Research On The Legal System Of Taxpayer’s Identification Number For Natural Person In China

Recent reform in tax system in China is to deepen the reforms in the field of tax and to gradually increase the proportion of direct tax revenue. It suggests that raising the proportion of direct tax is one of the important content of the reform in this new round of tax reform in our country. According to the arrangement, the structure of tax system will have a great change in the future five years. At that time, the proportion of direct tax revenue and the indirect tax revenue will be balanced. Two measures can be taken to achieve this goal. One is to establish a comprehensive and classification with the combination of personal income tax system gradually. The other one is to reform the real estate tax legislation. Both synthesis and classification of combining the individual income tax, or the residents’ housing property tax levy, emphasize on high income tax or property of natural person. It will be a big challenge for our country current tax collection and administration system. In order to ensure the smoothly of tax reform, we must take measures to solve the problems on the current tax collection and management system for natural person as soon as possible.It has great theoretical significance to set up the legal system of taxpayer identification number for natural persons. From the perspective of information asymmetry theory, the establishment of the system is good for improving the speed of the related tax information transmission, reducing the information asymmetry condition effectively. At last, it makes the tax authority to have the relative information, in the process of tax collection and administration on the collection and administration in the game in a relatively active rather than a completely passive position. From the implementation mechanism of system economics theory perspective, the system is a compatible with the incentive and constraint mechanism. The system has the favorable characteristics in the process of tax gaming, which is conducive to natural person honest taxpayers tax incentives. From the tax risking management theory and the theory of information resources management perspective, the natural person in line with the requirement of the system of taxpayer in admission taxpayer identification number must be used in the economic life, this kind of practice is not only beneficial to monitor tax sources, and to realize the standardization of the tax collection and administration and tax related information sharing between different departments. From the perspective of the theory of tax compliance is to improve and standardize the system for natural person, which is an important measures of tax management system at present, establish the system to reduce the natural taxpayers not intellectual and selfish tax compliance, and to improve natural taxpayers’ tax compliance. Establishing the system from the perspective of tax fairness, is conducive to be innovated from high earners partially hidden income, high income tax should be included in the scope of tax source monitoring, and promote the natural person between taxpayers tax fairness. Finally from the perspective of tax efficiency principle, to establish the system, the individual taxpayer identification number as information systematization management number or code, is not only beneficial to speed up our country in view of the natural person taxpayers tax archives information management of construction process, and to reduce the administration cost of the tax authorities, improve administrative efficiency. At the same time, the establishment of legal system of taxpayer identification number for natural person also has a certain practical significance. Setting up legal system of natural person taxpayer identification number, giving each person a unique and lifelong tax identification number, is good for cracking the tax authorities in China in view of the natural person taxpayers tax management bottleneck faced by law, namely to bestowing natural person through a tax ID code taxpayers’ related tax-related information, the establishment of the system can make the tax authorities by the taxpayer identification number to summarize the natural taxpayer information related economic activities, which helps to promote the level of the information management of the tax collection and administration in our country, realize "information tube tax". Around the individual taxpayer identification number, the legal system, from the combination of theory and practice of in-depth, systematic and comprehensive research, will good for solving some important problems in he construction of natural person tax collection and administration system of China. Meanwhile it has important theoretical significance and practical significance.The paper is divided into four chapters and three parts. The first part is about the research basis, including the first chapter and the second chapter. The first chapter is about the foundation of the legal system of taxpayer’s identification number for natural person. The second chapter is about the theoretical support of the system.The second part is the third chapter. It is about the international practice of the system. It is mainly from three aspects to introduce the practice of all countries. The three aspects include the number selection of the system, implementation mechanism of the system and the taxpayers’ right protection. Through comparative analysis, we summarize lessons from which our country can draw. Third part is the chapter four, which is about the construction of the system. This paper studies Chinese existing legal provisions on the individual taxpayers’ identification number firstly. Then it combines the existing tax environment to find out the institutional dilemmas in building the legal system of taxpayers’ identification number for natural person. Meanwhile, the paper will further research to find out the solutions, and finally propose a preliminary assumption about the legal system of taxpayers’ identification number for natural person in China.Through the research, it has formed four main conclusions:The first one is to analyze the necessity and feasibility of establishing the legal system of individual taxpayers’ identification number in China. In a new round of tax reform, individual taxpayers’ identification number system is a basic system in the tax collection and management system of natural person. The current individual income tax reform, construction of modern tax collection and administration system and the construction of social credit system require the construction of the legal system. Moreover, a series of central files are published recently, which are involved in the field of the reform of finance and tax. In addition, the policy environment, the revision of the tax administration law and the improvement of science and technology are favorable to establish the legal system of taxpayers’ identification number for natural person in China.The second one is to summarize the international practice on the legal system of taxpayers’ identification number for natural person. The paper is from three aspects, which includes the representation of the individual taxpayers’ identification number, the implementation mechanism of the system and taxpayers’ rights protection of the system, to carry on the analysis. The objects of the analysis are these countries which have established this system. From this analysis, the author summarizes the experiences of these countries in these three aspects in order to provide reference in establishing this system in our country.The third one is to summarize the current relevant regulations about individual taxpayers’ identification number in China. In combination with the current tax environment in China, it is to find out the the predicaments in building the legal system of taxpayers’ identification number for natural person. The author has tried her best to sort out all provisions relating to the individual taxpayer identification number in the form of tables. The analysis is found that the number Chinese relevant legal norms on individual taxpayers’ identification number are few. The level of these regulations are low. The content of these legal norms are disordered. This part also includes the problems in the application of the code and etc.The last one is to put forward a preliminary assumption to build the legal system of taxpayers’ identification number for natural person in China. In the process, we will have a lot of trouble, which includes the formulation and the application of the identification number. We will propose measures to resolve these difficulties, and further propose preliminary assumption on the establishment of the legal system of taxpayers’ identification number for natural person. First is to specify citizen ID number as individual taxpayers’ identification number in our country. Second is to strengthen the top-level design. Third is to perfect the incentive mechanism and punishment mechanism and tax-related information confidentiality rules, so as to improve the system of natural person taxpayers’ compliance.