Tax Enforcement And Corporate Tax Compliance?

Because of the lack of clear restrictions on the discretion of tax personnel,it provides space for the collection and payment interaction between government and enterprises;The abuse of discretion has always been an obstacle to the standardization of tax collection and management.Since 2016,local and provincial tax authorities have actively cooperated with the policy of the IRS.Then tax authorities successively issued the discretion benchmark of tax administrative punishment.It will further strengthen the deterrence of tax collection and management.In particular,this is different from the previous efforts to strengthen tax collection and management by increasing audit or punishment,but improves the potential risk of tax avoidance and optimizes the external governance environment of enterprises.Therefore,this paper focuses on improving the discretion benchmark system of tax administrative punishment,and investigate the changes of enterprise tax compliance level.Based on the 2014-2020 Chinese a-share listed companies as the research object,we build a benchmark regression model to explore the impact of the introduction of discretionary benchmark documents on corporate tax compliance.The conclusions of this paper are as follows: First,after the introduction of the provincial tax administrative punishment discretion benchmark document,the tax compliance of listed companies has increased.Second,this policy can inhibit the self-interest behavior of agents by increasing the cost of tax avoidance and improving the level of governance.Third,the effect is more obvious in the enterprises that choose the four major accounting.Combined with the above evidence,this paper gives following conclusions:China should adhere to improving the tax collection and management system,implement the concept of government under the rule of law,and improve the tax collection and management ability of tax departments;We should also pay attention to the supervision,management and incentive of tax system personnel,improve professional ability,and implement performance reform;In addition,the tax authorities should pay attention to the dynamic practice of local tax collection and management,consciously refine and adjust the discretion benchmark system of tax administrative punishment.