Research On Addressing Loopholes In Taxation Law

The subject of this article was based on such a reality: with the emerging new taxation relationship resulted from the rapid social development and surging technological innovation in economic activities,the frequently rising tax loopholes caused by the incompatibility between obsolete conceptions and regulations of the tax law and the new types of economic relationship and exchanges shall be effectively filled.The tax loophole filling,as an important way to retain the interpretation and development of the tax law,should be specially categorized considering the characteristics of extensive coverage of the tax law and the flexible attribute of tax loopholes.Therefore,instead of elaborating on every tax loophole,this article set the categorization as the basic mindset and theoretical foundation to study tax loophole filling.By categorizing tax loopholes and their filling methods,it will greatly enhance the compatibility between the tax law and the new relationship in economic activities.The observation method of categorization is significant to fill tax loopholes,which is also an important breakthrough in studying the methodological fusion of modern tax law and modern law.On this basis,the article put forward a new viewpoint and crucial conclusion at the end that different categories of tax loophole are correspondent to respective filling methods or vice versa.Research on tax loophole filling mainly consists of the following five chapters.Chapter 1 Legal interpretation of the tax loophole filling.All laws have loopholes.However,due to favorable conditions of producing loopholes like highly volatile regulatory elements in the tax law,tax loopholes are more outstanding and distinctive than in other laws.This chapter first performed comparative analysis between tax loopholes and related notions such as the dead zone,blank area,tax planning and tax preference,reviewed the environment where tax loopholes generate in terms of tax preference,inter-law coordination,regulatory elements and legislative techniques,and sought to setup rules of identifying tax loopholes from the subject,standard and procedure.On this basis,starting from the demarcation between tax loophole filling and legal interpretation and value supplement of the tax law in their narrow senses,it also analyzed the mechanism of tax loophole filling and explains its law-based governing conception.Finally it proposed the general rule of tax loophole filling in four dimensions: exploring as more tax interpretations as possible in the narrow sense,abide by the legislative purpose,following established time-space order and looking for specific applicable rules.Chapter 2 The textual analysis of categorized tax loopholes.In order to be compatible with extensive range of new taxation loopholes,the tax law applies categorization method to ensure equity and effectiveness of taxation and improve the stability of the tax law,meeting the requirements of the nature of this action.This chapter drew the category factors of tax loopholes into uncertain tax notions and incomplete tax rules by the level and distinctive feature of each loophole.Furthermore,they were subdivided into inherent notions,borrowed notions,regulatory rules and standard rules based on the source of laws and formal characteristics of the tax law.With textual analysis of these four divisions,it made evaluative conclusion that concrete causes,preferred tax fields and resulted systematic flaws vary from different tax loopholes,expecting that this will be a useful reference for tax legislation and enforcement of the tax law by properly addressing tax loopholes using effective filling methods.Chapter 3 The analysis of practising tax loophole filling.To make the path of tax loophole filling practically applicable in real cases,we must rely on analyzing real and concrete tax cases in China and summarize universal issues of tax loophole filling.This chapter selected and sorted tax cases used to analyze tax loophole filling methods respectively in legislation,enforcement and justice based on the standard of reflective and revolutionary features,reveals the current practice of tax loophole filling with some typical cases and then systematically inspects many existing flaws in filling methods of legislation,enforcement and justice.Targeted solutions were found for the general path and the reality-based path of China’s tax loophole filling using the progressive way from concrete to abstract and from individual to the whole.Chapter 4 The general path of tax loophole filling.The observation method of categorization is divided into three parts respectively controlled by the legislator,the administrative body and the court.Chapter four and five talked about the tax loophole filling path with this classifying logic.Fundamentally,legislative filling is the most effective and ultimately meaningful to resume a perfect tax law.Therefore,based on the textual analytical result of categorization,this chapter presented a satisfactory three-stage “ought-to-be” static filling path,that is filling the notion loophole by legislative confirmation,filling the rule loophole by legislative refinement and filling the systematic loophole by legislative coordination.This lays the foundation to form the theory and promote the practice of tax loophole filling in China.Chapter 5 The reality-based path of tax loophole filling.In order to overcome the disadvantage of “out-to-be” static filling path in the observation method of categorization,this chapter introduced the “to-be” dynamic loophole filling method,i.e.the observation method of economic activities.From the realistic perspective,various tax loophole filling methods were newly mentioned and studied to be used for tax loopholes from different time-space and categories.In other words,for the space,we should first seek the filling method inside the tax law system and only after that should the rebuilding beyond text be exploited.On the other hand,for the timeline,we should apply a satisfactory three-stage “to-be” dynamic filling path,that is applying a more desirable taxation agreement concluded between the tax collector and the taxpayer to minimize tax loopholes beforehand,applying discretion used by tax authorities to supplement tax loopholes during the implementation and applying tax rebuilding used by judiciary authorities to fill the loophole afterwards.Only with a pragmatic and resilient attitude facing the reality of tax loophole filling would the modernization of China’s tax governance system truly become dynamic and responsive.