Study On The Legal Issues Of Kind Benefits Taxation

Last year,"Moon-cake tax" event at Mid-Autumn Festival triggered widespread controversy, reflecting the blind spots of cognitive or confusion points of view of people on benefits in kind income taxation, one of the important reasons is the lack of income taxation of benefits in kind in China’s legal system. Income taxation of benefits in kind is tax on workers income from the enterprise or unit specific things that can play a material effect. On the one hand is sense of blame on the taxation of benefits in kind income, on the other hand is requirements of the rule of law of society rule by the law, two aspects of the same thing seemingly contradictory is essentially uniform. Under the conditions of market economy, a growing number of social and economic behavior related to tax problems,The continuous development of the rule of law will inevitably promote the Taxpayer Awakening, people will pay more attention to their own interests, and pay more attention to the realization of tax fairness Benefits in kind income taxation is the reflect of embodiment of the principle of equity of taxation.At this stage,form of the income of Chinese residents is not only in monetary terms, there are benefits in kind, stake, options, and diversification other forms of revenue. In order to reflect the fairness of the tax must be fully taxable on a wide variety of personal income, to avoid loss of revenue, strengthen the social function of adjustment of income distribution gap of the personal income tax.The current personal income tax revenue comes mainly from the middle and lower classes, which is contrary to the original intention of the individual income tax settings. In-kind benefits have a positive role to motivate workers and enhance workers cohesion, but its negative effects is very clear, It is not conducive to the formation of the normal order of market economy. Benefits in kind income is mainly concentrated in high-income group, the withholding agent withholding quality is not high, the taxpayers’inaccurate reporting, collection and management efficiency of the tax department is not hight, cause serious loss of benefits in kind income tax revenue, weakening the regulatory role on income distribution of individual income tax. This stage, There are many vacancies and loopholes on the benefits in kind income taxation,it becomes an important means of tax evasion and avoidance, income in-kind benefits are not clearly defined, the Taxpayer is not clear, the benefits in kind income tax system is not perfect and so is not conducive to the operation and administration of the income taxation of benefits in kind.