| Tax assessment system is an important legal part in the procedure of tax collection.Due to the incomplete tax assessment system in China,disputes over tax collection have been increasing.In the case of Defa Company v.the Inspection Department of Guangzhou Local Taxation Bureau,focus was put on the following disputes:what’s the function and power of the Inspection Department of Taxation Bureau?Can tax authorities enforce its right on tax assessment over the auction price?Whether the tax basis declared by Defa Company is on the low side without justifying grounds?Can tax authorities impose a surcharge of tax in arrears when a taxpayer fails to pay tax?The Inspection Department of Guangzhou Local Taxation Bureau got the jurisdiction over the illegal behavior,but the auction price shall be deemed to be a reasonable price,Defa Company sold its house in order to save its debt crisis,so the tax basis declared is not on the low side and it is without justifying grounds.The tax authorities can not enforce its power of tax assessment over the auction price,therefore there is no tax overdue fine for late payment.By analyzing the case from different perspectives,this article is mainly to make the theory of Tax Assessment System specific and inadequacies clearly shown.There are several imperfections and limitations of China’s tax assessment system,the application conditions are unreasonable,which leads to greater discretion of the tax authorities;assess procedures are not complete;the double pre-review system limits the taxpayer’s judicial relief.In order to ensure fair tax enforcement,the tax assessment system needs to be improved.The basic principle of tax assessment system should be positioned to the tax principle of legality,the authority is ruled by the law and protection of taxpayers’ rights and interests.The tax assessment method should be used correctly,the legal procedure should be followed and the tax approval dispute should be perfected. |
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