The New Institutional Economics Of The Chinese Tax Administration

The institutions are defined as game regulations of a society by the New Institutional Economics,or a series of restrictions that decides the relationships between people.And the management of taxation,in order to guarantee the effectiveness of taxation,means whole procedures of the national income distribution,including decision-making,scheduling, structuring,coordinating and supervising,according the China tax law and regulations.The New Institutional Economics believed that a series of regulations which generated from the institutions is consisted of the formal institutions by the government,the informal institutions by the society and the executive organizations.No doubt,the institutional frame of tax system is composed of the above three parts,detailed in the formal provisions,and informal regulations and systematically executive organizations of the taxation managements.The study of the constitution of the tax system which is introduced into tax management,make the discussion question of this paper-the institutional structure of tax management-in another words-it is a necessity for the study to use a systematically demonstration in the above three aspects.Individual tax is a chief type of China tax institutions,and this paper would take the management of individual tax for instance.To do a comparison study between China and Western countries by recalling the decision process and evolution of the individual tax and contrasting present situation of that.,with conclusion that the construction process also implies the above three factors.After the year 1994,with a relatively developed systematical and integrated individual tax institutions,the total amount of individual tax collected has soared while some problems like the inequality in tax burden,relaxation of executing the tax law and a heavy tax evasion which occurred commonly and block the endeavor to realize the tax plan.Hence,the individual tax system has long been adjusted all the time appropriately aiming at the fore types of problems.In the cycle of execute-adjust-2^nd execute-2^nd adjust,with hope eliminating the problems,however,the outcome always be like even if one problem is settled,it would stage a comeback or new problem emerged in succession to the old problem,as a result,obviously the targets of the adjustments are not really desirable.As far as the present situations and the applied individual law,bad issues have also affected the three factors.Since the three problems stick together and triggered a systematically issue that this whole effectiveness lost and in short of cooperation of the entire institutional system.In order to make sure that the China individual tax effective and reach the targets,we should weigh the principle of tax regulations made by law the most,when designing the individual tax the equality should be taken into account.And achieves the rationality,democratic and the definition as far as possible;In the unofficial system aspect,it is clear about the direction;In the implementation machine-made aspect,enlarges the rigidity,strengthens keeps in balance,lift technique,guarantee validity.