On The Construction Of China's Tax Compromise System

For a tax country, a country's constant survival depends a lot on the fiscal revenue, which can continuously supply the country's public expenditure, however, tax plays an important part in the fiscal income. Tax collection faces so many complex situations. Moreover, the taxpayer's third-party obligation is of particular importance for the tax collection, because the taxpayer knows more about taxation-related evidence and fact. When the taxation-related fact and evidence is not clear, the taxpayer won't entirely do their third-party obligation, and terms of the investigation has already exhausted, compromise between the tax authority and taxpayer will effectively solve the problem under the traditional mode of tax collection, that taxpayer don't have enough enthusiasm to participate in the tax process and the efficiency of tax collection is low, moreover, the compromise can also increase each other's communication, reduce tax disputes, and effectively achieve tax purposes.The compromise stresses that the two sides settle the dispute through equal consultation, thus initially used only in the field of private law. However, as the function of the states begin to converse, the traditional administrative sanctions have been insufficient to address the diversity of the accompanying disputes and to achieve diversify administrative purposes. Compromise system starts to be applied in the field of public law as a more democratic and more flexible administrative means. The application of compromise in the administrative law have raised the discussion of tax compromise, and the theory that the nature of tax is the liabilities of the people who pay for the common product supplied by the government have supplied theoretical basis for the tax compromise. Also it does not violate the basic principles of the tax law, so it is feasible in theory. China's current practice which is called tax interview has reflected the spirit of compromise, the system operates well, which not only respects the rights of taxpayers, but also improves tax collection efficiency. But because the tax interview now is only the internal working method of the tax authority, so we need construct our tax compromise system. Having a look of the international practices of tax compromise, to expand the rights of taxpayers, to monitor the behavior of tax authorities through a sound procedure, to maintain the neutrality of the tax compromise and so on should be considered in the tax compromise system. In this paper, the author tries to construct China's tax compromise system from both the substantive law and procedural law. This paper is divided into five parts:Part I: China's current system of tax interview. This part has introduced China's current tax system from the aspects of object, scope, process and forces, from which the reader can have an image of its experience and shortcoming.Part II: The difference between the existing tax interview system and tax compromise system. The current tax interview system is only an internal working method established by the tax authority, in some aspects, such as the subject of interview, the scope of interview, the effectiveness to settle the dispute, there are so many differences between tax interview and tax compromise.Part III: The theoretical feasibility of tax compromise. Administrative compromise starts the consideration of tax compromise, the theory of tax liabilities provide a theoretical basis for the tax compromise. This part also discussed why the tax compromise doesn't violate the three basic doctrine of tax law, from two aspects, that the agreement for taxation-related facts, and the agreement of the ability to pay for tax.Part IV: Learning from the outside States'tax compromise system. Many states have made up their own tax compromise system, and it is worthy for us to learn from, this part mainly introduced the United States'tax compromise system and its experience we can learn.Part V: The construction of China's tax compromise system. In summing up the experience of relevant institutions at home and abroad, this paper try to construct China's tax compromise system from both the substantive law and procedural law. From the substantive law, this paper have defined the subject of the tax compromise, the main power (or right) enjoyed by the subject, the legal force of the compromise agreement and so on; From the procedural law, this paper have constructed a series of systems to protect the effective functioning of the tax compromise, such as the withdrawal system, hearing system and supervision system.