The Research About Dilemmas And Countermeasures Of The "Tax Control Via Invoices" Mechanism In The Local Tax Collection And Administration

For a long time, the mechanism of “tax control via invoices” has been playing avery important part in the taxation of our country, and even more important in the localtax collection and administration. The main categories of tax collected by local taxdepartment, including business tax, enterprise income tax, individual income tax, andetc., are all count on the use and management of invoices to verify their taxable income.In the People’s Republic of China, due to the intervention of state power, the invoiceshad gradually turned from ordinary business receipts into “tax control” tools, becomingsomething like tax vouchers. However, the illegal and criminal acts about invoice hadbeen increasingly rampant during the above course, which cause the loss of a largenumber of national tax revenues. In that case, the author hope to find proper andpracticable solutions through analyzing the rationality and limitation of the “tax controlvia invoices” mechanism applying in the local tax collection and administration, so as toprovide helpful suggestion and reference for the reform and development of the localtax collection and administration in future.Beginning with the search for the roots of the idea of “tax control via invoices”, theauthor analyzed the rationality of its existence, and then systematically hackled itsactual application in the local tax collection and administration. Base on those results,the author rethought and analyzed the dilemmas of the “tax control via invoices”mechanism and put forward the corresponding strategy in the end. During the process ofdiscussing and analyzing, I adopted the methods of theoretical analysis and empiricalanalysis, the researches of literature review and Data-statistics, and also the comparisonof china and foreign country, by means of which the innovative and exploratory studieswere carried on as follows:1. Learning from history, the author brought forward and systematically analyzedthree main sources by which the idea of “tax control via invoices” was generated.2. By summarizing and analyzing the present situation of the employment andadministration of invoices, and the application of “tax control via invoices” in eachmain local tax categories, the author thoroughly investigated the effects and influence ofthe “tax control via invoices” mechanism in the local tax collection and administration.3. Combining local taxation practices, the author drew a flow chart of the “tax control via invoices” mechanism involving tripartite relationship between invoicingparty, drawee party and the local tax department. With the integrated study of thescience of economy, tax practices and algebra, the running process and design defects ofthe “tax control via invoices” mechanism were vividly showed.In my opinion, the “tax control via invoices” mechanism had given too much forinvoices to bear, causing the whole mechanism overwhelmed and riddled with errors. Itslimitation in the local tax collection and administration is destined from the beginning.Only when we restored the nature of invoices to business receipts and take otherapproaches to guard and assist taxation that we could eventually achieve what wewanted.