The Effect Of General Manager’s Independence On Tax Credit

The effectiveness of corporate tax credit integrity construction is closely related to the construction of the social credit system.In order to achieve a close connection between tax credit integrity and financing credit,alleviate the financing difficulties of some enterprises,and restrict the relevant tax behavior of various enterprises,the State Administration of Taxation issued a document entitled "Tax Credit Administrative Measures(Trial)".The document further elaborated and detailed the construction of tax credit integrity,clearly stipulated specific specifications and requirements in terms of taxpayer credit,and further explained the convenient conditions available to honest people and the disciplinary rules for those who break trust.In April 2015,the State Administration of Taxation carried out the first public listing of the tax-rated credit Alevel list.Companies rated as A-grade not only received preferential policies but also gained a good reputation for integrity.In the implementation of the policy,there are companies that are directly rated as D.In order to encourage and guide these companies to improve their awareness of tax integrity,the State Administration of Taxation issued in 2019 the 37 th "Announcement on Matters Relating to Tax Credit Repair",Indicating that companies that proactively correct their dishonesty can repair some of their credit losses.As a specific agent,the general manager of an enterprise determines the degree of importance the company attaches to the construction of tax credit.The independence of the general manager will inevitably have an impact on tax credit.Therefore,what kind of relationship exists between the independence of the general manager and the integrity of corporate taxation will be the focus of this article.In addition,the behavior of the general manager will be constrained by internal control within the company and externally monitored by the audit.Will these two play a moderating role in affecting the integrity of corporate taxation?This paper uses the data of A-share listed companies in Shanghai and Shenzhen from 2014 to 2018 as research samples,and divides the general manager’s independence into an integrated type,an dependent type and an independent type.On this basis,we add moderating variables-the effectiveness of internal control and the quality of external auditing,and explore the moderating effects of the two moderating variables on the relationship between general manager independence and tax credit.The study found that the independence of the general manager is positively related to tax credit.The general managers of different independence affect the company through their attitudes to the violation of the interests of small and medium shareholders by large shareholders and their own strengths in seeking abnormal economic interests and political rights.Taxes are honest.After introducing two adjustment variables,the effectiveness of internal control and the quality of external audit,the study found that the higher the effectiveness of internal control,the stronger the positive correlation between the independence of the general manager and tax credit;The higher the quality of the external audit,the stronger the positive correlation between the independence of the general manager and tax credit.Comprehensive research conclusions obtained from empirical tests and related theories,this article proposes specific policy suggestions for improving the company’s tax integrity from three aspects: the selection and training of general managers,the improvement and implementation of internal control systems,and the rationalization of audit costs:(1)Improve the construction of a tax credit system in accordance with the type of independence of the general manager;(2)Pay attention to the training of reserve talents and strengthen the construction of professional ethics;(3)Improve and implement internal control system and supervise the behavior of general manager;(4)Audit costs are rationalized to ensure the quality of external audits.The conclusion of this study is of great significance for the company to improve the general manager selection mechanism,strengthen internal control construction and external audit supervision.