Study On Legal Problems Of Foreign-related Tax Collection And Management In China

Nowadays the economy in the whole word has become wired, and the financial crisis which extends to other counties at the fantastic speed just proves it. At the same time, because of the financial crisis which brings about more Cross-border emergences and the development of opening and reforming, more foreign capital is absorbed into our country, which brings the development opportunities. Meanwhile, the challenge of foreign-related tax collection and management is faced by China, such as the collection and management system and mechanism which has not met the requirement of the foreign-related tax collection and management, and the collection and management needs to be improved because of the more brilliant means of the avoiding tax which is used by the foreign enterprises. So it is of importance to decrease the foreign-related tax losses when using the foreign capital.The foreign-related tax collection and management is attached importance in the developed country. At the first, from the perspective of one county, its fiscal revenues, strategies of macro regulation, trade and investment promotion and the development of economy and society are directly related to the foreign-related tax collection and management. Besides, from the perspective of one enterprise, the foreign-related tax collection and management is also taken seriously, for one enterprise has to decrease the cost in tax to make big profits.This article which has 33 thousand words is divided into five chapters. And from different aspects, this paper elaborates on the legal question of the foreign-related tax collection and management.The first chapter briefly discusses the basic theory including the basic concepts and characteristics, basic principles and functions. Firstly, the basic concepts include the foreign-related tax and the tax collection and management, according to which the concept of the foreign-related tax collection and management is defined, and then further summarize the characteristics from aspects such as subjects, objects, the basis and methods; the next provides six basic principles mainly covering the principle of Sovereign Independence, the principle of Safeguarding the National Economic Interest, the principle of fairness, the principle of Protecting Rights of Taxpayers, the principle of Respecting the International Treaty and Practice, and the principle of Legality. And the principle of Protecting Rights of Taxpayers is a new idea; the last part briefly discusses the basic function such as getting the fiscal revenues and preventing the tax evasion, the feedback of macro policy, and spurring the economic growth on.The second chapter analyses the system and mechanism of the foreign-related tax collection and management from the aspect of its present status and problems. At first, this chapter simply analyses the basic situation about the National Tax Bureau and the Local, and puts forward the defects. For example, the establishment of administration sections is irrational; the mechanism doesn't meet the requirement of fine management and so on.The third chapter gives a clear explanation of the legal questions about measures of the foreign-related tax collection and management from four aspects covering the tax administrator system, the tax auditing concerning foreign capitals, the tax payment assessment and the tax administration for the sales and purchase of foreign exchange. In the first place, discuss on the tax administrator system, which involves the legal ground, the implication, the responsibilities of the administrator, and its meaning. And offer the problems in the implementation process, including a lack of the tax administrator, disqualification of the administrator, the too many duties, etc; and then focus on the disadvantages of the tax auditing such as the inefficient tax auditing, subjects of implementation which are identical, and etc; thirdly, illustrate the drawbacks of tax payment assessment in the respect of legal ground, the procedures and so on, and then further point out the problem through practice, for instance, imperfect index systems, dealing with the result of assessing inappropriately; the last part is about the weakness of the tax administration for the sales and purchase of foreign exchange.The fourth chapter separately discusses the anti-avoidance according to the new Enterprise Income Tax Law, mainly consisting of adjusting the Transfer Pricing, preventing the thin capitalization, keeping off taking advantage of tax harbor and abusing tax treaty, especially the part of"adjusting the transfer pricing"which explains three aspects on the system of declaration, Transfer Pricing, and Advance Pricing Agreement.The last chapter presents the concrete proposals to strengthen the foreign-related tax collection and management based on China's actual conditions and experience from other countries. This chapter offs eleven suggestions from tow aspect including the basic work and concrete measures. The former covers allocating resources reasonably, building the system of information, creating and improving the system of tax deputy, improving the services and the system and mechanism. The latter involves enhancing the supervision of the administrator, perfecting the mechanism of punishment aiming at the conviction of foreign-related enterprises, enhancing the work of the tax auditing concerning foreign capitals, improving the tax payment assessment, and strengthening the work of the anti-avoidance.