The Effect Of Digital Tax Administration On The Overpay Of Corporate Executives

The report to the 20 th National Congress of the Communist Party of China clearly stressed the importance of achieving common prosperity for all the people,which is the core requirement of socialism with Chinese characteristics and a long-term historical process.To achieve common prosperity,we must first uphold and promote social equity and justice,strive to narrow the gap between the rich and the poor,and resolutely prevent polarization.Faced with this requirement,how to narrow the gap between the rich and the poor while resolutely preventing the manifestation of polarization has become an urgent problem to be solved.As an effective income adjustment tool,tax system can alleviate the contradiction of social unfair distribution and widen the gap between the rich and the poor.However,in the spring tide of tax reform and tax reduction in recent years,the adjustment dynamics of the personal income tax to the income distribution is reduced continuously,limiting its role in the income distribution.At the same time,high-income groups have both salary and high-yield property income,and they can achieve the purpose of tax avoidance by diversifying the mix of income sources.But our individual income tax adopts classification tax system,which cannot fully reflect taxpayers’ tax ability.In the process of personal income tax collection and management,salary income is easy to manage,but the high-income class can use loopholes to reduce their tax burden.In order to solve these problems,Chinese tax authorities have launched the "Golden Tax III" project,which greatly strengthens the collection and supervision capacity of the tax system through cutting-edge technologies such as big data and cloud computing.On this basis,whether the implementation of the "Golden Tax Phase III" project can play a positive role in the management of excess compensation of corporate executives is a problem worth further study.By selecting the financial statement data and corporate governance data of China’s A-share listed companies from 2009 to 2021,this paper selects the representative project of tax collection and administration digitization,"Golden Tax Phase III" project,and uses the multi-time point differential method for empirical analysis to evaluate the impact of tax collection and administration digitization on the excess compensation of corporate executives,and draws the following conclusions: The digitization of tax collection and administration has a significant inhibitory effect on the excess compensation of corporate executives,and it can restrain the excess compensation of senior executives by improving the information environment of enterprises,alleviating the agency problems of enterprises and enhancing the governance effect of the government’s tax collection and administration.Through heterogeneity analysis,this article further finds that the governance effect of the Golden Tax Project Phase III is more significant for companies with lower internal control quality.The paper elaborates on the pathway through which digital taxation collection and management play a governance role,expands the research on factors affecting executive excess compensation in companies,and provides a more comprehensive and clear understanding of the governance effect of the third phase of the Golden Tax Project.This provides useful reference for tax authorities to further promote the application of information technology in tax collection and management.