Reconstruction Of Tax Verification

Tax verification is an administrative confirmation act of confirming the taxpayer’s taxable amount by the tax authority according to its discretion and using certain standards and methods under the circumstance that the taxpayer’s self-reporting cannot be used to determine the taxable amount.The tax verification system reflects the state’s tax collection power,which can guarantee the collection of state taxes,promote tax fairness,and improve tax collection efficiency.The tax verification system plays an important role in filling the loopholes in the tax legal system,regulating taxpayers’ tax behavior,and safeguarding the country’s tax interests.However,in recent years,tax assessment has caused a lot of controversies in the specific application,and the Guangzhou Defa case has pushed tax assessment to the forefront.In particular,the functional positioning and application of Article 35,paragraph 1(6)of the Tax Collection Law,the tax verification system,which was originally used as a supplementary means of audit collection,is now frequently used as a question for the anti-tax avoidance system.The sound continued.This paper takes the revision of Article 35 of the Tax Collection and Administration Law as a research perspective,focuses on the case analysis method and literature analysis method,and brings out the problems existing in the practical application of the tax verification system from the analysis of classic cases,and summarizes the evidence through a small sample case.This leads to the discussion of the tax verification system in its original sense,the reasons why it cannot undertake the anti-tax avoidance function,and suggestions for improvement.The first part starts with the case,selects the Guangzhou Defa case and the Xinjiang Ruicheng case,and compares the two cases with similar circumstances but different processing results,and selects 19 cases that conform to the research content of this article,and is assisted by the conclusion of the small sample case.The evidence reflects the problems existing in the practical application of the tax verification system and the thinking caused by it.And further analyze the basic theory of tax assessment,to lay the groundwork for the analysis of the specific clauses in the following.The second part starts from Article 35(1)(6)of the Tax Collection and Administration Law,and discusses the function orientation,application premise,judgment standard and burden of proof distribution of this article from a micro perspective.After analysis,it is pointed out that,in principle,the best standard for the obviously low tax calculation basis should be 70% of the comparable market price;the connotation of justifiable reasons is mainly the reasons that do not take tax avoidance as the main purpose,do not violate legal regulations,and do not violate public order and good customs.The opposite is called "without justification".In terms of the distribution of the burden of proof,the tax authority should bear the burden of proof for "the tax calculation basis is obviously low",and the taxpayer should prove that the taxpayer has a legitimate reason when the tax calculation basis is obviously low,so as to balance the burden of proof.The third part mainly analyzes the reasons why tax assessment should not assume the function of anti-tax avoidance.On the one hand,the tax verification system is different from general anti-tax avoidance clauses,it is difficult to apply to all anti-tax avoidance transactions,and it cannot achieve the purpose of anti-tax avoidance on economic substance;on the other hand,in terms of procedures,due to the lack of corresponding Procedural regulation makes it difficult to balance the rights of taxpayers and the discretionary power of tax authorities.At the same time,it may also be inconsistent with the spirit of the principle of taxation legislation and the principle of fairness in taxation,and violate the original legislative intent of the taxation verification system.The fourth part puts forward corresponding suggestions on the revision of Article35 of the Tax Collection and Administration Law on the basis of the previous analysis.Including strict application procedures for tax assessment to standardize the discretion of tax authorities,giving taxpayers the right to participate in tax assessment to balance the powers of tax authorities and taxpayers,in addition to clarifying the basic rights of taxpayers to state defense,apply for withdrawal,etc.the key is to give taxpayers the right to participate.right of objection and hearing.At the same time,improve the corresponding supporting system for tax-related price assessment and supervision,and amend Article 35 of the Tax Collection and Administration Law,delete item 6 from Article 35,paragraph 1,and list it in Article 35,paragraph 1 at the same time.Other enumeration clauses,and redefine a catch-all clause that precisely defines the applicable tax verification system,so that this clause becomes a veritable tax verification clause.In addition,a genuine general anti-tax avoidance clause can be introduced into the Tax Collection Law at an appropriate time,and strict anti-tax avoidance application procedures can be specified for it.At present,the thin provisions for special anti-tax avoidance such as transfer pricing stipulated in Article36 of the Tax Collection and Administration Law have been further enriched,so that a general anti-tax avoidance and special anti-tax avoidance framework has truly been established in the Tax Collection and Administration Law,which also makes the tax verification system different from Anti-tax avoidance regimes have their place.