Withholding System Underflow Payment Of The Tax Relief Mechanism

This article is mainly aiming to discuss the contraction that, if over-paid refund should be claimed by the taxpayer or the withholding agent while the tax payment actually bear by the withholding agent. The existing problem, such as the legal subject chaos est., due to the over-paid tax refund in practice under the withholding and remitting policy, will be analyzed in case studies. By elaborating the principle of tax debt relationship, it is to ascertain the over-paid tax is part of unjustified benefit theoretically, and the taxpayer is authorized to claim tax refund. Under the withholding and remitting policy, the withholding agent, statutory commission agent for the tax authority, exercise the public power to withhold and remit that is authorized by public law, as a legal subject of private law. Thus, the withholding agent has no direct and substantive relation with the taxpayer in law. Therefore, even if the tax payment is claimed by the withholding agent in practice, the right and obligation is still belong to the taxpayer and the tax authority in the over-paid tax relationship. The author attributes related suggestions, on how to consummate prescriptions of over-paid tax refund under the withholding and remitting policy, from the aspects of legislation and practice.