Tax Audit System And Methods Of Research

This paper's name is A Study on System and Method of Tax Audit of China.Tax system and administration are tax research's important content. From different prospects, researchers have different view points accordingly. Tax compliance administration is a management mainly focused on taxpayers. The degree of tax compliance can reflect the level of tax administration in some degree. Tax audit is one of main content of tax administration and an effective tool for improving tax compliance degree. With the development of market economy of China, the scale of tax becomes larger and the benefits of market main body from rigidity to rigidity and phenomena of tax non-compliance more and more. The direct outcome of tax non-compliance includes tax loss, unjust income distribution, unfair market competing environment, etc. For purpose of the functions of raising fiscal revenue and regulating economy bringing into play effectively, taxation units must strengthen the measures of improving the degree of tax compliance, but tax audit is an effective tool of improving tax compliance.The study on tax audit has high value both for theory and for practice. From theory angle, a large amount of articles and monographs on tax compliance have been published in China. However, most of them introduce theory of western countries and carry out simple simulation. The level of application is just elementary and no significant innovation has been generated. Most of articles and monographs only refer to tax audit simply and has not given standard intension and extension for taxation audit definition. Nobody researches the system and method of tax audit of China by the numbers. In China the amount of articles and monographs on tax is less, which only research tax inspection, foreign tax audit and tax assessment individually, and tax audit referred just points to foreign tax audit. Tax inspection, foreign tax audit and tax assessment are similar to tax audit, but they have their rules and lacked uniform system of tax audit. Therefore, a study on system and method of tax audit of China is helpful to enrich and develop the theory of tax audit.For tax administration practice, the gap between current tax compliance status and desirable status in China is larger and the gap between current tax compliance status in China and status in western countries is also larger. The two gaps mean the tax risk is still high. Scientific and reasonable and effective tax system and method is the important content to achieve scientific, precise tax administration and effective measure to decrease the tax risk. Therefore tax audit need to be improved urgently in China, which is important tool to defend the tax noncompliance behavior, and the study on tax audit can establish the base of tax audit.This article has gained some innovat ions. Based on foreign and domesticrelated theory, considering the current practice of tax audit in China, this article stud i es the tax audit system and method, brings forward some feas ible suggestions of tax audit, and fills up the blank of systematic research in this field in China. The innovations include as follows:Firstly, conforming tax inspection, foreign tax audit and tax assessment and unifying the framework of tax audit. Thereinto imposing interest on tax owed and amercing different amount of penalty according to the manner of throw daylight on himself of certain misfeasor and some evaluation indexes all can supplement the tax audit system availably. Secondly, by modern information technology developing the tax audit technology of China. In this paper Standard Audit File-Tax of China, the fashion of communicating information safely between tax audit subject and tax audit object, Internet Search Tools, the data-oriented approach and indirect income measurement techniques all are the tools and methods lacked by China currently. Thirdly, researching audit for E-business, and making suggestions for taxation units to develop this aspect. Finally, adjusting non-zero-total game model by adding psychological cost to the cost of tax evasion of taxpayers, based on prospect theory. In addition, those audit factors else in tax audit system and method are optimized in different degrees and the definition for effective and efficient tax audit is put forwards.This article uses the economics methods to study the tax audit, which include Marxist philosophy method, the method of combining the theory with practice, comparison analysis method, systematic analysis method, cost-benefit analysis method, game theory method and the method of combining criterion analysis with demonstration analysis.The thinking route of this paper is using international experience for reference, from optimizing the system and method of tax audit conforming tax inspection, foreign tax audit and tax assessment, constructing the system framework of tax audit of China, innovating the method of tax audit and realizing effective and efficient tax audit.The main content of this paper includes as follows. This paper is divided five chapters. The first chapter is exordium, which includes the background and significance of subject choice, literature review of inside and outside of China, basic concepts'discriminating, tax audit's limiting, study method, research thinking route and content, innovation and the research orientation of next step.The second chapter is the main theory basis, which includes tax principle, the concept, types, influencing factors and risk of tax compliance. Tax compliance model indicates the important role of tax audit in tax compliance. Audit assumption is the precondition of audit, and is relevant to logic tightly. Audit risk assessment is involved in audit planning, and audit professional judgement procedure is audit process. Several economic theories are the reference points of institution design.The third chapter is the actuality and problems, which includes analyzing the actuality of tax audit of China (tax inspection, foreign tax audit and tax assessment), finding out the existent problems of tax audit's system and method, and pointing out effective and efficient tax audit is the fundamental way to solve these problem, and this work should start with constructing tax audit system and innovating tax audit method.The fourth chapter is using foreign experience for reference, which includes with tax audit flow as main route, analyzing some tax audit elements such as case selection ways, audit information, audit tools, audit ways, audit organizing and managing, and ascertaining the foreign experience that can be used for reference and needed by us.The fifth chapter is how to construct the tax audit system and how to innovate tax audit method, which includes bring forward the guidance thinking and principle, constructing scientific and reasonable tax audit system framework and innovating tax audit method according to tax audit factors. By tax inspection to some company in constructing industry, validates part of tax audit system and method is valid.The main conclusion of this article is as follows. The tax audit of China should absorbs foreign tax audit advanced experience, develop the useful and discard the useless of current tax audit system and method, implement tax strategy management, base on cooperation of taxation unit and taxpayer, by the research about risk theory, case selection and audit technology, punishment and imposing interest improve scientific and reasonable tax audit framework suitable to China's situation. Then we can realize effective and efficient tax audit and enhance the degree of tax compliance.