Starting from explaining the related concepts of income and the theory of taxable income,this paper explains the necessity of defining the concept of taxable income,and analyses the theoretical and practical problems caused by the long-term neglect of defining the concept of taxable income in the reform of personal income tax law in China.In theory,the ambiguity of relevant concepts and the insufficient awareness of taxpayers in the current personal income tax law due to the unclear identification of taxable income;in practice,due to the diversity of personal income forms,the provisions of the current personal income tax law can not cover all taxable income,and the relevant tax documents are complicated by the document interpretation issued by the tax authorities to fill the loopholes.It is more likely to lead to the suspected expansion of the power of tax authorities.This paper attempts to use the theory of taxable income to analyze specific cases and solve the problem of the definition of personal income which has not yet been recognized as taxable income.Finally,in order to improve the current definition of taxable income in China,legislative suggestions are put forward.It is suggested that the concept of taxable income be gradually determined in the personal income tax law in the way of gradual reform.Specifically,this paper is divided into four parts:Chapter one is an overview of related concepts of income and taxable income theory.The first part mainly discusses the related concepts of personal income,the definition of gross income,net income,tax-free income and income exclusion,and analyses the relationship between these concepts.The second part is a brief introduction to the development and definition of three theories of taxable income,namely,the theory of concept source,the theory of net assets increase and the theory of market transaction.It also introduces the actual situation of the definition of taxable personal income tax system in Britain,the United States and Germany,which respectively apply these three theories,and evaluates the advantages and disadvantages of each theory.Chapter two is about the theoretical research on the definition of taxable income in the reform of personal income tax.The first part is to observe the reform of personal income tax system in China from the perspective of taxable income.In the current tax reform,the definition of the concept of taxable income is helpful to the expansion and distribution of fiscal revenue by individual income tax.Thirdly,through the functional orientation and reform development process of personal income tax in China,this paper explores the changes in the scope of taxable income after the reform and opening up,and tries to explore the theoretical and practical reasons behind it.The second part explores the problems of vague concepts and insufficient awareness of taxpayers due to the lack of the concept of taxable income in China.Chapter three is about the practical problems arising from the lack of the concept of taxable income.At present,the tax authorities increase the scope of taxable income under the current personal income tax law by issuing documents continuously.This leads to the complex identification system of taxable income and the problem of excessive power of tax authorities.Then it analyses the current situation of three kinds of specific personal income forms,such as damages,live reward income and student scholarship,and tries to solve these specific problems by analyzing the relevant theories of taxable income.The fourth chapter is to put forward legislative proposals for the improvement of the concept of taxable income in China.First of all,we should introduce gross income as taxable income,which is in line with the direction of the reform of the personal income tax system in China,and is conducive to expanding the tax base and realizing the principle of energy taxation.Secondly,it is suggested that the theory of taxable income should be combined with the theory of increasing net assets and the theory of market transaction.Finally,the concept of taxable income is defined in legislation,and it is divided into three stages to improve the concept of taxable income by gradual reform. |