Research On The Effects Of Fiscal Transparency On Tax Compliance

As long as the government taxed the people,people must face the issue of tax compliance.In recent years,Apple Inc and Google Inc as the representative of the tax avoidance attracted the attention of the world.As the world's second largest economy,the problem of tax losses is equally serious in China.The prevalence of taxpayers' tax noncompliance behavior has become a cosmopolitan,historic problem that plagues the taxation of governments.Therefore,it is always a hot topic for researchers to probe into the influencing factors of tax compliance and to improve tax compliance by taking measures.Based on the fact that revenue and expenditure of government directly related to effect of governance and public satisfaction.People are increasingly concerned about the revenue and expenditure.This paper firstly studies on the relationship between the fiscal transparency and tax compliance from theoretical and empirical perspectives.Theoretically,this paper explains the relationship between fiscal transparency and taxpayer's tax compliance degree from three perspectives: right and obligation equivalence theory,principal-agent theory and tax-paying willingness.Empirically,this paper takes 30 provinces(municipalities and autonomous regions)of China as a sample,and establishes a random effect model to test the relationship between tax compliance and fiscal transparency.Theoretical analysis and empirical result show that there is a significant positive effect between the fiscal transparency and the tax compliance.It means that high fiscal transparency will improve tax compliance.At the same time,the empirical result drives the following two conclusions:(i)the higher the tax burden,the taxpayer's tax compliance is lower(ii)the higher the degree of economic development,the taxpayer's tax compliance is higher.Based on the above conclusions,this paper believes that it will be good for the government to disclose accurate and adequate fiscal information on time.Power must be exercised in the sunshine and the Government should strengthen the construction of fiscal transparency.