Research On The Scope And Effectiveness Of Tax Advance Rulings

Advance tax ruling has been widely accepted by tax administrations around the world,as an interpretation tool to solve the uncertainty of tax law.Advance tax ruling is a procedure that allows taxpayers to achieve certainty concerning the tax consequences of a contemplated transaction.The Law of the PRC on the Administration of Tax Collection(draft for comments)first introduced the system of advance tax ruling,but this time it failed to be incorporated into the law smoothly.The main causes lies in the failure to reach a consensus on the scope of application and legal consequences of advance tax ruling,which will be the question that must be answered in the next revision of Law of the PRC on the Administration of Tax Collection.Moreover,there is an inherent relationship between the scope of application and legal consequences.Therefore,on the basis of explaining the basic theory of advance tax ruling and combining with foreign experience,this article discusses the scope of application and legal consequences of advance tax ruling system and puts forward suggestions for the construction of advance tax ruling in China.The main content of this article includes five parts:Introduction.This part introduces the research origin,research significance,domestic and foreign research status,the research route,research method in article writing and possible innovation and shortage.The first chapter is the theoretical elaboration of advance tax ruling system.First,it classifies the basic meaning and classification of advance tax ruling.Second,it analyzes the legal nature of advance tax ruling and comprehensively compares various theories at home and abroad.Third,it discusses the legal evaluation mechanism of advance tax ruling,namely the basic principle,as to provide the value measurement standard for the construction of the advance tax ruling system.At last,it puts forward some suggestions on the construction of advance tax ruling in China by defining its legal nature as specific administrative act and taking the legal evaluation mechanism as the standard of value measurement.The second chapter is divisions of the scope of application of advance tax ruling.The range of normative pattern includes open and closed systems,with most countries using a combination of positive regulations and negative lists.Based on article 46 th of the draft revision of Law of the PRC on the Administration of Tax Collection(draft for comments),it discusses the positive regulation which can be ruled.The negative list is sorted out,summarized and analyzed one by one through relevant regulations of different countries.Finally,it puts forward suggestions on the division of the scope of application of advance tax ruling in china,which amends article 46 th of the draft revision of Law of the PRC on the Administration of Tax Collection(draft for comments),and attaches the negative list of "absolutely not ruling" and "relatively not ruling”.The third chapter is the study on the legal consequences of advance tax ruling.The legal consequences of advance tax ruling depend on the subject of the tax administration,the applicant,other taxpayers and courts,and the multidimensional discussion is conducted in accordance with normal and abnormal situations.Finally,it puts forward some suggestions on the legal consequences of the advance tax ruling system in China.It is divided into internal effectiveness and external effectiveness.Internally,it is generally binding on tax authorities,not compulsorily binding on taxpayers;externally,it has reference power for other taxpayers and courts.Conclusion.This part makes a brief review and summary of the viewpoints of the full text.It identifies the tax advance ruling as a specific administrative act,divides the scope of application with positive provisions and negative lists,and advance tax rulings have different binding force on tax authorities,applicants,third parties and courts.