Research On China’s Personal Income Tax Compliance Issues And Countermeasyres Under The Background Of Digital Economy

In recent years,the development of the digital economy has greatly expanded the scale and variety of online economic transactions.Tax-related information on personal income tax has increased in an explosive manner,and the virtual and hidden characteristics of online economic transactions are easily used by individuals to conceal their real transaction information,which makes it more difficult for tax authorities to obtain tax-related information of personal tax payers and further expands the scope of personal tax non-compliance.This has brought huge challenges to the traditional personal tax collection and management in China.As a major influencing factor to improve the efficiency of tax collection and administration,the study of personal income tax compliance in the context of digital economy is of great significance to improve the efficiency of personal tax collection and administration in China.According to the existing literature,there is no systematic research on the issue of individual income tax compliance in the context of digital economy,and the proposed countermeasures are mostly based on the perspective of strengthening mandatory individual income tax compliance,while the countermeasures from the perspective of cooperative individual income tax compliance are rarely mentioned in the existing literature.Based on this,this paper has been studied.This paper firstly summarises the impact of the development characteristics of the digital economy on personal income tax collection and administration,the factors influencing tax compliance,and measures to improve tax compliance using the literature analysis method.It is found that the existing literature mainly focuses on analyzing the problems of individual income tax compliance under the background of digital economy from the perspective of individual tax collection and administration,and the measures to improve individual tax compliance mainly focus on strengthening mandatory tax compliance,while few papers focus on establishing a cooperative individual tax compliance system.Secondly,the data analysis method is used to measure the scale of personal tax leakage,the growth rate of personal tax penalty and the percentage of personal tax late payment in China from 2015 to 2021.The analysis of the measurement results reveals that China has a serious problem of personal tax non-compliance in the context of the digital economy.The causes of personal tax non-compliance are also analysed from the perspectives of both personal tax collection and tax payers.Then,a typical case of personal tax non-compliance of anchors in the live broadcast industry is introduced using the case study method.Through the analysis of the causes of tax non-compliance of anchors,loopholes in China’s personal tax collection and administration in the digital economy are identified,and a summary of improvement suggestions is given to pave the way for the policy suggestions to be made later.At the end of the article,the policy suggestions of constructing a blockchain personal tax collection and administration mechanism,establishing a trustworthy incentive mechanism for self-declaration of personal tax,improving the taxation policy of the digital economy,and improving the personal taxation knowledge system are put forward in conjunction with the improvement suggestions of the case.