The Exploration And Research On Chinese Value Added Tax System Reform

The entrance of value added tax to our country is in 1979 at the earliest which is limited to machines machinery and agricultural machinery and bicycles, sewing machines, electric fans. Now it covers industrial, commercial, repair and replacement services and imported goods. After 32 years of development, china's tax system change from the production-type value added tax to consumption-type VAT which has been expanded, but it not yet covered by most of the primary industry and tertiary industry. While the VAT reform in China has made considerable progress, but with the development of society, the current loopholes in the tax system has been exposed. Although China's efforts to crack down more and more inspection and the tax audit mode convert into an inspection mode but all cases of false invoices, tax evasion cases are still emerging. What reason makes the criminals take the risk? I am afraid I have to find reason in the tax system deeply. It is due to the current tax system, there are many tax loopholes that criminals can use them and profit from, and these flaws lead to tax inspectors also difficult to find evidence, so the current cases of false invoices and tax cases are only the tip of corner, these criminals will be unscrupulous.This article from the current loopholes in the tax system in such a perspective, from the sound of the angle of the current tax system, with the theory of practical examples to find out the current tax system exists in all kinds of loopholes. According to the public sector economics theory, it tells China tax system reform must comply with tax fairness and tax efficiency in two principles of efficiency and fairness, and find balance between fairness and efficiency. Together with practical measures, with various supporting measures, we will complete the reform of our tax system step by step.Full-text summarized as follows:First, the subject explained the background and significance, research ideas and methods, and use tax audit of Wuhan Bureau of case studies and case studies are given with the current situation of innovation specific reform proposals.ChapterⅠintroduces the problems of the VAT system, China officially implemented in 2009 the transformation of value-added tax, but the current tax system still exist in many of the tax loopholes, introduced the current prevalence of off-balance sales, forging VAT invoices, small-scale taxpayers management. ChapterⅡtells the problems of the Chinese VAT system. First, the problems are driven by their own economic interests of taxpayers. Second, the financial system is not perfect. Third, there is no inadequate punishment of tax evasion behavior. Fourth, the tax system design is unreasonable. Five, it causes by value-added tax, business tax are division. Sixth, the tax system designed to bring small-scale problem of the taxpayers. From this point of a comprehensive analysis of the six policy loopholes and criminals to exploit these vulnerabilities result in the loss of state taxes, and through further analysis of actual cases exist in the current tax system causes problems.ChapterⅢdescribes the experience of foreign value-added tax system reform which introduced the process of value-added tax reform of France, Germany, the ASEAN countries. And it briefly analyzes the advantages and disadvantages and the reference to the reform of VAT.ChapterⅣdescribes the reform measures according to the situation in our country. First of all, according to economic theory of the public sector, our tax reform must comply with the principles of tax equity and efficiency which is the key to success of tax system. Currently, a large number of foreign countries reform experience can be learned, but based on our current situation, reforms can not be accomplished overnight, but only to gradual reform which is the successful reform. Second, the preparation before the reform should have been done. The one preparation is financial reform which is a guarantee of success of tax system reform. The other preparation is creating a legal environment of tax in which the reform makes sense. At last the article describes substantive reform which combined with the current situation of our country. In the first phase of reform, we change the tax system which is set unreasonable, like as abolition of back of tax policy, abolition of transportation invoices offset policy, the abolition of agricultural products purchase invoices, making up tax control system, and policies of such cancellation and substitution policy recommendations are given. When the conditions are ripe, it will expand the second and third phase of reform gradually which will merge value-added tax and business tax, cancel the small-scale taxpayers and add the family into the tax administration system and the china's tax system will be completed.