China's Tax System Research Council

Tax is the main source of fiscal revenue of the governments, and meanwhile closely linked to the citizen's actual personal benefits as a right violation act, so all the countries in the world are attaching great importance to tax system. To perfect its own tax system, our country has started to implement tax-sharing fiscal management system since 1994 and national fiscal revenue has realized steady growth over these 15 years. However, tax-sharing is an imported system, and our theoretical preparation during the implementation of this system is less sufficient, and up to now has further underlined its hysteresis quality of relevant laws and policies, facing new social phenomenon and problems emerging in tax practice.At present stage, the most prominent problem in tax practice is that the extreme disunity of allocation of financial powers and office authorities between central authorities and local governments and failure of local governments to own enough financial support though with a number of office authorities have resulted in that local governments are paying more focus on how to guarantee fiscal revenue, but ignoring their own governmental functions.Especially at present stage of social development, in the face of hot sales in real estate market, local governments in succession have been pouring enormous passion on housing property and land use taxes.In a short time, masses of state-owned lands were legally transferred, and developed, and "land kings" all over the country have emerged endlessly, which has severely disturbed management order of state-owned lands. At the same time, local governments are bearing a compelling obligation for the not-receding fever in real estate market.To come up with rational suggestions on these problems in reality, this paper has analyzed the background and content of reform execution of tax-sharing system in our country, emphasized the analysis on the existing problems in reform and especially new situations, and found the underlying reasons for the growing of these problems, namely unbalance of financial powers and office authorities in local governments bringing about the deficiency of local tax legislation power. Therefore, different form the practice of the scholars who often studied tax power practice on the perspective of fiscal science in the past, this paper is trying to propose some opinions and suggestions on the perfection of tax system reform in our country, expecting to help the perfection of tax practice and the coordination of legal system in our country.