A Study On The Tax Credit

According to the theory related to the construction of tax credit system, this article conducts an in-depth analysis for the existing problems and reasons, taking Wujiang district as the blueprint. Combing the working practice of taxation in Wujiang district, it suggests opinions and suggestions for the further promotion of the tax credit system establishment using the experience of tax credit system from some developed countries.There are four parts of tax credit system, tax credit moral system, tax credit institutional system, tax credit evaluation system and tax credit supervision system. Scholars at home and abroad conducted the research in the aspects of contract economy theory, public choice theory, tax debtor-creditor relationship theory and transaction cost theory etc., providing a theoretical foundation for the promotion of the study of tax credit system establishement. A realistic basis to the study of the establishment of tax credit system is provided from the exploring of grassroots tax authorities. Recently, regarding the establishment of tax credit system, the State Tax Department of Wujiang district has made some achievements, especially the tax credit evaluation system. However, the tax credit system establishment can not adapt to the development of economic society from the practice of tax collection and management of the State Tax Department of Wujiang District. The serious unlawful acts of taxation, high cost of taxation cost and unfair tax bearing cause the great trouble to basic tax collection and management work, resulted from the lack of tax credit moral system, relatively lag of institutional system, sole evaluation system and weak supervision system. All these problems are resulted from the weak tax consciousness of honest tax payment, unreasonable drive of benefits, improper implementation of tax statutory principle and incomplete State Taxation and Expenditure System. Additionaly, it is also the result of insufficient practical operation of tax credit evaluation system, lack of coordination among each governmental departments, laggard tax revenue administration system of tax department and no follow-up supervision of tax credit. Using the experience of the establishment of tax credit system in main overseas developed countries, it mainly introduces the pratice in the United States, Canada and Japan and concludes the experience that is worth learning in the aspects of authoritative tax law system, complete and effectvie reward and punishment mechanism, initiatiave taxpaying service, processing and applicating of advanced tax data etc. Based on the above research results, it proposes the suggestions of the completion of the establishment of tax credit system from the standpoint of public management. First, rebuild the tax credit moral system and put effort into the establishment of public finance concept and honest tax consciousness from the aspects of both sides of taxpaying and adoption of various measures. Secondly, with the premise of tax statutory principle, complete the tax credit system and provide institutional supports to the establishment of tax credit system. Thirdly, promote the establishement of tax credit evaluation system; intensify the technical support; carry out a scientific and reasonable evaluation of tax credit result for each taxpayer. Finally, strengthen the supervision system of tax credit; establish tax public information and initiate the power of the whole society including each functional department and tax intermediary agency; reward honesty and punish dishonesty to make all taxpayers choose to be honest considering the balancing of interest.