Analysis On The Application Of The Principle Of Substan Tial Taxation

According to Article 35 of the law of the People's Republic of China on the administration of tax collection,if a taxpayer fails to fulfill his tax payment obligations within the prescribed time limit,the tax authorities shall have the right to determine the amount of tax payable.In determining whether the transaction behavior of taxpayers produces tax liability,tax authorities mainly view the economic transaction behavior between taxpayers from the perspective of tax collection and management,not limited to the superficial legal form of transaction behavior.Although there is no obvious illegal act in the form of civil legal acts between the parties,in the consequence,if such civil acts cause obvious damage to the financial interests of the state,the tax authorities have the right to check the economic acts of the parties according to the legal procedures.Similar to the case of "morality",the judgment of the supreme law in the case of Jianwei also clarifies that the tax authorities can make a qualitative analysis of the same legal act which is different from that of the civil law based on the principle of "substantial taxation" and "quantitative taxation".However,the supreme law in the judgment documents specifies how the tax authorities should exercise this power and how the people's court should make the facts to the tax authorities It was found that there was no reasonable explanation for the review.Such a judgment not only respects the tax authority's right to verify tax revenue,but also destroys the stability of the original civil legal relationship,and in fact infringes the private property rights and interests of taxpayers.As thelast line of defense to protect the legitimate rights and interests of the parties,the judicial judgment should make a final determination of the relevant legal facts,so as to play the real role of judicial review.Otherwise,the administrative power with the nature of expansion will lead to the conflict between the protection of the legitimate rights and interests of taxpayers and the protection of national tax interests.For this conflict,the core dispute lies in the application of the principle of substantial taxation.As a basic principle of tax law,the "principle of substantial taxation" has been widely recognized by the tax law theory and practice circles.This principle is a kind of taxation method that can reflect the economic essence more,and is more reasonable in theory.However,in order to facilitate the tax collection and management,prevent the abuse of power and protect the property rights and interests of citizens,the application of this principle should generally have the relevant legal basis,but in the legislative and judicial level of the "substantial tax principle" in China,there is no regulation on how to apply it,which will lead to the excessive expansion of administrative power and damage the legitimate rights and interests of taxpayers.In the supreme law judgment of Jianwei case,on the one hand,it affirms that the tax authorities have the power to redefine civil legal acts,on the other hand,it limits the power of tax authorities to adjust.Although it is through judicial advice,it can also be seen that the supreme law wants to clarify the applicable standards and power boundaries when it applies the "substantial taxation principle" to tax authorities for tax verification.Through the analysis of Jianwei case,this paper also discusses the applicable rules for the taxation administration to use the principle of "substantial taxation" to determine the nature of civil and commercial legal relations,and what kind of standard of proof should be adopted by the judicial organs in the judicial review of the taxation administration to use the principle of "substantial taxation",hoping to find a reasonable solution Decision path.