Study On Imposition Of Estate Tax In China

As a tool to adjust the gap between the poor and the rich, estate tax is levied in many countries. Along with the development of reform and open-door policy in our country, the national economy grows rapidly and wealth of the society increase constantly. Simultaneously, gap between the rich and the poor expands day by day. The levying of estate tax can shorten the gap between the rich and the poor and ease up the social conflicts. This paper analyzes the necessity and feasibility of levying estate tax, then, the enlightenment brought by overseas estate tax systems, the difficulties of levying estate tax we faces currently, and the countermeasures we can take will be addressed. Based on the discussion above, the paper will put forward the design of the estate tax system in our country.This paper is divided into five chapters, as follows, the content of each chapter:ChapterⅠmainly introduces the purpose, the method, and the meaning of this paper, briefly summarizes the research on estate tax, both overseas and domestic.ChapterⅡstarts with the theory analysis about estate tax. First section has a discussion on the necessity of levying estate tax, using statistic data to describe the disparity of wealth distribution. Second section is about research on the feasibility of levying estate tax, with a conclusion that there have been suitable economic and policy conditions for the imposition of estate tax in China so far. Third section is the meaning that the levy of estate tax will bring to.ChapterⅢaddresses explanations aim at the suspects of levying estate tax. First section makes out we needn't worry that the estate tax will bring to capital flight. Second section illuminates that the deficiency of administration can't be the reason to oppose the imposition of estate tax. Third section points out that we should put more emphasis on policy objective than financial aim of the estate tax.ChapterⅣdiscusses the building of the estate tax system in our country. First section is the choice of estate tax system mode. Estate tax can be divided into three types, general estate tax system, estate tax subsystem and blended estate tax system; each one has its own advantages and disadvantages, according to our national present conditions, it's suitable to choose general estate tax system. Second section, by comparing and analyzing overseas estate tax legislations, the author gives suggestions about the formulation of some items of the estate tax system in our country such as taxpayers, levy scope, deduction items, tax rate and so on. Third section discusses the collection and management of estate tax. By drawing experiences from abroad and taking the situation of our country into consideration, the author puts forward feasible formulation of the declaration of tax, the forms of paying tax and penalties in our country.ChapterⅤpoints out the problems of levy inheritance tax in our country, such as the difficulty in defining the range of private property and evaluation of estate value, the legal loopholes of current legal system, and puts forward some reasonable strategies to make sure the estate tax institution of our country run efficiently.