Explore The Theory Of Tax Compliance

The theory of tax compliance is an effective way to solve tax-losing problem. In China, the tax authorities puts forward the idea of tax compliance in the report"five-year strategic plan of tax administration from 2002 to 2006". This thesis is about the theory of tax compliance. Based on the practical situation in China, the key to achieving tax compliance is the rule of law in taxation field. Correctly using the theory of tax compliance is helpful in tax management.This thesis is made of four parts. Part 1 defines tax compliance and points out the meaning of studying tax compliance. In Part 2, the author analyses the information asymmetry which exits in taxation management field, that causes non-tax compliance according to the Game theory. As results, the author suggests that tax authority alleviates information asymmetry to improve tax compliance measurement. Part 3 discuses tax compliance from the psychological point of view. The most important Part 4 is about law connotation of tax compliance. There is a principal about law connotation, that is, the rights and obligations of citizens have a general requirement. As viewed from tax law connotation, taxpayer`s obligation criterion is the core of ratepaying compliance. For tax collectors , they should change traditional taxation notion. Social contract compact is fundamental reason why the state can impose a tax. It is important that the state alter the fact that tax administrators disobey tax law.