Definition Of Tax Subject

The preciseness of definition of tax subject is tightly connected to the credit of taxation as well as the distribution of rights and obligations between tax subjext and tax authorities.Take VAT and EIT as examples,tax payer for the same sort of tax has different legal forms under different historical conditions,such as subsidiaries,legal persons and conglomerates.Meanwhile,tax subject for different categories have different definitions.This dissertation is based on legislation and analyses the reason for complexity in classification of tax subject.It also analyses the difference between tax subject mechanism and the legal subject of civil law.Finally,it comes to settle a general standard for the definition of tax subject.Below is the roadmap of this dissertation:The first chapter introduces difference in definition of tax subject for different tax categories and their influences.Legislation of VAT has regarded subsidiaries as independent tax subject which can not only increase the expense of audition and bills but also lead to incompatibility of sales and withholdings on VAT between companies and its subsidiaries which may influence the cash flow of the company.If alternatively subsidiaries are regarded as the tax subject for EIT,this can cause failure to balance of loss and gains.If partnership is regarded as the tax subject of VAT,it shows the status of partnership as equal participants of economic transactions,which nevertheless lead to repetition in taxation.That conglomerates are regarded as tax subject of VAT and EIT can to some degree simplify the registration mechanism for taxation,but it also brings challenges for calculation of tax base.The second chapter discusses the reason for difference in definition of tax subject.That subsidiaries are regarded as tax subject of VAT is because of territorial taxation and division of tax sources.The reason for tax subject of EIT is that organizational forms of enterprises are not well established.In order to guarantee taxation revenue,"independent accounting" is treated as the standard for tax subject of EIT.The reason why partnership is treated as tax subject of VAT is that VAT is a sort of circulation tax based on contracts.The reason that conglomerates is regarded as tax subject of VAT is based on characteristics of neutrality of VAT and that conglomerates are regarded as tax subject of EIT is mainly based on economic connection within a conglomerate.The third chapter discusses difference on systematic construction of taxation and civil law.The writer holds the opinion that there are three aspects of differences:firstly,mechanism of civil subject is based on standard of right while that of tax subject is based on standard of obligation;secondly,mechanism of civil subject is based on independence of responsibility while that of tax subject is based on taxable items;thirdly,registration mechanism for civil subject is designed for transactional security while that of tax subject is for administration of tax base.The fourth chapter discusses general standards for tax subject.There are many factors that have influenced the definition of tax subject,such as substantial taxation,economical collection,division of tax revenues,industrial policies,etc.Reasonable standards for taxation should reflect the ability to pay of tax subject.There shall be direct connection between the ability to pay and taxable items.Calculation for most tax base should be appraised via quantity and value.,as legal forms of tax subject shall not influence the judgment of ability to pay,tax subject for such tax categories should be defined via tax collection standards.As calculation for VAT and EIT is rather complex,the writer holds the opinion that the definition of tax subject should be based on mechanism of civil subject in order to balance the legal and economic elements.The tradition of treating subsidiaries as tax subject should be abandoned and the informational standard for corporate finance should be improved and conglomerates should be treated as tax subject.