Innovative Research On The Legal Regulations Of Taxation Management

Finance is the mother of clean government while taxation is the source of finance. As an important part of the economic system and superstructure, Taxation Law is the bridge that connects government and market. Enacting and implementation of the Taxation Law are important means for government to interfere with the market. It is through Taxation Law that the government influences enterprises as well as consumers, enabling the ‘Visible Hand’ of government and ‘Invisible Hand’ of market to function upon the economic society as a whole. Procedural law is the prerequisite of effectively implementing substantive law, which is the same in the Taxation Law, for without secure protection in the management system of levying, well-organized taxation arrangements cannot necessarily achieve the expected result. The now existing Law of the PRC on the Administration of Tax Collection was revised in 2001. With the changes of domestic and international situations and the breakthroughs of technological methods over the past decade, the current management system of levy and taxation is contradicting with the basic needs of reality. The Legislative Affairs Office of the State Council announced the Draft Revision of Law of the PRC on the Administration of Tax Collection(Consultation Paper) on January 5th 2015, soliciting for public opinions, thus setting in motion the new round of Law Amendments. Up till now, it is necessary to conduct studies on the related principles of levying and administering taxation, thus to provide ideas and advices for the third revision of Law of the PRC on the Administration of Tax Collection.The legal regulations on administration of taxation refer to daily actions, measures and regulations of taxation performed by the taxation office. Confirmation, collection and inspection of taxation cannot proceed successfully without effective management regulations of taxation. Quality of the legal regulations of taxation management directly affects the operation of the procedural law of taxation and furthermore, affects the effective implementation of the substantive law of taxation. Therefore, perfecting the now existing legal regulations of taxation management is the ‘fundamental construction’ of revising the Law of the PRC on the Administration of Tax Collection.The Third Plenary Session of the 18 th CPC Central Committee pointed out in the Decision that: ‘Establishing the China(Shanghai) Pilot Free Trade Zone is a major step taken by the Central Committee of CPC to promote the reform and opening up under the new situations.’ It also mentioned ‘to deepen the reform on finance and taxation structure’. Therefore, constructing Shanghai Free Trade Zone is the structural innovation created under the background of ‘to deepen the reform on finance and taxation structure’, targeting at strengthening economic cooperation with other countries, promoting the development of industry-shifting, advancing the transformation of governmental functions and implementing market management models of deepening reform at overall levels. The reform of Shanghai Free Trade Zone must be able to be replicated and promoted and the significance of the innovation of regulations outweighs its significance in driving the economy. To study from the view of Shanghai Free Trade Zone applies with the Central Committee’s spirit as well as the actual needs of social development in China.As a procedural law, the administration regulation of taxation must take the responsibility of securing the effective implementation of substantive law of taxation and at the same time qualifies the basic requirements of Principle of Legal Prescription of Taxation and Principle of Justification of Taxation. Specifically speaking, it should not only provide practical evidence for the revision of Law of the PRC on the Administration of Tax Collection within the Shanghai Free Trade Zone, but also serve the construction of the ‘Two Centers’ in Shanghai. The key to achieve these two goals is to accurately differentiate the relationship between the government and the market. Considering the existence of problems such as government interfering too much with the market, delimitation of properties, imperfections of the protection systems, the limitations existing in the market management and pricing mechanism and capital market developing sluggishly,utilizing the decisiveness market plays in the resource allocation,emphasizing the government’s public functions in social life and gradually developing an overall and complete market system should be necessary to accurately differentiate the relationship between government and market in current Chinese society.The reform and innovation of legal regulations of taxation administration must follow certain principles when they are being designed specifically. On a macroscopic view, according to the requirements from ‘Speeding up the process of shifting governmental functions’ and ‘ To promote national management system and modernization of management abilities’ mentioned in the Third Plenary Session of the 18 th CPC Central Committee Decision, we should follow the Central Taxation Principle as the guide to diminish the interference taxation has on capitals and to avoid the overload of taxation We should use the systematic principles of taxation reform as the guide to differentiate the boundaries of taxation equality and taxation preferences and to avoid the erosion which international taxation has on domestic taxation. On a microscopic view, according to the theory of taxpayer’s obedience, we should follow the principle of taxation services as the guide to create a service-driven taxation management model, and to strengthen the protection for the fundamental rights of taxpayers under the guidance of principles of protection of taxpayers’ rights.The legal regulation of taxation administration in Shanghai Free Trade Zone has progressed in many aspects such as taxation registration, taxation report, invoice management and taxation services, etc. but such problems as insufficiency of information, lack of convenience in the taxation management and insufficient service system still exist. As an exemplary window for reform, Shanghai Free Trade Zone should speed up its pace and realize its actual system innovation. Firstly, using ‘Big Data Technology’ to enhance the management efficiency involving the taxation information, including using big data technology to create collecting methods of taxation information and combining the big data resources to establish a shared platform of the taxation information and to develop the big data algorithm and optimize the economy analysis models. Secondly, learning from the ‘negative list management’ experience management procedures, including making the ‘negative list’ of the power and making sure the boundaries of the powers of taxation office and make the ‘negative list ’ for the credit of enterprises and identify the key inspection object. Thirdly, introducing the ‘managing state affairs according to law’ to establish the service system of taxation, including an overall legal system for services of taxation and establishing the security system of taxation services and perfect the examining systems for taxation services.The innovative parts of the thesis include: first, complying with the general trend of the transformation of the governmental functions and combining the hot issues of the reform of current taxation regulations, the author introduces advanced technological experience and management ideas in other areas to give advice on the current legal regulation of the taxation administration. Second, using the combined method of comparative study and general analysis, the author inspects the legal regulations of other countries and regions and provides references for future reforms. However, because of the time limitation and difficulties in searching for information, the thesis still has many imperfections. The data most comes from the internet and lacks actual research and the inspection on foreign systems mostly rely on the introductions by other scholars and lack the original materials as evidence.