Research On Reform And Perfection Of Morderm Taxation Management System

Improving the Taxation Management System is one of the topics that the experts and researchers have been working on, especially when the Taxation Management System established after the reform on 1994. With the time elapse, this system has been enhanced and improved gradually to meet the need of time and the development of social economics.It has also played an important role in increasing government revenues and promoting national macroeconomic control. However, in this transferring period, the prompt development and change in many fields has raised the demand for reforming the current taxation management system. To solve the new problems, it is required to set out the practical reform scheme and make more research on this topic.The thesis is divieded into four chapters.Chapter I The concept and content of taxation management system.Taxation management system is the system to proportion the taxation incomes, taxation management purview and taxation legislation purview. As the section of national taxation forum, the taxation management system reflects the right of distribution between central and local governments, local governments as well as exertion of imposition, rights and legislation rights.The partition of taxation incomes and management purview between central government and local governments consists of the basic content of taxation management system.Nowdays, the taxation management system of each country is separated into two categories,one is the centralized taxation management system, the other is the authorized taxation management system.Based on the managing purview and scope between central government and local governments, the taxation management system can be separated into four models:1.The decentralization of legislation and tax source sharing Model representing by the United States.2.The centralized levy and decentralized management model representingby Japan3.The centralized levy and taxation sharing model representing by Germany.4.The partly centralized and partly decentralized model representing by the Great Britain.Chapter II Introduction of the historical development of China taxation management system.First Period(from 1950 to 1957)In the preliminary period of the establishment of People's Republic of China, the financial system is highly centralized with all the rights empowered by the central government.Second period (from 1958 to 1976)In the year of 1958, the economic system is reformed in many ways. According to the Regulation on improving the taxation managemnt system published by the State Council, the levy rights of seven tax category as the fixed revenue of local government are transferred to the provincial and municipal governments. With regards to the circulating tax, products tax which were originally controlled by the central government, the provincial and municipal governments are empowered in specific area to make their own decision on deduction, exemption and levy .The local governments are allowed to constitute the local levying system and add new tax. The provincial and municipal governments are allowed to make decision on the deduction of tax levy on monority districts and districts hit by natural calamity.The third period (from 1977 to 1982)In November of 1977, the State Council made public the Regulation on Taxation Management System of Ministry of Finance, in which the rights of taxation management is classified and part of rights were centralized to the central government.The fourth period (from 1983 to 1994)The taxation management system in this period is based on the Regulation on Taxation Management System published in November of 1977 by the State Council. With the changing of economic environment, the State Council and the Ministry of Finance had made additional explanation on theRegulation.The fifth period ( from 1994 to nowdays)From 1994, the government started to implement the proportional taxation financial management system after learning experience from market economic countries and considering the practical situation of China. In accordance with the socialist market economy frame, this taxation system has played an important role in promoting the continuous, stable and fast growth of Chinese economy, enhancing the macroeconomic control power of central finance and improving the financial revenues.Chapter IQ Introduction to current taxation management system.The current taxation management system enjoys three characteristics. Firstly, it includes the modern proportional taxation system to some content. Secondly, the old system of measuring the income tax of enterprises by administrational subjection, which is a block to the deepen reform of enterprises and the trend of speciality unity.Thirdly, the tax shared between central and local government stays at a rather high proportion which is far from the requirement of entire proportional taxation system.The current taxation levying system is based on the Regulation published by the State Council in the November of 1977 and following provisions. The taxation rights is separated into three levels, the State Council, the Ministry of Finance as well as provincial and municipal governments. It is clearly staetd the rights of each level.The effects of current proportional system is as follows: add the financial revenue, manoeuvre the enthusiasm of both the central government and the local governments, improve the macroeconomic control capability of the central government, promote the continuous, fast and healthy growth of national economy, ensure the stability of the country. From which reform, eastern areas, western areas and middle areas have all benefited and the enlarging trend of finance difference between each area is decreased.The problems existing with the current proportional taxation system includes cross and transfixion of financial rights and administrational rights, imperfection of transferring disbursement system, lack of supervision, two proportions of financial revenue remaining in low level, the governmentincome system not perfected yet, more and more the project out of budget with increasing scale. There are still much traces from the previous system.Chapter V Summary on the reform of the taxation management systemIt is of great importance to reform the taxation management system, classify the rights of taxation income ,taxation management and taxation legislation, as well as establish the new taxation management system to match the financial management system. It is favorable to the implementation of policies, regulations and program of taxation, favorable to the interests of the central government and local governments and manoeuvre the enthusiasm of each level, favorable to the full use of power of taxation as economic lever, and favorable to the enhancement of taxation management.The basic principle of establishing and perfecting the taxation management system is as follows: in favor of the development of socialist market economy, united leadership and separate management; combination of obligation, power and rights, the independency, integrality and in harmony with other management systems.The thoughts for the reform and improvement of taxation management system is as follows: optimizing the current tax constitution, promote steadily the reform on tax and fees, regulate the distribution order of government revenue, straighten out the tax preferential policies, measure out with reason the levy rights between the central government and local governments, enhance the levying of tax.In summary, the overall and deepened reform on the taxation management system in composed of the strengthening and perfection of current taxation system, the reform of tax management system, the establishment of reasonable local taxation system, the clear classification of distribution rights between the central government and local governments, the deepened reform of tax levying system. The innovation and running of the new levying model will definitely promote the deepening and perfection of the reform of proportional taxation system.