Tax Compliance Costs Of Research

Compliance costs are the expenses that taxpayers have to pay in the legal activities obeying the tax laws. The size of tax compliance costs means taxpayers in tax-related matters for the money cost, time cost and psychological cost of the tax burden. Obviously, the higher the tax compliance costs to the taxpayers, the heavier the tax burden is. However, governments kept neglecting them due to their obscurity. The compliance costs in tax system were estimated by Haig firstly in 1934. After 1980s, the studies of compliance costs were performed by the governments of England and other countries, and compliance costs were considered during the policy-making of tax laws. The growing severity of tax evasion contributes to the concerns of compliance costs by these countries. According to the results of investigation and estimation on compliance costs, the mounts of compliance costs are so huge and cumulative to distort the economy greatly and encourage the incompliance activities of taxpayers. The problem of tax evasion is also faced by our country, but few studies are conducted in the associated filed of compliance costs.In this paper, I refer to foreign research results, analyze China's tax compliance costs and the reasons for the current situation, find out the basic way to reduce tax compliance costs and to improve the level of tax compliance.The full content of the major include the following:The first part is about the basic theory of tax compliance costs. This part of the tax compliance costs on the meaning and classification, as well as the composition of tax compliance costs content and assessment model.The second part is about the foreign tax compliance costs of research and analysis. The part introduces the compliance costs abroad findings and compliance cost measurement experience, as well as simplify the tax issue.The third part is about China's enterprises the basic tax compliance cost analysis. This part analyses our corporate tax compliance total cost of the content and composition of the realistic conditions and the current high tax compliance costs the main reasons, including the tax system and tax administration on the existing problems.The fourth part is about the minimizing of tax compliance costs of the policy options. This part is on the basis of tax compliance costs of our country and the reasons for the status, from the total receipts tax compliance and tax compliance with the total cost of two proposed lowering tax compliance costs some policy recommendations.