Research On Taxation Problems About Illegal Income

Illegal income tax is a popular concern in the world. For a long time,the debate on the issue has never stopped. Currently, only a small numberof countries that do not deal with illegal income tax such as Britain, mostof the countries tax abou illegal income tax, such as the United States,Germany, Japan, Canada, Italy.In China, whether the illegal income can be taxed has not formed aunified point of view both in theoretical circles and in practice. Somescholars still adhere to traditional tax theory, advocate the taxable incomeshall be legal and illegal income is not taxable. Some scholars believethat illegal income is taxable, based on the principle of tax fairness, andstressed that the illegal income tax is not tantamount to admitting thelegitimacy of the illegal income. In practice, tax authorities used differentapproaches around the illegal income. Some tax authorities insist on taxto legal income, also have the practice of illegal income tax in society.which caused uproar in the community such as impose personal incometax on escort lady and impose the business tax on the choice fees. Practiceissued a challenge to the theory.In fact, there is no clear legislativesupport the illegal income tax, but did not absolutely negative, just makea more neutral formulation out of strict in our country.The paper begin with the discussion about the taxaxtion about illegalincome and definition related concepts.And then, discuss the theoretical analysis about illegal income tax through the basic principles of the tax.Introducing and analysising the foreign legislation and judicial rules todraw on at the same time.At last,exploring the status and existingproblems about illegal income tax in China, and solve problems on thebasis of the improvement of China’s illegal income tax systemrecommendations.Research on taxation problems about illegal income not only helps toimprove the basic theory of tax law and better guide the tax practice tosolve the problems that the theory and practice are out of touch, so it hasstrong legal and practical significance.