A Study Of The Causes And Prevention Of Tax Inspection Law Enforcement Risk

Tax Inspection plays a crucial role in improving compliance level,maintaining and restoring the integrity of the tax system,and creating a level playing field where taxpayers pay the taxes due honestly.Tax Inspection enforcement actions directed at taxpayers will inevitably result in disputes between taxpayers and tax administrations regarding application and interpretation of tax laws and regulations,particularly in the context of drastic changes in enforcement environment such as enhanced awareness to safeguard their own rights on the part of taxpayers,the Business Tax to VAT reform across the country,and increased attention to inspection unit's enforcement actions.This will inevitably result in higher requirements of the enforcement actions by inspectors and higher risks as the inspection Unit and its staff perform their duties.This paper describes the background the significance of studying the prevention of enforcement risks for inspectors in the introduction part.It then analyzes and summarizes the significance of risk prevention,causes of risks and mitigating strategies in the existing literature on risk management,tax inspection enforcement risks and their prevention.It then discusses the theories surrounding enforcement risks and introduces the theories in risk management,checks of public powers and taxpayer compliance as the theoretical basis.The paper also carries out empirical analysis of the enforcement of Inspection Unit in SAT Office in city J,including basic situation,manifestation of enforcement risks,positive experiences and pressing issues to be addressed.In Chapter 4,the paper discusses the status quo of tax inspection enforcement risks in existing inspection practice,and analyses the causes of such risks from five angles,i.e.risk management regime,legal framework,administrative system,enforcement environment,and tax official capacity.In the last chapter,the paper gives recommendations on concrete measures to avoid enforcement risks in China by reference to the positive experience in the US and Germany.