Legal Analysis Of Tax Farming And Its System Perfection

Tax farming is an advance arrangement that is about collection-payment of taxation and is made by related parties by way of agreement, it is a contract about taxation, and it is characterized by contractual, practicability, and profitability. As an ancient efficacious system of tax collection, countries all around the world once paid close attention to tax farming, and it became a very important way of tax collection. Over several centuries of development and reformation, tax farming continually adapted to the different needs of different countries at different times, moreover, it always played an indispensable role within a certain range. Now in China, tax farming also became a very important way of tax collection, and it is often used in practice of taxation.In China, Tax farming phenomenon accords with basic principles of tax law and administrative law, for example, principle of legal tax, efficiency principle of taxation, principle of proportion, principle of credit benefit protection and so on. Furthermore, the existence of tax farming phenomenon has a great practical significance to China's tax collection and administration, it is not only conducive to smooth operation of imposing tax of the state, but also conducive to effective protection of taxpayers'rights. So tax farming should be defined as a statutory effective collection-payment way of taxation. But China's legal theory society still has not given full attention to tax farming, there is rare deep research on its meaning, nature and its characteristics, especially, its legitimacy. Additionally, there is no specialized law or regulations related to fax farming, and there are many defects and shortcomings in existing legal regime of tax assessment and fixed period fixed amount collection, that are closely related with fax farming. Thus, the operation of tax farming may lead to abuse of the power of tax assessment, destruction of the normal taxation order and so on. Lake of theoretical study and absence of legislative regulation are not conducive to dealing with the issues related to tax farming in practice of taxation, also hinder our country's legal construction of taxation. Thus, it is necessary to generalize the legal issues of tax farming. Now, the discussion of tax farming not only includes the discussion on"whether to farm", but also emphasizes the discussion on"how to farm". Concretely speaking, to study on tax farming system, firstly its basic legal issues should be cleared, for example, its meaning, its nature, its characteristics and so on, then, its legal system should be perfected from substantive law and dispute settlement mechanisms and so on. To perfect substantive law of tax farming should be started from the following aspects, first of all, its legitimacy status should be recognized; secondly, specific terms of tax farming should be set; finally, existing legal regime of tax assessment and fixed period fixed amount collection also should be perfected. Perfecting dispute settlement mechanism of tax farming is mainly due to the disputes arising from behavior of tax authorities. By the improvement and perfection of above aspects, the legal system of tax farming in China is to be built, avoiding its possible negative effects, maximizing its positive role.