An Analysis On Chinese Tax Administrative Costs Control

The administrative costs of taxation have been increasing with high speed and the increasing speed of the costs and expenditure over took that of the tax revenue. It has been a very important phenomenon during recent years in China. People are generally concerned about the scale and growth rate of tax revenue, but unawareness to the efficiency. With the introduction and application of western economic theory in China, the principle of efficiency has been developed and fully utilized in various fields. The attention to the efficiency of revenue is also gradually raised. The problem of administrative costs attracts interest and attention from government decision-making, tax departments themselves and general taxpayer. The discussion keeps being an attention-getting issue increasingly. Controlling administrative costs has been a key of Chinese tax administration mechanism construction. This article was conducted in accordance with the author's years of experience in tax practical work, combined with the theories and methodology of economics, made a systematic and deep research on the problem of administrative costs from the prospective of tax administration mechanism. It made analysis of the reasons for high costing and it also put forward the guideline and policy suggestions. And the relative control measures are both practical also specific. Most of them are connected theoretical researches to tax practical work. In order to fulfill the goal of controlling administrative costs and maximize tax efficiency. And to intense the cost conception of tax authorities, decreasing the idea of"tax collection without cost", making the rule of tax efficiency.It consists of 3 parts: The 1st part, through the horizontal international comparison of the administrative costs between China and developed countries, successful experience and basic theories from foreign countries was exposed. It also introduced some basic theory of administrative costs, such as the conception, elements, and classification. The 2nd part introduced 3 rules of economic theory to judge whether the administrative costs is fit for the condition of a nation. Under this precondition, the study made an analysis of the major impacting administrative reasons for high administrative costs. It pointed out that the reasons are as follows: unreasonable organization allocation, unreasonable designing tax system, inefficient cost controlling and inoperative tax inspection. The 3rd part is the chief of the dissertation. The author puts forward the necessity, the difficulties and some relationships of controlling administrative costs. And gave some suggestions and measures from administration mechanism aspects: by strengthening tax legislation, by optimizing tax environments, by improving personnel quality, by improving cost consciousness of tax authorities and tax officials, by intensifying the reform of tax collection mechanism, by intensifying the supervision system, by taking full use of the professional service level of tax agency, by improving of the implementation of tax administration, by adjusting arrangements of tax organizations, etc. At last, the author drew a conclusion, that is: It will be considered that it is neither simply to decrease cost nor unawareness to the national condition. It will be a long and complicated course to be taken.