Research On Legal Countermeasures Against Personal Income Tax Loss Of High-income Earners

Personal income tax is not only an important source of state revenue, but also an important tool for regulating the distribution of income. In particular, when the market economy develops to a certain stage, the total amount of the social wealth is increasing and the income gap among members of society is widening, the personal income tax as a tool for regulating the value of the distribution of income will draw more extensive attention and higher expectation. However, in the real social distribution, the high-income groups haven't been being the main part of personal income tax. On the contrary, the loss of personal income tax of high-income earners is serious, which not only affects the normal accumulation of fiscal revenue, but also greatly restricted the individual regulatory role of income tax. It wouldn't lead to the socio-economic sustainable and healthy development, and to social equity and harmony. This paper analyzed the status and reasons of loss of Personal income tax of high-income earners, seeked for the legal ways to govern the loss of personal income tax of Chinese high-income earners, based on a personal income tax evasion case of high-income earners and some foreign cases.This paper divided into three parts. The first part brings forward the question, which firstly pointed out the social background and significance of strengthening the supervision of personal income tax of high-income earners, then introduced a personal income tax evasion case of high-income earners, and thus led to the core issue of this paper, namely, the issue about the loss of personal income tax of high-income earners and its governance. The second part analyzed the issues, which defined the high-income earners, and analysed the typical means of tax evasion of high-income earners, expatiated the personal income tax loss status of Chinese high-income earners, then focused on the reason of personal income tax loss of high-income earners. The third part solved the problem. Based on the tax reform in Russia and the legal response of governing personal income tax loss of high-income earners in USA, introduced the successful foreign experience on the governing personal income tax loss of high-income earners, and brought forward basic principles and specific proposals on the governance of Personal income tax loss of high-income earners.