The Study Of Influence On Small Business Tax Collection Game Model By "Accounting Standards For Small Business"

Small business is an important force in our national economy and social development, which also makes a significant contribution to China’s tax industry. However, various issues emerging in the process of tax collection and management of small business are becoming increasingly obvious. The high tax compliance costs and low tax compliance degree affected the small business tax collection efficiency for the tax department.This paper analyzes tax compliance characteristics of small business. Specifically, the high cost of small business tax compliance, information asymmetry for both sides and lack of serious attention from tax department result in low tax compliance of small business. One of the reasons that result in the low tax compliance of small business is the hysteresis quality in accounting system and huge difference between small business accounting system and tax law. The Chinese Treasury Department issued the 《Accounting Standards for Small Business》 in2011, which took into account the small business information demanded by tax department and simplified accounting process via combination of small business characteristics. The issue of this principle largely eliminated the differences between accounting and tax law and led to positive influence of small business tax collection and management.This paper is based on the gambling model of tax collection and management. Taking advantage of cost-effectiveness researching approach, this paper studies decision behavior and equilibrium of small business taxpayer and tax department in the process of tax collection. By means of analyzing factors which can affect game equilibrium, this paper points out that issue of 《Accounting standards for Small Business》 can affect the cost of small business tax evasion, cost of tax inspection, the probability of being caught for small business tax evasion and probability of administrative reconsideration or successful rent-seeking of small business. All of these functions is able to reduce the probability of tax evasion, as well as the probability of tax inspection finally. Based on the analysis above, the paper comes to the conclusion that the issue of the principle is capable of enhancing tax compliance of small business and tax collection efficiency of tax department.Finally, considering the effect of principle on gambling model, this paper proposes some suggestions for optimizing tax collection in our country. And these suggestions might have theoretical significance on improving small business healthy development in our country.