Discussion On The Establishment Of Chinese Complementary Tax Debt Legal System

The complementary tax debt is one outspread form of tax debt, which means that the third person who has special relationship with the tax payer should pay the latter delayed tax when the tax can not been collected completely even after the implementation. This special tax duty is very useful for safeguarding the tax property and realizing the tax debt, especially during present circumstance that social credit system is not perfect and tax payers'compliance should be improved gradually. It also overrides the traditional ideas of taxation. However, during the establishment of complementary tax debt system, we should not ignore the protection of complementary debt payer's right, and prevent any needless passive effect due to ultra limit.This article summarized some basic conceptions about complementary tax debt, and discussed the feasibility and necessity of establishment of Chinese complementary tax debt system. On the basis of comparative research for relative systems of other countries and areas, we drew some successful lessons and gave some ideas for the establishment of China's complementary tax debt system. There are three parts in this article:The first part discussed the meanings of complementary tax debt. After illuminating the definition and characters of tax debt, it mainly explained the meanings of the complementary tax debt. The complementary tax debt means that when we still cannot collect tax completely from tax payers even after implementation, we should regard that persons who have special relationships with the tax payers as complementary debt payers which should pay the tax instead of former tax payers, in order to collecting enough tax. The complementary tax debt has two characters: affiliation and complementation. The affiliation means that the existence and bound of complementary tax debt are based on the existence and bound of main tax debt. The complementation means only when we still cannot collect delayed tax completely after implementation from main tax debt payers, or there are obvious evidences that implementation doesn't effect, we can collect remaining tax from complementary debt payers by estimation. The essential of complementary tax debt is to realize balance between legal form and economic essence, and prevent tax-avoidance in a certain extent. This article also compared the definitions of complementary tax debt, joint tax liability, tax guaranty and tax preservation, and analyzed their differences mainly.The second part researched the feasibility and necessity of establishment of Chinese complementary tax debt system in theory. One hand, the appearance and development of tax debt theory in China provided theoretic base for tax complementary system. The debt theory believes that tax is a kind of relation that government requires tax payers to pay tax debt, and tax duty comes into existence only if there are enough necessary terms instead of government's administration of tax. The legislative ideas and some provisions of"The Law of the People's Republic of China Concerning the Administration of Tax Collection", especially the establishment of tax subrogation and revocation, can be regarded as the symbol of the establishment of tax debt theory. The establishment of complementary tax debt system is to perfect Chinese tax law in theory on the base of tax debt theory. On the other hand, there are some limitation and deficiency in Chinese tax law , such as blankness in tax law, shortage of theoretic support for some actions of collecting delayed tax, too wide range of joint debt, albatross of third person, feebleness of tax revocation and weakness of tax guarantee. In order to solve these problems, we should establish complementary tax debt system and perfect the provisions of preventing delayed tax as soon as possible. This article also explained the importance of establishment of complementary tax debt system for Chinese tax law both in theory and in practice.Third part gave some advices on the Chinese complementary tax debt system. Firstly, it confirmed some basic principles of establishment of complementary tax debt system, such as principle of tax legality, principle of tax equity, principle of material levy, and principle of tax efficiency. Secondly, it discussed the content of complementary tax debt system from applicable objects and liability bound. After drawing lessons about the applicable objects of second tax duty from Japan, Korea and Chinese Taiwan, we raised basic thoughts about applicable objects of Chinese complementary tax debt system: First is to use similar provisions in present private law. Second is to amend properly"The Law of the People's Republic of China Concerning the Administration of Tax Collection". Third is to add some provisions to prevent tax avoidance. It also discussed the duty bound of complementary tax debt, and believed it is more reasonable to exclude the late fee. Lastly, it discussed the procedural content of Chinese complementary tax debt system concretely such as appearance, implementation and disappearance and relief of complementary tax debt. There are two necessary terms for complementary tax debt: one is that the tax payers don't pay within time limit prescribed by the law, the other is that tax payers are unable to pay the delayed tax. Only when we cannot collect delayed tax completely after implementation, or there are obvious evidences that implementation can not effect, we can use the procedure of complementary tax debt. After drawing the lessons from Japanese legislation, it demonstrated the procedures of complementary tax debt, and analyzed the five conditions of disappearance of complementary tax debt, such as implementation, counterbalance, exemption, hotchpotch, and extinctive prescription. It also confirmed that when the terms are not enough for complementary tax duty, or there are flaws in main tax duty which make mistakes in estimating the complementary debt, the complementary tax debt payers should have right of appealing tax rebate, right of statement and averment, right of procedural resistance, and right of relief.