An Empirical Study on Corruption and Tax Compliance: Based on Time Series from 2000 to 2014 in China

Dan Cheng, Qingjia ZENG

Abstract


Since 18th China Communist Party’s National the new central government has adopted a “zero tolerance” policy towards corruption, aiming to keep the corruption in the cage within the system. The new policy awarded strong support from the public throughout the country. Will anti-corruption enhance the tax compliance level of taxpayers? This paper based on such a condition, by using the 2000-2014 time series data in China as samples, adopting multiple regression analysis to find out the empirical analysis of this problem. The empirical results show that government corruption is negatively correlated with the tax compliance degree of taxpayers, that is, the lower the corruption degree of a country, the higher the tax compliance level of taxpayers. This conclusion shows that government’s anti-corruption is conducive to the country’s fiscal revenue, and government anti-corruption should be sustained.


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Copyright (c) 2018 Dan Cheng, Qingjia ZENG