Events. "5.30 Stamp Duty Law Thinking

On May 30th, 2007 before dawn, in order to suppress the overheated stock market, Ministry of Finance, State Administration of Taxation announced the rate of stamp duty of stock bargain to be raised from 1‰to 3‰with a piece of notice. This legislation act caused the stock market steep fall, and was intense questioned by the general public.The paper mainly analyzes the illegal and unreasonable places of this event from legal perspective and puts forward corresponding suggestion on the basis of it to perfect our system of tax legislation system. This paper is divided into three parts:The first part looks back the event of "the adjustment of the stamp tax in May 30^th". It mainly reviews the whole event, and points out that it has arose broad discussion. Then on the base of it, it brings out the theme of the paper here, namely the analysis on questioning of extensive taxpayer from legal perspective.In the second part, the paper carries on legal analysis to the event from three aspects. Firstly, the "the adjustment of the stamp tax in May 30^th" deviated from principle of legality for tax. According to China's related legal rules and 5.30 adjust-notify "through The State Council authorize", the adjustment of the stamp tax could be considered as the authorization of the State Council by the Ministry of Finance and the State Administration. That did not contradict with our tax laws, administrative statutes in operation. But, principle of legality for tax requires that the taxation elements such as the tax rate must be and only be ruled in law by legislature. Therefore, the turning authorization of the State Council and the notice form of legislation had gone against principle of legality for tax in this event. Secondly, the "the adjustment of the stamp tax in May 30^th" deviated from the justice of the tax legislation procedure. "The adjustment of the stamp tax in May 30^th" notice was secretly established by Ministry of Finance and some other government agencies, and was released at 0 a.m. No public participated in the establishing process. The justice of the tax legislation procedure needs to be impartial and rational. But "the adjustment of the stamp tax in May 30^th" had gone against the procedural legal, procedural open and the full participation of taxpayers that procedural justice demand. In addition, the time of the adjust decision to issue was also in violation of tax legislative procedural justice. Thirdly, "The adjustment of the stamp tax in May 30^th" deviated from tax legislation in good faith. As early as May 22th, Ministry of Finance and State Administration of Taxation denied the rumor that China was going to increase the rate of stamp duty of stock bargain. The adjust act was considered that the government was not going back on its word in good faith. The writer carries on analysis it from the angle of tax legislation in good faith and points out that tax legislation should follow the principle of good faith. But the legislation act was the injury of the reliance of taxpayers, and for such resulting damage, the legislature didn't undertake corresponding responsibility.The third part gives some recommendations. According to the second part of the illegal and unreasonable analysis of "the adjustment of the stamp tax in May 30^th", the writer puts forward the suggestions to perfect our tax legislation system and prevent similar event occur from three aspects. Firstly, we should establish principle of legality for tax and improving the limitation of the tax legislation. Next, tax legislation transparency and openness should be improved and the system of tax legislation hearing should be established. Finally, we must enhance the honesty of the legislation.