Notice of RetractionTaxpayer compliance in China: A prospect theory analysis

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.


Many researchers have used prospect theory to analyze the taxpayer compliance issues and their results have confirmed that the prospect theory can explain the bounded rationality decision-making of taxpayer. However, previous research is based on the comprehensive income tax system and the Chinese income tax system is still a simple categories income tax system, which is completely different from the developed countries. This paper uses experiment to investigate the impact of audit rate and advance tax payments on taxpayer compliance under the Chinese tax system. Our experiment results show that taxpayer compliance enhances with greater audit rate and appropriate addition of advance tax payments, but when the amount of advance tax payments become excessive, the impact of advance tax payments on taxpayer compliance becomes ambiguous.