Research Of Tax On Positive Click Farming Income

With the rapid development of the Internet economy,a large number of merchants have settled in e-commerce platforms.However,in order to increase sales,merchants of e-shopping platforms often hire people to buy their own commodities,and then give positive comments on those purchases online.By this cheating behavior,the exposure and reputation of products can be improved on paper,resulting in more real orders.We define the above behavior as "positive click farming".At present,Administrations for Market Regulation punish positive click farming according to the provisions about false publicity in Anti-Unfair Competition Law.It is also dealt by the crime punishment according to the crime of false advertising and illegal doing operation,etc.However,only the liability subjects involved in the case with a large amount of money are punished,which is casual and hysteretic.Thus,the positive click farming industry has not been cracked down thoroughly.Comparatively,tax regulation has high efficiency and wide scope.Through the data connection with e-commerce enterprises,tax administrations can be informed and deal with the tax-related problems of positive click farming in real time,and supervise related subjects normally,which helps to truly restrain positive click farming industry.This thesis first introduces the basic information and regulatory dilemma of positive click farming,leading to the necessity of tax regulation.Secondly,demonstrates the taxability of illegal income,then infer to the taxability of positive click farming.Lastly,the general regulation guideline and tax regulation is concluded.Chapter one and two are background introductions.Chapter one introduces the process and business model of positive click farming,focusing on two contracts involving tax discussion: the click farming contract between farmers and merchants,and the intermediary contract between click farming platforms and merchants.Besides,Chapter one also discusses the specific content of positive click farming income,which lays the foundation for the analysis of the following parts.Chapter two introduces the regulatory methods of positive click farming.At present,while the government regulation and self-regulation of e-commerce platforms have lots of limitations towards positive click farming,tax regulation can solve the problem of positive click farming thoroughly.Chapter three and four deal with the theory of taxability.Chapter three argues for the taxability of illegal income.There is no conflict between taxability and legality,and these two properties are determined separately by different law enforcement administrations.Taxing illegal income can better achieve tax fairness principle and material imposition principle.When illegal income is not banned,the necessity of taxation is even more obvious.Based on the theoretical foundation of chapter three,chapter four demonstrates the taxability of positive click farming income from three aspects: economy,law,and tax administration.Click farming brings real economic benefits and tax base.Positive click farming possesses taxation elements,and it conforms to the principles and spirits of taxation.It is feasible for taxation administrations to accurately calculate the amount of tax payable,and it will not cause additional tax costs.Chapter five explores the means to regulate positive click farming in conjunction with the previous analysis.In the overall guideline,from the perspective of merchants,farmers,click farming platforms,and other entities,different regulatory methods such as administrative penalty,criminal penalty,taxation,civil litigation,and platform penalty are discussed.It mainly focuses on tax regulation approaches.The tax administration can regularly compare the declaration materials of merchants and its sales data in e-commerce platforms,and urge merchants to self-examine and self-correct the difference in sales data.In order to avoid paying excess taxes,merchants will take the initiative to report the situation of positive click farming they referred to,and no longer participate in click farming.Besides,the tax administration can seize a large amount of farmers and click farming platforms according to the information from merchants,and tax them.Through this way,their enthusiasm of positive click farming can be gradually reduced.Over time,the business of click farming may completely disappear.In the application of tax laws,taxpayers should pay value-added tax,income tax and stamp tax.In the case that the income of click farming is confiscated after taxed,the tax administration may refund the corresponding funds of value-added tax and income tax.