The Legal Consideration Of Offer In Compromise

Offer in compromise was introduced to China more than 10 years and up to now it has been developing fast. In daily life we can see the report about it in various medias. As a innovative system in the reform of tax collection and administration, Offer in compromise has maked a great improvement. It’s not only a great help for improving efficiency of tax collection and administration to achieve the purpose of taxation smoothly, but also harmonizing relationship between tax levy and payment in a flexible law enforcement method, which make taxpayers to comply with the tax law more voluntarily. However,a hot topic,which is highly focused on and widely discussed in practice like this, has been ignored by scholars in the theoretical circles. The article starts with defining the fundamental concept, types, scope of application of Offer in compromise, and then analyses realistic meaning of Offer in compromise in a detail way and simply introduces its practice in China. There are five legal problems about Offer in compromise to talk about in the article. First of all, the legislation of Offer in compromise is separated from reality practice; secondly, the procedure of Offer in compromise lakes of standardization that means how the work should be unfolded is uncertain. Thirdly,there is a phenomenon that Offer in compromise is overused. Fourthly, it is not clear that what the nature of Offer in compromise is. Last but not least, there is a lake of a complete set of legal mechanisms for Offer in compromise. In fact, Offer in compromise is not a native characteristic in China but an ocean system introduced from foreign countries. The author drew lessons from extraterritorial Offer in compromise and learned a few beneficial experience,then combined the exiting Offer in compromise system in China, and point out several legal improving countermeasures in Offer in compromise from five aspects. The first one, the author suggests that authorities are supposed to improve the legislative hierarchy of the Offer in compromise as soon as possible and make unified legislation. Meanwhile, to make clear what legal nature of Offer in compromise is, so that taxpayers’ rights can be protected; secondly, ensuring the specific power and rights which tax authority and taxpayers are supposed to enjoy to guarantee procedure just and fair of Offer in compromise; the third one,the author suggests that authorities are supposed to regulate several specific problems exist in the procedure of existing Offer in compromise. The forth one, consummate a complete set of mechanisms of Chinese Offer in compromise. The last one, consummate a remedy system of Chinese existing Offer in compromise.