Research Of Improving The Collection And Management Of Chinese Individual Income Tax System

Individual income tax, a type of direct tax, refers to the tax imposed on the dutiable income of an individual. As the Chinese economy develops steadily, the people's living conditions have been improved accordingly. As a result, the scope of individual income taxation has been becoming larger and larger, and involving thousands of households inside. Now, the individual income tax is becoming the focus of people's attention.The significant function of individual income tax is to adjust the income distribution, which is also the focus of people's attention. Since people's abilities are different, their incomes are surely different. Those who have high income pay more taxes, and on the contrary, those who have low income pay less, which is a universally accepted principle. But in China, individual income tax is still weak in adjusting the income distribution. The individual income tax paid by the rich who possess 80% of the wealth of the society only accounts for 10% of the total individual income tax collected. There is a wide gap between the rich and the poor.The high income people in our country didn't become the main payer of the individual income tax. Because of the weak tax-paying consciousness and the high income people's various income outlet, different income transferring form,large number of cashtransactions, all of these restrict the strength of income tax administration to high income people. At present, the regulation and the tax-collection system are not founded, these influent the individual income tax function and result in a large number of individual income tax loss. Salaried class taxpayers become the main force of the taxpaying in Chinese individual income tax, and the individual income tax of most of the high non-wage income are not fully collected. Whether for the collecting of incomeor for the regulating of income distribution, the Individual income tax not only did not play its due role, but also did not show the fair of the tax burden. With the serious loss of individual income tax, the collection of individual income tax has become increasingly difficult to adapt to the development of the situation. Through deepening the reform of Individual income tax collection, to research on how to enhance the mechanism of Individual income tax collection, to improve the ability of regulating personal income, and to narrow the gap between the incomes of residents to alleviate the contradictions because of unfair distribution, has becoming issues of people's concern. This paper is to integrate the work of research and practice of the individual income tax, to enrich and improve theory by practice, and to strive to come up with scientific and practical results.Owing to the problems such as the major tax revenue coming mainly from the middle and lower classes, withholding agents'low quality of deducting tax from pay, and taxpayers'false filing etc, China's current individual income tax collection in many areas were not suited to the development of the situation. To strengthen the collection and management of individual income tax once again becomes a hot topic and an important part of the work of the tax revenue in the future. This paper focuses on analyzing the existing issues mentioned before, proceeding from the principle of individual income tax, in accord with the current collection and management of individual income tax,The proposal in this paper is to let the people be familiar with the tax law by increasing the advertisement, so as to raise the citizen's consciousness to pay taxes. A good many measures should be useful as follows: Speed up the modernization of collection of individual income tax means; establish the integration of the tax-credit management network; control strictly of the system of deducting tax from pay; implement the personal declaration and the declaration of a two-way system; strengthen the co-ordination of all sectors of society and tax system; strengthen the focus on the management of the high-income; levy individual income tax by the central government, increase the enforcement efforts of individual income tax law, inhibit the loss of individual income tax, and carry out the reward system.