Study Of Theory And Practice In Legal Institution Of Taxation In China

Constitution of China stipulates that "The People's Republic of China will govern the country and construct the socialist legalized country according to law."To govern the country according to law will assure lasting law and order, which can produce extensive and far-going influence on social, political and economic life in China. Tax collection is an important measure for a country to obtain financial revenue, and taxation is an important component of a country. Legal institution of taxation is a must for construction of legalized country, and it is the only way for taxation development. Supremacy of Law is the basic characteristic of legal institution, and power restriction and freedom guarantee are the core values of legal institution. Legal institution of taxation has general meaning of legal institution, and also its own specific connotations. Justice and equality are the most fundamental requirement for legal institution of taxation, and legal institution of taxation takes the restriction to power for tax collection as the core, and it is an organic integration of entity value and form value. A legalized country is the political foundation for legal institution of taxation. The subject of tax distribution is the state or government, and basis for existence of tax collection is the political power of the state or government. To govern the country according to law will decide all activities of the state or government will be legalized, including the behavior, which certainly cover legalization of tax collection. Without the legalized country, there will not be the legalized tax collection. Market economy is the economic foundation to decide legal institution of taxation. Economy decides tax collection form and corresponding legal institution of taxation. Based on independent enterprise system and equal economic relations, the market economy has possessed rather perfect market system and market laws and regulations as an open economy. Internal requirement of market economy can only be submitted and met through legalization to some extent. Market economy is a key force for decision to govern the country according to law, and also the economic foundation to realize legal institution of taxation. Due to high level of legal institution, the Western countries have already stepped on a way of legalization in taxation management, which are mainly represented on stability and closeness of taxation legislation, strictness in tax law enforcement, independence in taxation justice, guarantee in tax law enforcement, popularity in tax law observation, and perfection in tax payment and service system. To borrow beneficial experience in legal institution of taxation abroad will have great practical significance for promotion of legal institution of taxation in China. Since establishment of China, the construction of legal institution of taxation in China has passed four stages of initial probe—handling taxation according to law—handling taxation according to law—legal institution of taxation. Now some effects have been already achieved in legal institution of taxation in the following aspects: 1. The taxation framework has bee initially established that fits for development of the market economy. Since 1994 when the taxation system reform was carried out, China has formed its taxation system based mainly on turnover tax and income tax, with other tax items used as auxiliary means to facilitate economic regulation on various levels. A series of tax laws and regulations promulgated have roughly reached the goal of centralized tax laws, fair tax burden, simplified taxation system, and reasonable power division. 2. Pattern of tax collection and management has been initially established that conforms to the legalization spirit. China has already preliminarily established a complete set of scientific, strict, standardized, and effective tax collection and management methods, and the pattern of tax collection and management taking the modernized information measures as the basis, and integrating tax collection and key audit practice has taking form. 3. Tax law enforcement and supervision have achieved preliminary result. The State Taxation Bureau has launched tax law enforcementinspection in the whole taxation system since 1995, and such tax inspection has already become a routine law enforcement inspection and supervision work in the real sense. 4. Social environment for legal institution of taxation has been obviously improved. With deep going of tax law publicity, the concept of legal institution of taxation has been well received among the people with each passing day. The legalization construction of taxation makes distinct achievement, and fair, just, and open taxation legalization environment has already taken form. Although legal institution of taxation has made obvious achievement within a short time, there are still many problems restricting legal institution of taxation. In the aspect of tax legislation, the legislation system of taxation, and structure of taxation system are not so reasonable, the existing tax laws and regulations are not perfect, and contradiction really exists between different laws and regulations. In the aspect of tax law enforcement, such phenomena come protruding as emphasizing governing by people instead of law, negligence on procedure law, laying stress on subjective judgment instead of law enforcement procedure, laying stress on taxation target, and negligence on tax collection and management order. In the aspect of tax justice, the forced execution of tax collection and protective measures are not rigid enough, the construction of tax judicial guarantee system is rather weak. In the aspect of taxation environment, administrative interference phenomena are widely found, the tax-paying consciousness is weak, tax dodgery, evasion, and cheating are difficult to control. In the aspect of tax supervision and restriction, the supervision management, supervision measures and supervision responsibility are not sufficient. If the above problems cannot be overcome, then, it will delay and affect progress of legal institution of taxation. In view of the existing problems in legal institution of taxation in China, we should learn from useful practical experience of the Western countries, and set forth basic countermeasures in accordance with spirit on legal institution and national conditions of China. 1. Reform and perfection of tax legislation. We should make fundamental law of taxation, standardize basic content of the tax law system of China, raise lawful level of existing taxation administrative laws, and reinforce the legal effect of tax laws. We will also need to fully revise the existing tax law to reach integration and consistency of legal system of taxation, improve department laws, and perfect legal structure of the tax law. 2. Intensification and standardization of tax law enforcement. We must promote legal quality of law enforcing subject, and intensify the concept of governing according to law of the lay enforcing subject. We will set up organizational framework rationally according to demand for tax collection and process flow, set up well coordinated, well related, mutually supervised and restricted, and highly efficient tax collection and management quality system. We will accelerate taxation information construction, and make full use of information management means to improve management effect and quality and efficiency of tax collection and management to a big margin. We will improve taxation planning system, change the tendency to lay stress on taxation task, and neglect tax collection order, so as to realize conversion from command type planning to directive planning. We will standardize the income mechanism of the government, realize functional transformation of the government, relocate financial resource, optimize expenditure structure, realize connection and common share of taxation information with related social departments and sectors, which will be beneficial for omni-directional tax source supervision and control, promotion of complete social taxation coordinating capacity, and acceleration of legal institution of taxation. 3. Reform and improvement of taxation justice. We will establish tax police organizations to effectively attack tax-involving criminals and to reduce revenue loss. We will establish independent taxation court, which will get rid of local administrative interference in personnel management, and funds, and promote the tax case handling quality and fairness and justice in case handling. 4. Management and purification of taxation environment. We will strengthen taxation publicity, take the tax publicity as a long-term strategy of the national education to improve the quality of citizens, vigorously...