Legal Considerations About China Tax Competition Between Local Governments Outside The Systems

This thesis borrowing Western countries on relevant theories of tax competition,based on the careful analysis of main characteristics and basic form about our tax competition between local governments outside the system. From the legal perspective of our careful analysis of the effects and causes of tax competition outside the system,The measures proposed by the rule of law about eliminate tax competition outside the system. This thesis divided into five parts::Ⅰ. Western countries on relevant theories of tax competition between local governments .Mainly to theory of increase the efficiency and reduction the efficiency. Public choice school of "voting with their feet" theory argued that, Tax competition can raise the efficiency of public goods provided by the Government。In order to avoid the loss of creation taxation residents in this area, The local government will increase satisfaction with the financial efficiency and supply of public goods,provide the best public services under the conditions of minimal taxation. "fiscal federalism" theory of the public economics school believe that, Tax competition may have a negative effect. Under tax competition,No one can get the benefits,Will eventually be caught in non-cooperative game of "prisoner's dilemma". The output of local public services will not reach the optimal level under tax competition, and Leading to resource misallocation and economic distortions. The standard public school of economics suppose it is a benevolent government,Pursue the maximization of social welfare,tax competition will not reach the optimal level of output about local public services. Public choice school think Government is a selfish government,Pursuit income maximization,Tax competition will enhance the well-being,Restrictions on the government budget spending. Tax competition within the system generally occurs in federal countries, In China a "tax centralized, unified tax administration," the highly centralized tax rights management system , Tax competition between local governments to carry out Mostly outside the system more harm than good for unordered tax competition. China is not only strengthen the orderly tax competition outside the system between the local governments, also limit tax competition disorderly outside the system between local governments.Ⅱ. Characteristic analysis of China tax competition between local governments outside the system.The basic form of China tax competition between local governments outside the system including: Illegal relief, financial return, disguised subsidies, jurisdictional competition and local protectionism, tax-buying taxation, and so on. The main feature:the main means is abuse of tax incentives, As the provisions of current tax incentives are too broad and simple, the space of discretionary and random interpretation so large,leaving a space for local governments to carry out tax competition Outside the system. In order to attract capital, the tax structure of China on goods and services tax (turnover tax) as the main body is fundamentally different from the Western developed countries as the main income tax structure,decision to tax competition between local governments outside the system focus is on the capital element. as the main form of administrative decisions Of government. Some local governments out of tax incentives for the complicated procedures of legislation and legal binding,Take a large number of financial return, illegal relief in the form of administrative decisions such as tax concessions granted to the taxpayers,In the hands of the executive power to seek additional revenue. External incentives is regional economic imbalances, the extreme imbalance of Regional economic development and tax revenue, Leading to central and western regions to speed up economic development and attract investment capital to strengthen strokes,They have adopted the way tax competition outside the system,To attract economic resources, especially the inflow of capital element. To win the political interests of the intrinsic motivation,government officials at the expense of resources and the environment and economic benefits for the cost of engaging in short-term behavior,Choose flexible tax competition outside the system to obtain economic resources and capital elements,In order to support and enhance the stability of the political status.Ⅲ.The legal analysis of effects about China tax competition between local governments outside the system.In the tax highly centralized system, the emergence and expansion of Tax competition between local governments outside the system,Its essence is to tax the legal doctrine the result of weakening. From a legal perspective to analyze, China tax competition between local governments outside the system violates the basic principles of tax law。Contrary to the principle of legality Tax,Tax competition outside the system undermines the authority and integrity of tax law,Dilute the state's macro-control effects of tax incentives,Weakened the strength and credibility of the implementation of tax laws. Contrary to the principle of tax fairness,Tax competition outside the system seriously eroded the national tax base,The ability to allow taxpayers to lack of a comprehensive measure of tax burden,Prevent horizontal equity and vertical equity tax,The formation of the unequal tax competition Contrary to the principle of tax efficiency,Tax competition outside the system so that the actual tax burden differ between regions,Lead to the production elements from the most efficient use of the actual tax burden is the higher areas to the efficiency and the actual tax burden is relatively low in areas,Efficiency losses caused by. Contrary to the principle of tax neutrality, Tax competition outside the system not only result in the tax treatment of non-nationals,And the less developed regions are often at a disadvantage in the competition,Have contributed to non-conforming status of regional economic development. Contrary to the principle of public trust in the tax,Preferential taxation policies outside the system lack a unified, clear and transparent,A result of tax competition and have to bear the debt and insufficient supply of public goods by the central government to solve problems,Investment and financial risk caused by.Ⅳ. The rule of law about China tax competition between local governments outside the system.including:Legislative power to set taxes is unscientific,Not set " the Basic tax Law," A lower level of tax legislation,Lack of corresponding legislative power of local governments,Tax provisions do not truly refined,Tax revenue to local governments greater discretion of law enforcement. There is no independent judicial power to set taxes,Does not have a specific tax justice system,Its functions dispersed in the local government-owned Public Security Bureau, prosecution, courts and other judicial organs,The jurisdiction of local tax revenue caused by the local judiciary of the tax revenue local interests of justice bias. Tax enforcement power of the lack of effective oversight, Tax competition outside the system monitoring mechanism is not sound,Tax law enforcement lack of transparency, Local governments often interfere with law enforcement in taxation ultra vires,The tax authorities instructed the discretion of law enforcement abuse of tax revenue,Random modifications of national tax policy. Reasonable control over the division of tax revenue is not enough,Tax sharing system to enable centralized control over most of the tax revenue,Leading to greater local fiscal gap,in the context of Local governments have very limited legislative powers of taxation,Taken tax competition outside the system to attract capital inflows. The right of tax collection and the lack of clear standards,State Administration of Taxation, local tax and non-tax revenue collection and management of the Authority three collection management institutions scope of existing cross, Finance Bureau and the TAX BUREAU lack of effective coordination between the channels,Lead to inter-regional tax collection agencies which compete with each other to carry out new sources of revenue and tax competition. Ⅴ. The law measures to eliminate tax competition between local governments outside the system.Including:Improve the tax legislative system,Improve the "Anti-Unfair Competition Law" and "anti-monopoly law",Develop "Tax Basic Law,",Improve the level of tax legislation,The appropriate legislative powers vested in local tax revenue,The legislative process to speed up tax reform,Tax competition outside the system to narrow the space. Adjusting the tax policy orientation, Adhere to the "simple tax system, broad tax base, low taxes, strict administration," the direction of tax reform,Changes in the realization of the form of tax incentives, Scientific orientation of regional tax policy orientation,And improve the fiscal transfer payment system,Strengthen the system of tax competition within the orderly。A sound tax judicial guarantees, The establishment of specialized tax court,Improve the Tax Inspectorate bodies , In the tax-house setting the tax police, By a relatively independent judicial body responsible for tax investigations and to hear all cases involving tax,to Supervision and restraint tax competition outside the system. To strengthen supervision of tax enforcement,Specific tax collection and management responsibilities,A sound system of tax-related documents prior to review,The formation of economic zones in accordance with the tax inspection agency,To carry out tax inspection of law enforcement,The establishment of law enforcement accountability system for fault,To strengthen tax enforcement process supervision and.This thesis argues that, in the mode of China's tax rights highly concentrated,Tax competition between local governments outside the system is the essence of taxes weakening of the legal doctrine,The market mechanism to reduce the efficiency of the allocation of economic resources,must take law measures to eliminate tax competition between local governments outside the system. the author hope that this thesis can provide some reference for theoretical research and practical work of tax competition between local governments outside the system.。...