On The Power Of Tax Adjustment

Because the taxpayer’s taxable basis does not comply with the tax law or the changes of taxable basis of the fact make the real amount of tax differing from the tax payable. The power of tax adjustments is a executive power that the tax authority revises the tax bases causing the real amount of tax consistent with the tax payable. According to the difference of the purpose of tax adjustments, the power of tax adjustments is divided into general tax adjustments power and special tax adjustments power. The exercise purpose of general tax adjustments power is error correction. The exercise purpose of special tax adjustments power is anti-tax avoidance. The legal characteristics of the power to tax adjustments are a executive power provided with the authority and duty of properties、a power of tax procedures and tax administrative discretion.The theoretical basis on which general tax adjustments power depended is the independence of the tax law and the principle of situational alternative. The theoretical basis on which special tax adjustments power depended is the theory of substantive levy and prohibiting the abuse of powers. Theoretical analysis must be off the foot in the actual final. General tax adjustments power has incorrect adjustment method and inadequate provision about adjustment period. Therefore, the paper proposes two solutions, including transforming the manner of adjustment and completing the provisions of adjustment period. And the paper proposes several corresponding legal measures, in connection with APAs inadequate management the trouble of GAAR applies and asymmetry between in liability and tax power.