Legal Analysis Of The Terms Of The Tax Basis Is Obviously Low And Without Justification

Article 35,paragraph 6 of the "Law on Tax Collection and Management of China" stipulates:"If a taxpayer has one of the following circumstances,the tax authority has the power to verify its tax payable:....(6)The taxation basis for taxpayer declaration is obviously low without legitimate reason." Due to the ambiguity of this provision,and the fact that the legislature has not issued other detailed rules to clarify the criteria for determining the basis for taxation on the basis of the apparently low taxation and justification,the tax authority shall apply the clause to the taxpayer’s tax payable at his discretion.In the process of verification,due to the ambiguity in the provision,more and more disputes between taxpayers and tax authorities have been triggered.However,in the case of taxpayers filing tax authorities that can be found in recent years,the probability of successful taxpayers is extremely low.This theis firstly summarizes the existing judiciary cases that can be used as the focus of major disputes by the fact that the taxation basis for Article 35(6)of the Tax Collection and Administration Act is obviously low and has no legitimate reason.From the perspective of empirical analysis,In these judicial cases,the viewpoints of taxpayers,tax authorities,and courts are summarized and analyzed.Secondly,from the perspective of the interpretation of the meaning of the text and the interpretation of the purpose,the nature of the tax base is obviously low and there is no reason to analyze the nature of the clause.Once again,it is emphasized that taxation rights protection should be paid attention to when the basis for determining taxation is obviously low and without justification.Finally,from the perspective of balancing the powers of the tax authorities with the rights of taxpayers,we propose measures to reduce the apparent low taxation basis and misuse the clauses without justification.The innovation of this paper lies in the analysis of Article 35 Clause 6 of the Tax Administration Law from the perspective of balancing taxation authority and maintaining taxpayer rights,and dissociating it into anti-tax avoidance and anti-taxation when it is applied in tax collection and management practice.The issues concerning the evasion of taxes and evasion of the omnipotent clauses suggest several improvements:First,to strengthen the investigation obligations of the tax authorities;Second,the tax authorities should adhere to the statutory principles of taxation in the determination of justifications;Third,strengthen the judiciary’s administrative actions to the tax authorities review;Forth:Improve general anti-tax avoidance provisions.