The Study Of Taxability Theory

The concept Taxability doesn't exist in the norms of Tax Law, rather, it is just an academic concept. Taxability Theory, likewise, is a completely new theory emerging in the circle of Tax Law, and has been seldom touched up to date. Based on previous studies, this thesis establishes the theoretical basis of Taxability Theory, and analyses its value in practice. The global structure of the study is arranged as follows:Chapter One addresses the proposal and significance of Taxability Theory. It introduces Professor Zhang Shouwen's On the Taxability in Tax Law, and analyses other studies on Taxability and their achievements. On the basis of previous studies, the author argues that connotative meaning of Taxability is that reasonable and legal taxing must concretize the economic feasibility and taxability in law and take into account of other social factors, thereafter the legalization and sincere implementation of the taxing. To be specific, there are two criteria of taxability: economic feasibility, viz. taxing shall not violate the need of macroeconomic control, and fit the ability of the taxpayers in the micro sense. The author holds that the proposal of taxability is significant in three aspects: it is helpful to the perfection of Tax Law; it can improve the principle of legality of taxing which has been weakening; it can provide guidance to taxing in practice.Chapter Two explores the theoretical bases of Taxability Theory including the economic basis and jurisprudent basis. As for the economic basis, taxing is closely related to macroeconomic control, so the macroeconomic control theory must be considered first when studying the Taxability Theory. Through macroeconomic control, the state adjusts every aspect of the economy, including readjusting industrial structure, division of income, etc., all of which can be conducted with taxing as the lever. Taxation, as an important link in the operation of economy, must goes in line with the trend of the macroeconomic control. By the same token, as an important component of the theories concerning tax law, Taxability Theory must conform to the need of the macroeconomic control, and base itself on macroeconomic control theory. Secondly, as the component of theory system of Tax Law, Taxability Theory's research and development should also take the division of income into account striking a balance between the micro and macro goals and between the public interest and individual interest. Meanwhile, Public Fiscal Theory and Tax Pricing Theory offer inspiration for the study of Taxability. As for the jurisprudent basis, rule of law, view of justice and human right are discussed. The ultimate aim of Taxability Theory is to guide practice, thus, Taxability Theory should also conform to the principle of running state affairs according to law, and keep the study of taxing up with the development of law. In the meantime, social justice, as a basic value principle, guides and supervises Taxability Theory. When studying the taxability of the possessions and income in society, Taxability Theory should also consider whether the taxing will threaten the life insurance of the owner of the possessions, and should balance the state fiscal income and insurance of taxpayers'rights.Chapter Three discusses the concretization of Taxability Theory and the principles of Tax Law including the principle of legality of taxing, the principle of taxing based on the taxpayers'ability and the principle of entity taxing. The three typical principles are the basic principles of tax law and the necessary principle of some tax. Therefore, in order to concretize Taxability Theory into Tax Law completely, the theory must cooperate as well as divide work with the content of Tax Law so as to co-develop them. The author argues that the study of taxability in Tax Law should take the principle of legality of taxing as premise, in the meantime, the Taxability Theory is the perfection and intensification of the principle. The Taxability Theory provides specific criteria for the'ability of the taxpayers'and the discussions of the principle of taxing based on the taxpayers'ability, in return supply the Theory with valuable references. The dispute on the legality of income has been settled by the principle of entity taxing, viz.,'the taxing should base itself on the aim of economic effect and the nature of the economic activity'. The author argues that even if the illegal income should be taxed according to the Tax Law, but the final disposal of the illegal income should be the duty of the relevant departments.Chapter Four explores the significant guidance of Taxability Theory to the reform of Tax Law in china, focusing on several hot issues including the taxability of life insurance, the income of agriculture, and the charge of social security's conversion into social security taxation. The first is the taxability of life insurance. In the present Tax Law, all the insurance compensation is immune from taxing. However, in the author's opinion, the compensation should be taxed considering the characteristics of life insurance. The detailed discussion is conducted relative to various situations. Given the characteristics of the insurance and Taxability, we hold that taxing on life insurance doesn't go against the original intention of life insurance. The second is the taxability of the income of agriculture. The agricultural taxation has been cancelled, but the income of agriculture should be taxed, for it doesn't increase the burden of farmers; meanwhile it is the need of the perfection of tax law. Given the consistence of social development and perfection of rule of law, the author argues that the income of agriculture should be taxed and the taxation should be integrated into the present tax law system, but should better the link between the taxing regulation of agricultural income and the present taxation system. The third is the charge of social security's conversion into social security taxation. That the charge of social security is converted into taxation of social security has long been being disputed, but the discussions are confined in theory rather than in the practice in the tax law system. The issue is explored from a new perspective--taxability in this chapter. Based on Taxability, we hold that taxing on social security is feasible. In the discussion on the three issues, some feasible measures are proposed in hope of perfecting the Tax Law and contributing to the reform of tax system.