The Comparison Of Income Tax Evasion In China And In The United States

Income tax evasion is one of the most serious and most common tax crimes in the world. Countries adopting tax systems could rarely immune from that crime. The more advance the country is, the more complicated the income tax evasion crimes in that country are, and the more well developed the income tax evasion laws it has. Generally speaking, such crimes in developed countries are more serious than those in developing ones, and accordingly the income tax evasion laws in former countries work better than those in later ones. The paper compares the income tax evasion laws and practices in China, one of the developing countries, and in the United States, one of the developed countries, to address the similar points and different views they have, and on the basis of which the suggestions of improving income tax evasion laws are provided.The paper is composed of four parts, discussing four income tax evasion aspects in China and in the United States; they are, the historical background, laws, cases, practices and suggestions. Each part talks about one aspect, with discussing relative content in China first and then in the United States, and on the basis of which giving the conclusions of comparison.The first part addresses the historical background of income tax evasion laws in both China and the United States with amendments afterwards. The second partintroduces laws and their elements about income tax evasion in both countries, from which China may learn to amend its laws. The third part transfers to the real cases that evading income taxes in either country and from that a practical view is governed. The last part focuses on the similar problems both countries face under the globalization, troubles either country has upon its national development, and suggestions to amend income tax evasion laws in China.