A Research On Law Enforcement Risk Of Local Level Tax Authority And Its Prevention

In recent years, with China’s continuous political and economical development, the continuous promotion of tax legislation, the adjustment and improvement of tax reform, and deepening of tax administration reform, both internal and external situation of tax enforcement has been changed significantly. The tax officers who execute law enforcement have been facing many challenges and tests. At the same time, due to objective factors such as the imperfection of China’s tax legislation and collection system, the uneven level of tax officers’ law enforcement competency, and the increasing awareness of the rights of taxpayers, some hidden risks gradually reveal from the tax law enforcement, especially at the local level of tax authorities. How to effectively improve the level of law enforcement,, how to identify, prevent and resolve the growing risk of tax law enforcement, and who to build the internal risk management mechanisms for the local tax authority branches have become a major issue in the new situation faced by the tax authorities.The tax authorities have made remarkable improvement on tax administration and law enforcement risk prevention during the recent years, but with the exposure of some cases of tax law breach, the risk of tax law enforcement problem persists and attracts everyone’s attention. In this paper, we use the State Administration of Taxation in A as an example to attempt to study how to identify risks in everyday law enforcement process, how to avoid them and how to improve the level of law enforcement. The SAT in A has done a lot of work in terms of exploring and innovating measures of risk management in taxation, and effectively using information technology tools. They have made some achievement in the work of tax law enforcement risk prevention. But what we must see is that SAT-A’s tax law enforcement risk prevention mechanism is still at its early stage and they are yet to establish a more systematic framework. It lags behind what is required in actual work of risk control, making the result of some practice in their enforcement process not so effective. Therefore, how to identify, avoid, prevent law enforcement risks, and how to improve the level of law enforcement, have demanded SAT-A an urgently study and solution during the new round of tax administration reform. Based on SAT-A’s tax law enforcement practices, as well as certain risk management theory, I have explored the causes and patterns of the tax law enforcement risk, and discussed comprehensively the management methods of how the local level tax authorities should deal with and prevent the tax law enforcement risks. This paper is organized as follows: In the first part, starting from the background, significance, research methodology and framework and other aspects, the issue of prevention and control of tax law enforcement risk is introduced. The theoretical and practical significance of the topic is analyzed, and the ideas and methods of this paper is clarified. The second part includes a brief overview of the tax law enforcement risk, the clarification of the relevant concepts, and the elaboration of characteristics and the types of tax law enforcement risks. In the third part, the status quo of tax law enforcement risk of SAT-A is analyzed in depth. The major risks existing in local level tax authorities are identified. It is then followed by exploring the origin and causes of local level tax law enforcement risks from different aspects and levels of analysis of the underlying causes of various types of risks generated by the tax law enforcement. Finally, some very practical measures of how to prevent local level tax authorities’ law enforcement risk are provided and the conclusion is drawn.