A Study Of Re-engineering The Personal Income Taxation Process At Hunan G

The tax agents (mostly local taxation bureaus) tax natural persons for personal income tax. Personal income tax will not yield excess burden, which commodity tax and service tax usually produce as they are paid discriminately. As a result, Personal income tax is taking central place of all taxation types in nearly all countries. In coincidence with this tendency, the Chinese system of personal income tax also enjoys constant effort to improve and to develop considerably. In a tax bureau, personal income taxation relates applying to paying the taxes and obtaining the certificate of tax clearance by either a natural person or a company which agrees to withhold the personal income taxation.Thanks to the great liberation and development of productivity and production relations, the years since the Open Door policy was adopted have witnessed an average annual growth rate as high as9%. Meanwhile, tax-related activities emerge and develop remarkably as the economics and the society develop quickly. Among these businesses, the personal income tax business enjoys a particularly rapid increase since lots of personal developments, including but not limited to studying abroad, international travels, and real estate purchases, require certificate of personal income tax clearance. The increase in size demands an increase in service quality as well. As government departments are in charge of tax revenues, local tax bureaus are subject to a series of institutional defects:nomenclatura mentality prevails while service spirit lacks; Systems of performance appraisal, necessary incentive competition and personnel mobility are not fully enforced; Low bureaucratic efficacy entails low locomotive in both creativity and productivity.This paper starts from this somewhat gloomy present, hence it asserts that both bureaucratic efficacy of the personal income tax process and personnel need to be improved. This paper makes this assertion by several steps. First, the tax payers, natural persons and local tax bureaus, are described as an overview. Secondly, the exact amount of potential improvement is indicated by collected data. Thirdly, the personal income tax businesses are studied systematically by investigations, interviews, data analysis and field studies. Finally, this paper introduces an overall plan of improvement for the taxation process. To begin with, key defects of the current process, that is, a process from the application to the clearance certification, are revealed by flow charts and process tables. After that, the target, principle and method of re-engineering the personal income taxation process are clarified respectively:The target should include a shortened process, decreased risks, less work burden and higher service quality; The principle should base itself on general theories of process engineering; The method should be able to re-engineer every aspect of the taxation process, including the organization design, the information system, the accounting system, the application system, and the print and certificate system. Last but not least, some general evaluation and suggestion on the renovation in the sub-systems and the overall process are touched upon.