A Study On The Legal Problems Of The Taxation Of Inheritance Tax In China

Since the reform and opening up, the economic level of China has significantly improved. As China joined the WTO 2001, the international trade between China and other countries become more frequently, China’s economic development and the income sources of residents are also diversified. However, because of the inharmonious development between east China and west China, urban and villages, regions and industries, the income gap is enlarging constantly. Meanwhile, problems as unbalance distribution of social wealth and contradictions between income level and material needs increasingly stand out. In order to realize the social equity and prevent the excessive income gap, the government must take certain measures to relieve this situation. From the prospect of tax, the levy of estate tax could effectively ease the expanding of wealth gap.The levy of estate tax already became a focus of social issues, which draws increasingly attention from the society. The conditions for levying estate tax are mature. In the paper, the author studied the issue of levying estate tax based on the current situations. This thesis is divided into four chapters. In the first part, it mainly introduced the background, significance and literature review of estate tax. In the first chapter, the definition and characteristics of estate tax were briefly analyzed, and then the relevant theories and functions for levying estate tax were introduced. In the second chapter, through a comparative analysis, the main issues that shall be noticed in the levying of estate tax were proposed, so as to offer references for the implementation of levying estate tax in China. In the third chapter, combining with the basic national status of China at current stage, the author analyzed the necessity and feasibility for China to levy estate tax. In the forth chapter, it mentioned the assumptions for China to levy estate tax. Based on the national conditions of China, the author of the paper briefly designed the law elements for estate tax, and then proposed suggestions on the basis of the tax and legal systems in China.