On Right Of Subrogation For Tax Collection

According to Article 50 of Tax Collection and Administration Law, tax authorities can exercise the creditor's right in their own name on behalf of the tax payer and therefore realize tax collection for the state when a taxpayer fails to pay tax consciously, his property is obviously insufficient, and his property is reduced due to his idle action in exercising his right. Establishment of subrogation right for tax collection is of great real significance for preventing loss of tax to the state caused by a defaulting taxpayer who is idle in exercising his right, and guarantee tax collection in full and in time to state treasury. Now, the stipulations of the Tax Collection and Administration Law in China are not so clear for practical issues concerning tax collection such as the system of subrogation and its implementing mode, etc. Also, many practical issues need to be further studied. The author of this thesis therefore makes a preliminary study in two angles of theory and practice. Main contents in this article are: Chapter I: Concept and Its Establishment of Right of Subrogation for Tax CollectionIn this chapter, basic concept, source and establishment of right of subrogation for tax collection are introduced firstly, then some factors are discussed, including executive main body of right of subrogation for tax collection, positions of each party, generating legal facts of right of subrogation for tax collection, aims and results and applicable scope of law etc. comparison of relationships between right of subrogation for tax collection and right of subrogation for general creditors. Necessity of establishing right of subrogation for tax collection is expanded from many points of view, including effects of taxation in national economy, features of taxation—gratuity, enforceability and commonweal. Chapter II. Executive Essentials and Its Effects of Rights of Subrogation for Tax collectionTax Collection and Administration Law stipulates that the tax authorities have debtor's right of subrogation for tax collection of taxpayers, but it does not directly prescribe essentials for establishment of such a right. Instead, it quoted contents of Contract Law on rights of subrogation. These stipulations referred to civil rights of subrogation at the very beginning, and it needs further study if they are suitable for tax authorities to execute rights of subrogation to debtors of taxpayers. Therefore, the author discusses four essentials for rights of subrogation for tax collection in consideration of above stipulations in this chapter: duty to pay tax occurs and is confirmed; taxpayer fails to perform duty to pay tax within the period stipulated according to law; taxpayer is idle to exercise the debtor's right due; and tax collection of the state is therefore harmed. In description of constitutive conditions that the "duty to pay tax occurs and is confirmed", it specifies the accurate meaning of the term; In description of constitutive conditions that the "taxpayer fails to perform duty to pay tax within the period stipulated according to law", it makes serious analysis and study of the cause, and forwards its tentative idea that breakthrough maybe possible in some special cases; In description of constitutive conditions that the "taxpayer is idle to exercise the debtor's right due", it makes detailed analysis and study of the cause in two aspects of theory and practice, and forwards its viewpoints; In description of constitutive conditions that the "tax collection of the state is therefore harmed", it forwards four basis for judgment: Firstly, the taxpayer's duty to pay tax to the tax authorities becomes mature. Only after this, it can be determined whether the taxpayer's behavior is harmful to tax collection of state, and whether the tax authorities can exercise right of subrogation to claim the third party to pay off. Secondly, taxpayer constitutes delay in performing duty to pay tax, i.e. the taxpayer fails to pay tax in time after the debtor's right for tax collection to the...