The Application Of The Good Faith Principle On The Tax Law

Currently, major tax cases emerge in an endless stream in China, and are becoming increasingly serious .What is the reason why there exist so many cases of tax evasion , tax fraud and refusals to pay taxes in China? The reasons are many-sided. Nevertheless, the most profound cause that we maintain is that the principle of good faith has not been established as a fundamental principle of tax law in China.Beginning with two major tax cases in China, this thesis demonstrates that the lack of the principle of good faith in tax law brings about various problems in our country. This thesis which consists of three chapters proves that the principle of good faith is applicable to the tax law in China.Chapter 1 theoretically deals with the application of the principle of good faith to the public law.First of all, we give a theoretical illustration of the application of the principle of good faith to private law and summarize its historical evolution in private law. Besides ,as "Emperor Terms" in private law ,we illustrate the signification and function of the principle of good faith in civil law. With the development of productive practice, the principle of good faith gradually get rid of the bondage of traditional private law and begins to be adopted and applied by the public law step by step. Second, we put more emphasis on the analysis of the possibility of applying the principle of good faith to public law. We also prove that the basic principle of the tax law known as "Four Principles" develops into "Five Principles" after applying the principle of good faith to the tax law in public law.Chapter 2 is concerned with characteristics of application of the principle of good faith to the tax law and the status of the principle of good faith.As a department law in public law , the tax law embraces some distinctive characteristics from other public laws. This chapter argues that the application of the principle of good faith to the tax law is different from that to the civil law. By contrast, we come to understand that the principle of good faith is applicable to the tax law. With regard to the status of the principle of good faith in "Five Principle" of tax law, we mainly expound the relationship between the principle of good faith and the fundamental principle of the law tax which is labeled as "the legal principles of taxation". Through comparison with the fundamental principle, we can draw a conclusion that the principle of good faith constitutes a complementary and coordinating relationship with the tax law.In chapter 3, we discuss the application of the principle of good faith in China.To begin with, this chapter makes an analysis of lack of enough stipulation of good faith in China's tax law. We list some major profound causes for this phenomenon as follows: a low level of good faith and morality; lack of good faith of taxpayers; unmatched information from tax collectors and tax payers and low costs of no faith. Also , through major cases in our real life, we summarize some reasons why these tax cases happen. Secondly, we put forward some ideas on how to establish and improve the principle of good faith in China and set up different requirements for different objects. As for our country and government revenue collecting offices, We require them to improve their legislation and implementation of law to ensure feasible legislation, and standard law enforcement and reasonable legal interpretation. With regard to taxpayers, They are required to change their traditional taxation awareness, to set up the idea of standard of right and to intensify the study of tax law knowledge so that they can pay taxes transparently and honestly.