Consideration On China's Tax Agency System Development

Generally taxation agency is explained an action that tax agent accepts the commission of tax subject and is commissioned to deal with the tax related affairs in the legal way. It plays a significant role to develop China's tax agency, especially for the development of socialist market economy to transfer the management function of tax authority, reduce the cost of paying tax, and keep the tax work orderly develop.Tax agency experienced the periods of government host, rectification & standardization, reorganization and marketing operation. According to the data from China Tax Association, there're 86,714 registered tax agents in China and over 4,000 tax agencies till the end of 2009. Tax agency has grown into a new industry of social agency. However, for the short time of taxation agent services of China, the services are not in the very high level, which will not balance with the huge taxation agent market. In the developed countries and areas, taxation agent market has been very accomplished. According to the statistics, over 85% enterprises and 30% personals commission the taxation agencies to deal with the tax affairs in Japan. In the United States, the numbers are 50% and nearly 100% separately. But only 9% displays in China which is a greater disparity with the developed countries.The big gap of over 90% in the market displays the unbalance between market demand and supply of the taxation agency market. Still many questions are urgent to resolve. I try to start from the theory of supply and demand which is one of the basic rules of market economy and by analyzing the current market supply and demand of taxation agent industry, to find out the underlying reasons of effective demand deficiency, market supply deficiency, and unbalance of supply and demand.The paper includes six parts. The first part explains the background and significance of taxation agency research as well as the agency, taxation agency, and the rules related. The second part is to analyze the supply and demand theory. The third tells the current situation of supply of taxation agency market. The fourth part of the tax agency market supply is analysis. The fifth part puts forward the suggestions for the problems in the current taxation agency market. And last is a case of a tax accountant office.In this paper it's considered a right foundation for the agency market development to make the correct policy direction. The paper also concludes the necessary way to develop the agency rules lies in the perfection of legislation, the promotion of taxation agency, the legal environment and the bigger demand of agency market. It suggests standardizing the market management order, reinforcing the agency organization, improving the professional quality, enlarging the business scope and actively increasing the effective supplement of taxation agency market.With the help of my work position, I've read and searched much tax authority material during writing this paper. I also wrote my own work experience and interviewed some taxation agency staff. All those are hoped to make this paper more reliable.