On The Institution Of Assistance In Tax Collection

It is the deepen of the globalization, the widespread international tax evasion and avoidance, the special limitation on the national tax jurisdiction, that make it necessary for countries to carry on assistance in tax collection. However, little attention has been paid to by domestic tax authors on this issue. This paper starts with the concept, the inevitability, and the advantages and drawbacks of this institution and gives a brief introduction of the history of assistance in tax collection as an institution. Then it analyses the particulars of applicable norms on such assistance. Lastly the author concludes that it is necessary for China to introduce assistance clause in its double taxation agreements, whereas three basic principles that ought to guide it shall be took special reference to during the negotiation process, including the " National Condition-Based Chooses and Differentiates" Principle, the " Stick to Fair Taxation, Take our tax laws, tax policy and tax practice into consideration" Principle, and the " Protection of the rights of taxpayers" Principle.Except for the preface and the epilogue, there are four chapters in this paper.Chapter one provides an approach to the concept of assistance in tax collection, explains the necessity of assistance among countries in tax collection, analyses the reconcilability between this institution and limited tax jurisdiction theory and argues the purpose, the advantages and drawbacks of this institution.Chapter two briefly introduces the history of such institution and comments on efforts made by different international organization.Chapter three analyses and summarizes the applicable international instruments and double taxation agreements with the assistance clause in tax collection. It covers the choice of clause modes, the scope of such clause, tax claims, the exceptions to the obligation to lend assistance and other procedural problems.Chapter Four concludes that China is necessary to establish assistance in tax collection. The author concentrates three basic principles that shall be bore in mind and accordingly bring forwards specific suggestions on the particulars of the institution that China should adopt.