Research On The System Of Tax Revenue's Subrogation

Subrogation is a traditional system in the civil law, and the concept of subrogation is established in the new edition of Law of Tax Levy and Management in the People's Republic of China. due to the current requirements. The purpose of this article is to analyze roughly the system of subrogation, and the concept, characteristics, main components of it, as well as method of exercising it and its effect since the substantive legal relationship of tax revenue has common characteristics as loan in the private law.The paper is divided into four chapters.Chapter one gives a brief account of subrogation. This section defines the concept of tax revenue's subrogation, and discusses the origin, characteristics as well as qualities of subrogation in the civil law. By this way, it leads to an exploration of the characteristics and qualities of tax revenue's subrogation.Tax revenue's subrogation means that the taxpayer who defaults on tax is indolent in exercising his matured claim to the third party, which causes damage to state tax revenue, the tax authorities have the right to petition the people's court for exercising the claim instead of the defaulter of tax in the name of the authorities. Its qualities cannot be concluded as administrative power or formal right simply. In fact, it is an independent kind of right that have double qualities: administrative power and formal right.The fiftieth article of the new Law of Tax Levy and Management regulates that: "state tax revenue is damaged since the taxpayer who defaults on tax is indolent in exercising his matured creditor's right, or transfers property gratuitously, or transfers property at an evident unreasonable low price and the grantee knows this condition, the tax authorities can exercise subrogation and rescission right according to the seventy-third, seventy-fourth regulations of Law of Contract. The exertion of subrogation and rescission right will not relieve the obligation to pay tax and legal liability that the defaulter of tax hasn't performed." This regulation establishes the system of tax revenue's subrogation.Chapter two is about the main components of tax revenue's subrogation. Although it uses the civil law as reference, it is different from the subrogation in the civil law, and it distinguishes itself from other administrative powers that are exercised by the tax bureau, so its components must be controlled in order to avoid the bad effect on the order of private law by the misuse of subrogation. The constitutive requirements of tax revenue's subrogation are as follows: firstly, the fact that the taxpayer defaults on tax really exists, and the taxing power to the defaulter owned by tax authorities is lawful both on the substantive level and procedural level, namely, the decision of tax collection made by tax authorities should be based on fully proved facts, accurate calculation, plenty reasons, proper basis and complete procedure. Secondly, the taxpayer who defaults on tax has expired creditor's right to his debtor. The range of tax bureau is limited to expired creditor's right with money payment content. Meanwhile, the exclusive rights of the defaulter of tax cannot be subrogated. Thirdly, the taxpayer who defaults on tax is indolent in exercising his matured creditor's right. In the action of tax revenue's subrogation, when the taxpayer doesn't assert his matured claim to debtor by the way of charge or arbitration, as well as other main components are satisfied, the tax authorities can exercise the tax revenue's subrogation. Fourthly, the behavior that the taxpayer who defaults on tax is indolent in exercising his matured claim has caused damage to state tax revenue. The tax revenue is generally in the form of money payment, so when taxpayer is indolent in exercising his matured claim, or there is a delay of performance, or the taxpayer falls into bankrupt, his payment ability will reduce inevitably, which leads to damage to the state tax revenue. Fifthly, the scope of tax revenue's subrogation is restr...