Study Of Compliance Taxpaying Of Individual Income Tax Based On Cumulative Prospect Theory

Tax compliance, also called Tax compliance taxpayer, means in accordance with Taxlaws and Tax policy, to correctly calculate the pay should pay Tax, and obey the Taxdepartments and Tax law enforcement personnel accords with legal norm managementbehavior.In addition, with the development of economy in our country, individual income taxhas play a more and more important role in the national economy. And the reform of thepersonal income tax has been thriving. In2011, in order to further reduce the tax burden onlow-income people, safeguard social fairness,the wage and salary expenses and deduct thestandard of individual income tax has increased from2000yuan to3500yuan. But ourcountry individual income tax erosion is serious, people there are very high tax does notcomply with the will, and even a lot of people think that tax evasion is glorious. This may becaused by increased the gap between rich and poor between east and west and urban and ruralin our country the taxpayers’ sense of injustice. So the taxpayers’ tax incentive and influencefactors is necessary, it will make us more targeted policy.It is based on the above background and purpose, this thesis makes a comprehensive andsystematic discussion on China’s personal income tax compliance question on the basis of thethe methods of mathematical analysis, economics, the empirical test empirica.The articlestructure is divided into six parts. The first part is introduction, mainly introduced this articleselected topic background, research purpose and significance, research status and research athome and abroad and the thesis structure and research method, and some innovation points;The second part, from the definition of the concept of tax compliance, discusses itsconnotation and denotation, and analyzes the impact on the economics and the economics ofthe variables, so as to know what factors were influencing people’s individual income taxcompliance, not including tax such as endogenous variables, including external environmentof social psychology and so on taxpayer; Part3, the system introduced in this papercumulative prospect theory model and content, as well as the deficiencies, especially giventhe general modeling process using the cumulative prospect theory; The fourth part, based on classic A-S model analysis framework, through the cumulative prospect theory is introducedto personally after payment of taxes in accordance with the law of tax revenue as referencepoint model, established the model of individual income tax compliance. Also usedmathematics and economics analysis method analysis with the relationship between theinfluencing factors, the tax rate, and degree of tax compliance and there is positivecorrelation between degree of tax compliance, negative correlation tax rates and taxcompliance; The fifth part, in order to verify the reliability of the conclusion, this paper, thefactors will affect the tax compliance boils down to: tax system characteristics, social fairness,tax collection and management system, social vogue, tax incentive mechanism five aspects,so as to design the questionnaire, from the perspective of empirical test again the model’sconclusion is reasonable. Sixth part, based on the results from the design of individual incometax system, tax collection and administration, tax culture construction three aspects morepertinent policy Suggestions are given.