Factors Of Tax Compliance And Its Impact

Tax compliance intuitively reflects taxpayers’ extent of conscious tax payment,and can indirectly reflect level of implementation of tax laws and regulations. Taxcompliance can directly reflect effectiveness of implementation of tax laws,meanwhile, shortfall in tax implementation process can be found. Measurement of taxcompliance and determination of tax compliance’s influencing factors can be used toevaluate level of taxpayer’s credit and guide tax department’s routine work, which willbe conducive for strengthening management of tax department.In tax theory and practice, measurement of tax compliance is of great importance.Government Tax Department, in order to achieve highest capacity, alwaysdistinguishes taxpayers in accordance with level of tax compliance and managesdifferent taxpayers with different management strategies. Measurement of taxcompliance and determination of influencing factors are also beneficial for FinanceDepartment to discover a number of factors affecting taxpayers’ tax compliance,guide its work, and improve laws, policies and regulations, etc. and enhance itsoperational efficiency.Recently, a number of developed countries have launched in-depth investigation andresearch on tax compliance, while China’s attention and study for which only stay onsurface. China now has no authoritative department to measure tax compliance; andthere is almost no quantitative statistical study on tax compliance.The paper, with current situation of Internal Revenue as background, introducescourse of development, current situation and trends of Internal Revenue; arrives atimportance of revenue through proportion of tax revenue and GDP over years (taxbearing ratio), and proportion of tax revenue accounted for fiscal revenue, taxcompliance directly reflects effectiveness of tax implementation, and then importanceof tax compliance is worked out.Tax compliance of Guandu District of Kunming is obtained through statisticalanalysis on survey data of tax compliance of Guandu District of Kunming, and influence of different indicators on tax compliance is obtained; significant indicatorsof different indicators is determined through stepwise regression method, and thenmain influencing factors of tax compliance is obtained through minimum informationstandards.The paper has made meaningful discussions on main influencing factors of taxcompliance, provides certain model supports for measurement of tax compliance aswell as theoretical basis and reference for improvement of tax compliance.