A Tentative Study On Legalization Of Tax Regulation Of China

The activities of tax regulation prevail above the usual social and economic areas nowadays. The theories of tax laws claim legalization of all the activities that concerned tax. Overall, the current circumstance of tax regulation could not reach the needs of the spirit of tax law. The legalization of tax regulation still has a long way to go. In this article, I want to try researching the function of Chinese tax regulation by means of the theories thrive in western countries'tax law (just as the principle of legality) and the theories which concern the relationships between the tax and economic in order to explore some ideas about our countries'legalization of tax regulation.Based on this, the article is divided into four parts. The first part explains the implication of tax regulation by analyzing the tax-related concepts and defines the position and function of tax regulation in the whole tax system. The reasonability and legality of tax regulation could be endowed by tax law, which also using micro-instruments to achieve macroeconomic goals. Specifically,tax regulation works on recourse allocation, income distribution and economic operation by the mechanism of automatic stabilizers and countercyclical choice. The second part discusses the connection between tax regulation and the principle of tax law, especially the signification of the basic principle of legality, fairness and efficiency, as well as how they act on the process of tax regulation. The tax regulation can not be insulated from the basic principle of tax law, which must follow the spirit and rules of these principles of tax law in order to achieving the aim of legalization. The third part analyzes the unlawful and unreasonable aspects of the China's tax regulation status quo from an empirical perspective, which focusing on the problems of lack of legitimacy, negative effects of tax regulation and so on. The forth part discusses on the matter of subject, mechanism, procedure, supervision of tax regulation in order to build the basic framework of our countries'legalization of tax regulation. The powers of tax regulation should be vertical and horizontal divided more reasonable. The mechanism of automatic stabilizers and countercyclical choice should be defined and fixed. The procedures of tax regulation should be separated into decision-making phase and enforcement phase clearly. The system of dynamic monitoring, judicial review and tax law liability should be established and improved.