On The Fair Principle Of Taxation And Its Realization In The Value-added Tax Law Of China

The fair principle of taxation is one of the basic principles in tax law, and it is thecode of law with common guiding significance in the legislation, execution, andjudicature of tax laws. The fair principle of taxation studied in conventional tax law isfocused on the investigation of whether fair or not of the tax burden, however, this isan understanding of the fair principle of taxation in a narrow sense, which is due tothe different understanding of the concepts of nation and taxation. Based on thetheory of social contract, "social needs", and "taxation pricing", the tax law could beconsidered as the result of legislation of taxation under the authorization of citizens,this also shows that the essence of legal relation of taxation is a kind of equal legalrelation. As all taxation activities can only be completed within the categories of legalrelation of taxation, and all the rights and obligations of subject of taxation areincluded in this legal relation, thus, The fair principle of taxation requires the justiceand equality for the subject of taxation, fair treatment, equal protection anddistribution for the object of taxation in the legal relation, not merely limited in theequal treatment of tax burden. Based on this understanding, the realization of the fairprinciple of taxation in the taxation practice can be analyzed more clearly accordingto various legal relations of taxation and which is in favor of the instruction oftaxation practice. Theoretically speaking, the fair principle of taxation is a kind ofnecessary requirement, however, it is relative for idiographic tax law as different taxlaw is determined by the character. This requirement should be realized by makingevery effort and combining the features of the present tax law for further improvementof the tax law system. By analyzing the present value-added tax (VAT) law, werealized that the fair principle of taxation has not been implemented very well. Thereexist some unfair phenomena in the distribution of tax rights between the nation andthe taxpayers, tax burden of national taxpayers, procedure of tax levying, and the taxburden of international taxpayers. Measures must be taken to solve these problemsand to realize the equal taxation in VAT gradually. Possible measures include thetransformation of VAT, adjustment of sharing percentage of VAT revenue, enlargementof the incidence of VAT taxation, normative definition of VAT taxpayers, perfectsystem of refunding VAT taxes on exported goods, gradual lowering of the status ofVAT in the whole tax system, and this should be done on the basis of legislation ofThe fair principle of taxation and VAT.