Settle Or Insist On Litigation?

Taxation plays an increasingly important role in the process of national economic development,and China’s tax system has also tended to be optimized with the rapid development of economy and society.Tax disputes and tax administrative litigation are still on the rise.With the advancement of the rule of law,especially the process of taxation,how to resolve tax disputes in a legal and efficient manner has attracted attention.This thesis starts from the motivation and ability of plaintiffs of different identities to seek settlement in tax administrative litigation,then explores the influence of plaintiff types on case settlement deeply.Firstly,this thesis expands the classic litigation selection model and verifies the influence mechanism through comparative static analysis and numerical simulation.Then,this thesis use China’s tax administrative litigation cases from 2009 to 2018 as a sample to conduct a regression analysis of how the type of plaintiff affects the settlement of cases or litigation from a case perspective.The research results show that:(1)When the plaintiff of a tax administrative litigation case is an enterprise,the case is easier to settle.(2)The result of the multiplier items show that the increase in the amount of the lawsuit usually reduces the settlement rate of the case,but the enterprise is less affected than the natural person.Experienced judges and high economic development level will weaken the influence of the identity of the plaintiff on the settlement rate.In order to conduct an in-depth analysis,this thesis has conducted three sets of heterogeneity tests.The results show that:(1)For the sample of where the defendant is from the Inspection Bureau,the identity of the plaintiff still has a greater impact.(2)In areas with better economic development,the status of the plaintiff will not impact the settlement rate of cases significantly.(3)In the high-stakes sample,the influence of the plaintiffs identity on the settlement rate is significantly lower than that of the full sample and the low-stakes sample.Finally,based on the litigation selection model and empirical results,this thesis puts forward relevant suggestions,which will help taxpayers resolve tax disputes more efficiently and reasonably maintain their tax rights and interests.