Tax Jurisdiction Legal Issues

China is implementing a new round of tax reform, straightening out the relationship between central and local governments, improving the taxation system below the provincial level is the focus, underneath the financial rights are the direction, it is also involved other important issues such as financial democracy, against this background , this paper has a brief discussion of the legal issues of the allocation of the tax power. The text is divided into four parts:The first part: The elementary theory of tax power and the allocation of tax power, we must define the tax right firstly, because the concept of the tax right proposed freely many years, but scholars have never used it in a unified sense, the meaning of the tax right has never achieved a mutual recognition. The paper first defines the tax right authority as the government's unilateral right to levy taxes. On this basis, the author considers it is more reasonable to define tax power from the running of the taxation power movement's angle, there are three powers involved in the movement process: legislative power of tax; collection and administration power of tax; distribution power of tax. The study of how to allocate them becomes the focus of this paper. The tax power allocation can be dividing into the crosswise division and the vertical partion.vertical division of power refers to the legislative power of tax as well as collection power of tax, distribution power of tax. But on crosswise mainly refers to the legislature and administrative organ's in legislative power division. After the clear definition, I focus on the theory of the allocation of tax power from the perspective of fiscal decentralization and constitutional theory. This will give us solid theoretical foundation for our concrete reform.The second part: the international inspection of the allocation of tax power and uses for reference. Through the inspection, we may discover that there are three kind of tax power allocation pattern: the decentralization, the moderate centralism relative decentralization, the centralization. Certainly, this was in the relative significance. No matters which pattern, it basically can obtain better implementation in the representative country, the reason, besides adapts own national condition, another important attribute is the governance tax power allocation standardization, the legalization. This should be the greatest source of inspiration for us. However, we can see that from centralized to decentralized type of is a trend of reform, development-oriented authoritarian countries have been actively engaged in the reform of decentralization and local self-exploration in recent years. China has special conditions of course, but this species of the general trend is irreversible, we should also be responsive to this trend.The third part: the present situation and existence insufficiency of our tax power allocation. After a brief discussion of the history and current situation of the tax power allocation , the paper focus on the existence deficiencies. First of all, the government level are excessively, directly decide the difficulties of tax division; the governance, the property rights, the tax power allocation are not coordinated, not standard, not have the legalization; Then elaborate the respective division deficiency of legislative power of tax, collection power of tax, distribution power of tax separately. Tax legislative power is too concentrated, distribution power of tax is mainly the categories of taxes divided unreasonable, collection power of tax is the right of cross-collection authority led to the country, increasing the conflict between the Government rent. In the course of discussion, the paper also addresses the issue of democratization of the legislature; because the tax on the legislative power of vertical and horizontal focuses of the executive is a departure from democracy.The fourth part: The proposals on improving the tax power allocation in our country. To address above problems, first of all, I raise basic principles on tax power allocation that should be adhered to. Then for excessive levels of our government, I raise that the financial levels should be compressed and three levels of government's financial framework should be established, that is, we should continue carrying out the reform of the "County managed by province "and " Finance of township managed by County". Then, for the non-standard and asymmetric on the allocation of the governance, the property rights, the tax power allocation, I propose that we should allocate them on legal form. Then I state the advice to perfect the power of tax legislative, the power of tax distribution, the power of tax collection and management. First of all, we must give some tax legislative power to local, which is the core of decentralization. Usually it is very important that the local have their taxes and tax rate setting authority (not the tax base). But at the same time, we should strength the bound of the system. On the power of tax distribution, it is necessary to regulate the allocation of taxes, so that taxes return their position by their nature. As far as possible, the share tax reducing is a direction, which will reduce the bargaining power between the governments and clear the government rights and property rights .On the power of tax collection and management, in view of the dispute growing trend between country and local and the large cost of tax collection, I propose to merger the country tax and the local tax.This article also raises the protection of democracy in the course of allocation.Underneath the tax power itself as well as to administrative organ's authorized legislation is strict norms of respect for democracy.