Accurate tax forecast is very important to carry on the macroscopic regulation efficiently under the market economy. However, experience shows that it is very difficult to improve the accuracy of forecasting by setting up a single forecasting model. This article describes the deficiencies of the present forecasting methods and puts forward a new approach to improve the accuracy of prediction by introducing error correction. First, this paper carries out initial prediction of tax revenue by using the LS-SVR model. Second, the accelerated translation transform and weighting mean value generating transform are introduced to process the error sequence. On the basis of the processed data, the error predictive method based on data transformational GM(1,1) is constructed and predicts the subsequent error. Third, the correction of preliminary prediction values is calibrated. The case study based on Chinese tax revenue during the last 30 years shows that the presented approach improves the accuracy of forecasting significantly compared with the prediction accuracy before correction, and then the validity of the model is verified. 
Error correction method based on data transformational GM(1,1) and application on tax forecasting