Research On Individual Income Tax Issues Of High-Net-Worth Individuals In China

As Chinese economic growth shifts from high-speed development to high-quality development,the income gap between different regions,industries,and groups of people is expanding,the scale of high-net-worth people is also expanding,and the disparity in residents’ disposable income is at a relatively high level..Although China has used digital means to implement tax collection and management,due to the diverse income situation of high-net-worth individuals and their high awareness of tax avoidance,there is still a phenomenon of tax evasion,resulting in the loss of tax revenue.The tenth meeting of the Central Finance and Economics Committee pointed out that it is necessary to strengthen the regulation and adjustment of high income.Strengthening the research on tax collection and management of high-net-worth people has important research significance for improving the tax compliance of high-net-worth people,reducing tax leakage,narrowing the gap between the rich and the poor,and achieving common prosperity.This paper firstly introduces the definition standards and characteristics of high-net-worth people,and introduces the theory of tax compliance,information asymmetry,and tax risk management theory,laying a foundation for the study of tax collection and management of high-net-worth people.Then,analyze the current status of tax collection and management of high-net-worth people,and analyze the scale changes and distribution of high-net-worth people through the data of the "China Private Wealth Report" and "Hurun Wealth Report".By collecting statistical data,this paper analyzes China’s personal income tax income from the total income and income structure,and roughly estimates the tax loss of property income in the personal income tax of high net worth people in China from 2012 to2020.From the current point of view,China has continued to explore tax collection and administration for high net worth individuals and continuously strengthen tax collection and administration,used big data to build a smart tax system,and established a tax credit and joint punishment mechanism.Preliminary results have also been achieved.However,from the perspective of the taxation system,taxation authorities and taxpayers,there are still problems in the tax collection and management of high-net-worth people in China.By selecting the tax evasion case of high-net-worth people Weiya tax evasion case,the current tax evasion of high-net-worth individuals in China is discussed.means,and concluded that the main reason for tax evasion by high-net-worth people is the lack of tax awareness.In order to strengthen the tax collection and management of high net worth individuals,by summarizing the collection and management experience of developed countries such as the United States,the United Kingdom,Canada and Japan,it is found that digitalization has a high degree of application in tax collection and management,full-time management agencies,and a perfect reward and punishment incentive system.commonality.Finally,strengthening the tax collection and management of high-net-worth persons should start from the following three aspects: one is to improve the tax system,the second is to improve the level of tax collection and management of tax authorities,and the third is to improve the tax compliance of high-net-worth persons.