Study On Chinese Tax Expenditure Management

In the recent decade, the tax revenue in China has increased significantly. In the same time, the taxation expenditure of different levels of tax bureaus, which is the cost of tax revenue, has been increasing dramatically. Additional, there are big differences of tax expense incurred among different administrative areas. The large amount of tax expense has exerted negative influence to taxation efficiency. On the other hand, it may provide the hotbed of corruption. Therefore, it is of great practical importance of optimizing the expense incurred in tax collection. The optimization of tax expenditure structure could not only promote the comprehensive application of modern approaches of tax collection, but also improve the quality of taxation management, tax inspection and tax services. All of those can safeguard the tax payment in full and on time, and promote the stable growth of income tax as well. The accounting and expenditure management of taxation belongs to the governmental accounting and budget management system, so the measures of optimization tax expenditure structure can be widely applied to all governmental budget and financial management systems. This paper studies the tax expenditure related theories and empirical researches, finds out the main factors affecting tax expenditure and the important reasons for the high taxation cost, analyzes some of the controllable factors with some emphasis and then puts forward the recommendations of optimization expenditure.This paper is divided into four parts. The first part is the introduction. It introduces the meaning of the research, conducts a literature review, clarifies the main concepts and measurement used in the research and points out the main contents and study methods of this paper as well. The second part is "the analysis of China's current tax expenditure". In this part, using historical data analysis, the author analyses the main components, characteristics and factors of current tax expenditure. The historical data analysis also includes the lateral comparison among different provinces within the nation and among different cities within the provinces, and consists of the vertical comparison through the recent decade. All of the empirical studies reveal the problem of tax expenditure. The third part analysis the reasons behind the problem of China's current tax expenditure. It finds out the real reason through both empirical research and in-depth analysis. The fourth part is "Recommendations of improving tax expenditure effectiveness". Based on the actual situation, it puts forward the principles should be followed of tax expenditure optimization. Moreover, according to the main factors influencing expenditure, the fourth part provides specific recommendations to optimum tax expenditure structure.It has been proved that the tax expenditure can be controlled and optimized gradually. By comprehensive use of various measures, the optimized tax expenditure can benefit various aspects. First, it could make the tax expenditure more standard and improve the efficiency of capital use. Additional, it could make the tax expenditure toward to the positive change in both total amount and structure. Third, it could enhance the cost consciousness and saving consciousness to the decision-making level, management level and executive level. Moreover, it could promote the reform of governmental budget management and improve the administrative efficiency and make administrative work transparent.