Research On The Loss Of Individual Income Tax And Strategic Administrative

As a direct tax levied on individuals, individual income tax plays an important role in increasing government revenue and adjusting residents'income gaps. China's individual income tax started late, but has developed rapidly. Since the start of collection there has been substantial revenue growth year after year. However, because the current individual income tax system is not perfect, tax collection and administration system is imperfect, and collection and administation measures are not so proper, the function of individual income tax has not given its full play. Individual income tax should be mainly undertaken by the high-income groups, while the low-income earners turn out to be the main force, which is a severe departure from the principle of "burden according to ability". It's a common phenomenon that taxpayers are not willing to comply with tax system and tax administration, which intensifies the loss of individual income tax in China.Tax loss is accompanied by the emergence of tax, and tax varies with the development of tax. The loss of IIT in China is owing to many aspects. Apart from the inperfection of tax system, the main reason lies in the absence and weakness of tax administration. From the angle of tax administration, this thesis tends to research and resolve the severe problem of the loss of IIT in China, which is of great significance.By combining literature research with contrasting research, this thesis analysizes the present situation of the loss of IIT in China, which is mainly reflected in that, as a percentage of total tax revenue and GDP, IIT in China is still insignificant. Through the research on the main means and channels of the loss of IIT, the thesis targets on the tax administration that leads to the loss of IIT. The IIT withholding system is not fully implemented, the level of information technology is generally low, the channel of information exchange is not smooth, the tax auditing power is not strong, and tax propaganda and service are not satisfactory, which jointly lead to even more severe loss of IIT. This thesis selectively refers to the effective measures the developped countries have taken to cope with the loss of IIT. For example, in Britain, individual income tax return is completed through electronic tax declaration system; the unique "Blue" and "White" return system is adopted in Japan; in the United States, the analysis of taxpayers' information is completed by computer; in Germany, tax authorities encourage honest taxpayers by awarding them tax credit rating points; in some other European and American countries, the taxpayers'life-long identification codes are implemented. The developed countries'legal, modern, humane, professional, and social administration of taxation, is well-worth our carefully studying, properly absorbing and refering, which is of great benefit to the optimization of our tax collection and administration model, as well as to the prevention of tax loss. By inducing these mature and perfect practices and combining them with China's actual situation and reality, the author concludes some tax administration measures that are quite reliable and realistic, namely, tax source monitoring system should be furhter perfected, tax propaganda should be enhanced, the quality and the content of tax service should be up-levelled, tax inspection and penalty should be effectively enforced, and relevant supporting measures concerning tax administration should be set up.