| The state pursues a pre-tax profit-maximizing while taxpayers seek to maximize the after-tax profit. As the coordination of interests, The Enterprise Income Tax Law, especially its pre-tax deduction system displays the rivalry and coordination of benefits between state and taxpayers. On the other side, while we realize the idea of "three direct links", compatriots of both the mainland and Taiwan are eager for the coordination of tax. To investigate Taiwan's tax system can not only absorb the merits of Taiwan's tax system, but also improve the relationship between both sides. Therefore, it is very important to compare and analyze both the pre-tax deduction systems of the mainland and Taiwan.To state my point clearly, I have four parts in this dissertation as follows:Part one analyses some important problems as to construction of institution of pre-tax deduction of enterprise income tax from the point of jurisprudence.These problems, firstly, include the legitimacy of full deduction, limited deduction and excess deduction, and their relationships; secondly, the basic elements of the system of pre-tax deduction and its forms of manifestation. Accordingly, basic views of this essay come about from this analysis: this principle of the system of pre-tax deduction is full deduction, and its exceptions are limited deduction and excess deduction substantially; its basic elements should be legalized formally.Part two makes a comparative analysis of institutions of enterprise income pre-tax deduction between Taiwan and mainland macroscopically.The inland enterprise income pre-tax deduction has undergone several decades' development from planed economy to planed commodity economy, and then to market economy. It has already been shaped into a normative system which is constituted by some hierarchy of legal norms that are taxation law, administrative regulations, departmental regulations and so on. The pre-tax deduction system of enterprise income tax of Taiwan and mainland has been in the process of coordination,(1)Both sides have developed a relative normative system.The difference is that the history of mainland enterprise income tax is shorter and the relevant legislation is later, while Taiwan has been kept imposing the tax since 1945 and the relevant systems are more accurate after many fortifications.(2)Both sides pay adequate attention to the principle of law. On the three core issues of whether, when and how to deduct, the mainland provides the eight principles of authenticity, relativity, rationality, matching, no deduction, accrual basis, certainty, legality .Taiwan area also has the similar regulation, but not as clear as the mainland.(3)Both sides illustrate both pros and cons of problems.They enumerate disbursements that obviously contradict the basic principles to cons. The matter is that Taiwan area is a little inferior to the mainland on the systematization and integrity of the regulation. Deduction varies inversely with tax, so, the more occasions of non-deduction, the less space will be left for tax evasion. For this point, the mainland's tax income security is much more stronger than Taiwan area.Part three draws three conclusions by combing the micro-credit system's similarities and differences of both sides.(1)Overall pre-tax deduction systems in both sides have formed a full deduction as the main body, deduction limits and excess deductions as the supplementary model. The difference is that restrictions for pre-tax deductions on the Mainland are much more, and increased the tax burden of enterprises, and also is not conducive to cross-strait market economic principles of fair competition. However, neither in the Mainland nor in Taiwan area, the existing pre-tax deduction from the overall pattern to the principle of full deduction, deduction limits and excess deductions for exceptional fairness and scientific requirements, have greatly improved and a sound space.(2)Both sides attach great importance of tax regulations' regulation function to the development of social economic and consider excess-deduction as a way to effect preferential tax policy. The only difference is Taiwan also combine deduction with measures to improve the tax collection and management.(3)The differences of the two sides' social institutions are also obviously reflected in the pre-income tax deduction system. Mainland attaches great importance to the benefits of enterprise employees, especially stipulates that labor protection outlay and union funds can be deducted, but Taiwan is more focused on protecting enterprise's benefit.To sum up, Taiwan area is more concrete in the regulation of specific itemized deductions and tries to reduce the using of limited deduction. It suggests contracting freedom which is requested by social economy. However, the mainland is more intelligible on macro-scopical field such as basic principles and controversy regulation.Part four discusses the reconstruction of mainland's pre-tax deduction.First, reconstructing framework should combine basic contents and elements.The new Enterprise Income Tax Law and its Implementing Regulations have already outlined the enterprise income tax deduction regulation's basic contents longitudinally, and need to create the elements horizontally so that we can fully open the "net of law" on the enterprise income tax deduction regulation. So, we should take costs, disbursements, tax, losses and other expenses as basic contents, project, scope, standard and procedure as elements to reconstruct the "skeleton" of pre-tax deduction.Second, in order to get a more efficient result, different strategies should be applied for different aspects.Mainland should not only try to benefit from both sides' current regulation, but also to learn from their experiences, and handle the essential requirements of the tax law as the coordination of interests in order to make use of the late-development advantages of pre-tax deduction. |
