On The Relationship Between Inheritance And Tax System

Taxation in inheritance is an important issue which crosses civil laws and the tax laws. It mainly includes the collection of taxes owed by heirs of deceased and the inheritance tax on heirs. In the past the tax was not close to usual people, so it was unusual that the heirs owed taxes when they died. Even though they owed taxes, it was overlooked because there were no tax authorities to collect them. In the research of tax law, because our tax law system is still not perfect, many issues need to be studied, and the tax in inheritance can be as a substantive issue, so no one paid sufficient attention to it. Due to various constraints, the tax authorities have overlooked to collect taxes after the ancestor's death. There is controversy on whether it is suit to collect inheritance tax, when to begin to do it and how to design the tax system. As the tax system is more perfect, the amount of property in succession increases quickly, it is significance not only in theory but also in practice that how to coordinate the relationship between succession and tax.The paper includes three main parts: Introduction, Body and Conclusion.Introduction part is a brief description of the main problems existing between inheritance and tax system and the urgency of solving it.Main part consists of four chapters: In Chapter I ,at first a brief background was given on the various theories of the Inheritance system, at the same time the author compare the basis of succession, summarizing the essence of succession, indicating the importance and necessity of succession; Then the author mainly introduce about the basic theory of taxation, especially about the function of curbing social wealth and taxation priority;at last the author talks about some information on succession and tax in the laws, and the analysis of the social and historical causes of such provisions. The second chapter takes personal income tax as example, elaborated on the approach and sequence in inheritance when the heirs owed tax. The author uses a method of combination of theory and case to analysis shortcoming of the previous "personal income tax law," and the impact of the latest revision on Inheritance. The author analysis the scope,order and responsibility of tax obligations after the successor dead. The third chapter is about inheritance tax .The necessity of inheritance tax was led by two incidents. The author introduces the history of our inheritance tax, the status and trend of inheritance tax legislation in western countries. The author analysis the current conditions of inheritance tax, refuting opponents' five reasons . The author elaborates inheritance tax curbing disparity between the rich and the poor from the perspective of the succession, on this basis brings up our inheritance tax system design. Part IV focuses on relations coordination between inheritance and tax from the theoretical, analysis of the potential adverse consequences of inheritance system and the protection by tax. The author refers the importance and the relevant measures to coordinate them, and takes some suggestions to amend the "law of succession" to adapt to the new situation of the tax system.In the last part the author re-emphasizes that inadequate research on the relationship between Inheritance and the tax system results the simplification of legislation, and that makes the laws useless in practice, and hope that through the article can arouse the attention of theorists.