Research On Tax Issues Of Peer-to-peer Lending Industry

Peer to peer lending was created by Zopa in 2005. From then on, this kind of internet finance arises quickly around the whole world. In USA, we got Lending Club and Prosper. In China we have RenrenDai and Lufax.P2P has two sources. One is e-commerce like eBay, the other one is inclusive finance. Basically, P2P broaden the scope to get loan by information technology. Its truth is the online version of private lending. While the scope expands, the risk and the trust problem make the operation of the platform becomes more complicated. At the same time, the ordinary financial institutions become interested in P2P. This makes the situation even more complicated.The market becomes larger and larger. It needs regulation from the government. Tax problem need to be considered too. If we cannot give proper regulation and right tax policy, the finance innovation may be failed. What is worse is that the traditional finance industry may be influenced.Therefore, the author decides to explore the tax issues of the P2P platform, using theoretical analysis and comparative analysis. The first part summaries the existing papers and explain the innovation and shortcomings. The second part pays more attention to the causes and development. The difficult situation of tax collection is also included. The third part introduces four p2p platforms from UK and US. We learn a lot from their ways to deal with tax issues. The fourth part of this paper studies the taxpayers, tax rate and tariff. At the end, the author argues why it is important to strengthen the tax collection system, and how to achieve it.