Analysis Of The Advance Tax Ruling System

Advance tax ruling system arising from western countries' tax practice.In foreign countries,after years of practical development and theoretical research,this tax system gradually formed a more perfect theory and system.And this system has became a very important link in the tax law system of most countries.In China,the theory research on the advance tax ruling system has been carried out just about ten years ago,and specific practice has only a few years,thus,the advance tax ruling system lack of theoretical and institutional environment in China.The advance tax ruling system is the general term of the legal norm that the tax authority makes the determinate judgment on the tax law application result of the taxpayers' future tax affairs on the basis of the taxpayers' application.The advance tax ruling system comes from the demand of taxation legal principle.It extends the connotation of tax fairness principle,conforms to the essence of tax efficiency principle,and conforms to the principle of taxation social policy principle,and is consistent with the basic principle of tax law theoretically.From the practicing side,advance tax ruling has both positive effects and negative effects.On the one hand,the advance tax ruling system can reduce tax uncertainty,save the cost of both collectors and taxpayers,strengthen the concept of taxation service;On the other hand,advance tax ruling system tend to bring transaction information leakage risk and the risk of national tax losses.But in contrast,the advance tax ruling system's positive effects are more important,and its negative effects can be avoided by reasonable methods.Therefore,it is necessary to establish advance tax ruling system in China.The establishment of tax ruling system in China should be based on the experience of extraterritorial experience,should pay more attention to the localization of this system,so that it can become a legal system which can adapt to the specific legal environment of China.In China's current tax system,the scope of the advance tax ruling system should be limited to taxpayers major and complex transactions in the future,the taxpayer request a ruling which will base on these affairs' application of the tax law to the tax authorities,the tax authorities will give a ruling if these affairs can be ruled and are commensurate with the scope of the system.The power of advance tax ruling should be given to the administrative organs responsible for the tax collection and management,besides,this function should be undertaken by both the central and local administrations.The taxpayers who apply for a advance tax ruling should provide the tax authorities with the materials required for the application and pay the application fee.The tax authorities shall make a ruling within the prescribed time and base on the taxpayer's submission materials.The result of the advance tax ruling is not binding on the taxpayer,whether the taxpayer's transactions or the taxpayer's taxation is not bound by the result of the tax authorities' ruling.On the contrary,advance tax ruling system is binding on the tax authorities in principle.The tax authorities' taxation should follow the result of the advance tax ruling unless the result of the ruling no longer has a reasonable grounds on the basis of major changes in the objective circumstances.Disputes arising from application of advance tax ruling usually do not permit reconsideration or litigation,but taxpayers can request relief according to other specific laws if the tax authorities clearly contravene the law.If the tax authorities have some unregulated behaviors in the exercise of advance tax ruling,they will not only damage the rights and interests of taxpayers,but also causes the running off of the state's revenue,so it is necessary to establish effective oversight measures.The supervision of the advance tax ruling system is the supervision by the public of the acts of the tax authorities in the process of the advance tax ruling.The supervision of the advance tax ruling system should base on the publicity of the ruling result,emphasize power movement transparency and strengthen the social supervision.