Abstract

The National Tax Service started providing assistance services for corporate tax reporting in march 2016. This service was introduced for the purpose of further strengthening assistance services for corporate tax reporting. In this study, we examine the effect of assistance service for corporate tax reporting on the tax compliance. This study analyze the effect of assistance services for corporate tax reporting on the tax compliance(tax avoidance, reported income rate). The sample period includes as follow： 2014(preceding year) and 2016(one year after), 2014 (preceding year) and 2017(two years after), 2013․2014(two preceding years) and 2016․2017(two years afterwards). The empirical results show that assistance service for corporate tax reporting has a positive effect on tax compliance. In other words, tax avoidance decreases and reported income ratio increased after providing assistance services for corporate tax reporting. The results impliy that the data provided by assistance service for corporate tax reporting effectively prevents corporations from ommitting some portion of their sales. And it helps reduce the overstated expenses such as unrelated expenses, labor costs, and processing costs. This study suggests that there is a policy implication empirically by showing that assistance service for corporate tax reporting has a positive effect on tax compliance of the taxpayer as intended by The National Tax Service.

Keywords

• Assistance Service for Corporate Tax Reporting
• Tax Compliance
• Tax Avoidance
• Reported Income Ratio

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