Digital Transformation Of Tax Administration And Corporate Tax Compliance

The "vigorous development of digital economy" is one of the important national strategies in China,and is also an important element of the 2035 Vision and the 14 th Five-Year Plan.Along with the development of digital economy,a variety of new business modes and new business models have emerged in the market,resulting in new tax issues such as tax base erosion and profit shifting,and new challenges in tax collection and administration.In order to cope with new taxation problems and improve China’s taxation governance capacity,taxation authorities have actively organized and formulated various measures to promote the digital transformation of tax collection and administration,and jointly built the Golden Tax III Project with relevant technical departments.Since the Golden Tax Phase III Project landed on the pilot site in 2013 to the launch of the national system in 2016,it is an important tool and means for taxation authorities to strengthen tax source governance and tax collection and management.On the occasion of the official launch of Golden Tax Phase IV,it is necessary to summarize the implementation effect of Golden Tax Phase III project,and it is also of certain research value to explore whether the application of Golden Tax Phase III has improved the tax compliance of Chinese enterprises.This paper firstly defines the concepts of digital transformation of tax administration and enterprise tax compliance,and puts forward five basic assumptions based on relevant theoretical analysis.Finally,we use the "quasi-natural experiment" of Golden Tax III project to establish a multi-period double difference model to analyze the impact of digital transformation of tax collection and administration on tax compliance of Chinese enterprises,so as to verify the research hypothesis and explore the policy effect of Golden Tax III on tax compliance of enterprises.In order to verify the stability of the baseline regression model,four robustness tests such as parallel trend test and placebo test are used successively;this paper also analyzes the heterogeneity of the samples by grouping them according to the nature of enterprises,whether or not they have four major audits,where they are located and the proportion of management shares,so as to be able to comprehensively identify the effect of Golden Tax III on enterprises’ tax compliance from multiple perspectives.In addition,the heterogeneity analysis reveals that non-state-owned listed companies,listed companies with higher quality external audits,listed companies in the eastern region and companies with smaller management shareholding are more significantly affected by the application of Golden Tax III.Based on the above conclusions,the following policy suggestions are put forward based on the actual problems: First,strengthen the deep exploration of tax-related data resources;Second,promote the construction of tax rule of law;Third,improve tax preferential policies;And fourth,consolidate the phased achievements of tax collection and administration reform.Through the above four policy suggestions in order to make certain contributions to how the digital transformation of tax collection and administration in China can be further developed.