The Construction Of Advance Tax Ruling In China

The Advance Tax Ruling system was first designed in Sweden in 1911,which was an internationally accepted and mature tax management system.The Advance Tax Ruling system is originally designed to improve the certainty of tax law,which protects taxpayers’ rights and interests.Under the background of rapid economic development and tax law becoming increasingly complicated,the ambiguity and uncertainty of the tax law make it impossible for taxpayers to predict the tax consequences of their economic behavior,to a certain extent,contrary to the statutory principle of taxation,and the traditional methods to explain tax law cannot effecttively solve the problem of tax law uncer-tainty.As an exotic system,the Advance Tax Ruling was written into “Revised Draft Tax Collection Management Law(Draft for Comment)” in 2015,which was first formally appeared in China,but was not approved by the legislature at last.The State Administration of Taxation in China has been conducting exploration and practice in recent years,and at the same time the tax authorities in various regions have also been launching pilot in the innovative ways.However,in the course of practice as mention-ed above,the tax authorities lacked of systematic ideas and misplaced the system,leading to a suspicion that the system was alienated into a tax planning tool,which seriously deviated from the original value of the Advance Tax Ruling.It is worthy of our profound reflection and positive countermeasure research on how to promote the process of constructing the Advance Tax Ruling,and how to make it seam-lessly and harmoniously with Chinese national conditions.By the research methods of law and other disciplines,this paper attempts to discuss the local construction of the Advance Tax Ruling from the perspective of necessity and feasibility.This paper accurately defines its concept,deeply analyzes of its essence and its unique legal values,which leads to the discussion of the necessity of system’s localization.Next this paper discusses the localization of the Advance Tax Ruling from the three dimensions,which include economic foundation,legal basis and social foundation,leading to the discussion of the feasibility of system’s localization.Then this paper introduces the practice situations of the Advance Tax Ruling in China and the systems designed in foreign countries,in order to perfecting the system design of national construction.Through the critical absorption of traditional research results,this paper combines the two interpretation perspectives of tax law interpretation and administrative commitment,and refines the essence of tax booking customization as “an administrative commitment centered on tax law interpretation”.This paper explains the conditions and foundations of the system construction in China from three different dimensions,broadening the discussion perspective of the system construction.In addition,basing on the four major variables,which affect policy’s implementation,the paper will conduct a rational and transparent investigation on the practical defects of our nation,that can provide new ideas to how to make the system come true and improve the development of institutional reform and the “Belt and Road” cooperative co-construction initiative.