Study On Improvement Of Tax Management After "The BT-to-VAT Transition"

For a long time,China carried out a parallel tax system of value-added tax(VAT)and business tax(BT).This system has played an important role in China's national economic growth.With the development of China's market economy,the ongoing finance & tax reform and integration of domestic and international market,the BT-to-VAT transition has become a key element in lifting the burden of enterprises,promoting economic transition and supply side reform,and triggering more driving force for the market for overall economic growth.`The tax collection and administration model and tax system are interacted on each other.The tax collection and administration model is defined by the tax system,while the model could react on it.This complementary relation makes model keep evolving and being optimized to comply with the system.Against the backdrop of the tax system reform,which begins with the BT-to-VAT transition,great changes will happen to the works relating to tax collection and administration.This change also brings higher demand and more challenges to authorities in charges of taxation.Therefore,it is of practical significance to take analysis and research on tax collection and administration model.The author of the paper has taken the BT-to-VAT transition in Suzhou as an example,and has analyzed the changes brought by this transition on enterprises' tax burden,market economy and economic structure transition.The author has also studied the changes of taxation authority on tax collection and administration before and after the BT-to-VAT transition.The transition has lifted the burden of most enterprises in Suzhou,and promoted the economic structure transition,which is benefit for local economy.At the same time,by analyzing the tax collection and administration after the BT-to-VAT transition as well as the changes of the taxation authority,the author hasconclude the following three main problems and relevant causes in tax collection and administration: resources imbalance of tax collection and administration;unprofessional management;insufficient information sharing & collaboration.Based on the theory of public service,and taking the tax collection and administration model in developed economies such as the US,Japan and EU as counterparts as well as considering the practical operation on township level,the author has raised the following comments to improve the tax collection and administration against the backdrop of BT-to-VAT transition: to establish a tax-payers-oriented mechanism and draw clear lines between obligations and rights of tax payers and tax authorities,to provide demand-oriented taxation service;to establish an improved tax collection and administration mechanism,to accelerate the revision and perfection of The Law of the People's Republic of China on the Administration of Tax Collection,to promote reform on administrative service and establish a guarantee mechanism on collaboration of state and local taxation authorities;to improve the current taxation service system and establish a flattened structure,to make progress in managing the taxation sources and promote the taxation collection inspection and deterrent force;to improve the taxation collection and administration level with information technology,and promote information integration of state and local level taxation authorities,to improve the collaboration in taxation collection and data sharing level.