and prospect theory,this paper analyzes the influence mechanism and action path of the business environment on the tax compliance of enterprises from the theoretical level.Optimizing the business environment can provide enterprises with a fair and just legal environment,reduce the cost of tax compliance,improve the tax satisfaction of enterprises and improve their tax compliance level.On the basis of expounding the current situation of business environment and corporate tax compliance in China,using the relevant data of listed enterprises in the CSMAR and Marketization index report of Chinese provinces,the paper constructs a two-way fixed-effect model,conducts an in-depth study on the impact of business environment on corporate tax compliance,tests the robustness of empirical results,and further conducts heterogeneity analysis from two perspectives of regional and corporate life cycle.The findings are as follows:(1)The closer the relationship between government and market,the better the business environment of enterprises,and the higher the tax compliance level of enterprises.(2)After the implementation of the "Golden Tax" project,the improvement of tax services and collection and management methods of tax departments has optimized the business environment and significantly improved the level of tax compliance of enterprises.(3)By examining the impact of the introduction of optimized business environment policies in pilot cities on the level of corporate tax compliance,it is found that the introduction of optimized business environment policies in pilot cities can greatly improve corporate tax compliance.(4)In the heterogeneity analysis,the effect of business environment on corporate tax compliance is more obvious in the eastern and central regions.And for enterprises in different life cycles,the impact of business environment optimization on their tax compliance varies.Based on the empirical analysis,combined with the current situation and existing problems of the business environment in China,a series of policy suggestions were put forward to improve the awareness of the business environment,optimize tax service,implement tax preferential policies,reduce tax collection costs,develop differentiated tax strategies and so on to optimize the business environment and improve the tax compliance of enterprises.