Research On The Impact Of Tax Tasks On Enterprise Innovation

In recent years,academic research has devoted a great deal of attention to the impact of tax mandates.However,existing studies have mainly assessed the impact of tax mandates on corporate tax burden,but not their impact on corporate innovation.Therefore,this paper attempts to study the impact of tax tasks on enterprise innovation from both theoretical and empirical aspects,and provide policy suggestions for better promoting the reform of tax collection system.In the theoretical analysis,this paper argues that there is both a "tax burden effect" and a "governance effect" on the impact of tax mandates on enterprise innovation."Tax burden effect" refers to the phenomenon that higher tax mandates increase tax administration,leading to an increase in the actual tax burden of micro-enterprises,which ultimately suppresses their innovation capacity;the "governance effect" refers to the fact that a tax mandate can effectively alleviate the principal-agent problem within enterprises and thus promote enterprise innovation.The "governance effect" means that the tax mandate can effectively alleviate the principal-agent problem within the enterprise and thus promote enterprise innovation.Since the relationship between the strength of the two effects is difficult to determine,this paper proposes hypothesis 1: the impact of tax mandates on firm innovation is uncertain.In addition,this paper also proposes a heterogeneity hypothesis by combining the intensity of tax administration,the high level of industry technology and the degree of market competition in the industry.Hypothesis 2: The tax mandate has a greater impact on firm innovation in areas with high tax administration intensity;Hypothesis 3: The tax mandate has a greater impact on firm innovation in low-tech industries.Hypothesis4: The tax mandate has a greater impact on innovation of firms in industries with high market competition.In the empirical test section,this paper constructs a fixed-effects model to test hypothesis 1 based on Chinese industrial enterprises and Chinese patent database from 2008-2013,and employs a series of robustness tests such as replacing the explanatory variables,excluding enterprises in special regions,excluding contemporaneous interference policies,and dealing with endogeneity to prove the robustness of the paper’s core findings.Further,this paper tests the two major mechanisms by which the tax mandate affects firm innovation,and tests heterogeneity in the intensity of tax collection,the high level of industry technology,and the degree of industry market competition.Based on theoretical and empirical studies,the main findings of this paper are as follows: first,in terms of the overall average effect,the tax mandate inhibits firm innovation.Second,in terms of the channel mechanism,the total tax burden of local enterprises is the main channel through which the tax mandate acts on enterprise innovation,and when enterprises face higher tax burden,the pressure of cash flow and external financing makes it difficult for enterprises to give higher financial support to R&D activities.Although the "governance effect" of the tax mandate on corporate innovation also promotes corporate innovation to some extent,the "governance effect" is not as strong as the "tax burden effect",thus the impact of high tax mandate on corporate innovation is negative.Third,tax mandates have a greater impact on innovation in areas with high tax administration intensity,low-tech industries,and industries with high market competition.Based on the above analysis,the policy insights derived from this paper are as follows: First,strengthen tax forecasting and reasonably set tax tasks.Second,optimize the assessment methods and objectives of tax collection and management.Third,enterprises should internally improve their internal governance mechanisms and fully release their innovative energy by combining local taxation tasks and tax collection and management levels.