A Study On The Cause And Solution Of The System Infringement Of Land Value-added Tax

Since the beginning of the new century, the real estate industry in China has been flourishing. Under the background, many related taxes have been drawing the attention of real estate enterprises for the following reasons. First, land value added tax is important measure for the country to adjust and control the real estate industry. Second, its tax source is relatively stable. Third, the government can use it to regulate the distribution of land income and land resources. at the same time also can adjust and control of land resources. However, the land value added tax system has some flaws, which leads to the difficulty in the regulation of real estate market and institutional infringement of taxpayers to some extent.In the first part of this paper, the latest research of domestic and foreign institutional infringement is summarized. The principles of the value-added tax and the characteristics of the institutional infringement of land value-added tax is also analyzed. On the basis of the theories of new public service and the protection of the rights of taxpayers, the causes and solution of institutional infringement of land value-added tax are discussed. By the method of literature research, case analysis and interview, the manifestation of the institutional infringement is studied, including the unscientific design of tax system, complex methods of tax collection, unscientific tax basis and the lack of seriousness. The causes of the system flaws are then discussed, including bureaucracy, taxpayers’ weak awareness of right protection, land finance in the tax-sharing system, and the lack of error correction mechanism. In the end, using the experience of Italy and Taiwan’s land value-added tax system, the countermeasures of curbing institutional infringement is proposed, including taxpayer-first concept, management decision of system formulation and system implementation.