Study On The Legitimacy Of Taxable Income

In our country, the conventional view holds out that Tax Authority only should charge a tax on the lawfull income. But in the practice, Tax Authority often charge the tax on the"grey income"in the society. However, they can not find any theory to support their tax act on the unlawful income, and not find any legal ground in the Tax Law. The taxation scholars have made much heated discussion on the question under the scope of theory. In the end, they came into two wholly opposite parties. One party holds out that Tax Authority only should charge tax on lawful income; the other party think that unlawful income also should be charged tax on. The author supports the second viewpoint, and holds out that there are two sub-questions about the question of"legitimacy". The one is the issue of taxation on the unlawful income; the other is the problem of relation between the"taxation"and the"legitimacy". If the two questions can be solved very well, we may change the people's position about the wrong viewpoint on the"legitimacy". So in the article, the author have did demonstrate and arrived at a conclusion from the point of the logic and the reason. That is the enlargement of the taxation scope for the taxable income is more reasonable, and the unlawful income have no relation with the"legitimacy".