Definition Of The Scope Of Incidental Income Under The Individual Income Tax Law

Since the Personal Income Tax Law was first amended in 1993 to include"incidental income" in the scope of personal income tax,the taxation system of"incidental income" has been implemented in China for nearly twenty years,providing sufficient tax sources for China’s economic development and tax security.guarantee.On August 31,2018,the newly revised Individual Income Tax Law was promulgated,and the most significant change is that the tenth item of "other income"in the scope of taxation has been changed."In June 2019,the Announcement on the Application of Taxable Income Items of Individuals’ Income Tax(Announcement No.74)was promulgated to adjust the scope of "incidental income".The scope of"incidental income" has been expanded objectively by adjusting three of the incomes which were originally "other incomes" to incidental income.The scope of taxation of the current Individual Income Tax Law has been greatly adjusted,and "incidental income" is the most important adjustment,so it is necessary to study "incidental income".The provisions on the tax scope of "incidental income" in the current Individual Income Tax Law are not perfect,and the administrative legislation and law enforcement actions of taxation authorities are in need of improvement.For example,in the standardization of taxable income types,there is a situation that some types of income are incompatible with the whole,and some types of income do not meet the constitutive elements of "incidental income" and are not compatible with "incidental income" as a whole,showing a tendency to go beyond the accidental and fortunate nature.This makes the term "incidental income" gradually lose its rigor as a professional legal term.In terms of clarifying the types of taxable income,"incidental income" has replaced "other income" as the new "bottom clause",and the trend is to gradually expand."This taxation model was designed to meet the trend of reform and opening up,to cooperate with the relaxed commodity economy and market environment,and to establish a taxation system that is compatible with the planned commodity economy.However,this taxation model is tantamount to giving tax legislation power to administrative organs in disguise and aggravating the uncertainty and unpredictability of tax types,which is a brutal trampling on the principles of "tax law" and "tax fairness".It is a brutal trampling on the principles of "tax law" and "tax fairness".In terms of legalizing the types of taxable income,the existence of gambling income is widely controversial.The original inclusion of gambling income into the tax category of "incidental income" was to increase fiscal revenue on the one hand,and to regulate the development of the gambling industry on the other.The development of the gambling industry,the cost of collection of loans due to gambling,the rate of bad debts is increasing;gambling leads to low employment rate,or even career destruction;gambling and a series of family problems,child support problems;gambling and derived from the suicide,crime problems are also increasing year by year,in recent years,the The tax revenue contributed by the gambling industry to the country is even difficult to bear the cost of social governance brought by it,and it shows a trend of getting worse and worse.In view of the problems in the scope of taxation of "incidental income" in China’s Individual Income Tax Law and the administrative legislation and law enforcement behavior of taxation authorities,this thesis proposes strategies to solve them,respectively,from the standardized Individual Income Tax Law,the standardized Implementation Regulations of Individual Income Tax Law and the standardized taxation administrative behavior of taxation authorities.The scope of "incidental income" of individual income tax is redefined in three parts:the standardized Individual Income Tax Law,the standardized Implementation Regulations of Individual Income Tax Law and the standardized tax administrative acts of taxation authorities.Firstly,in the standardized Individual Income Tax Law,the clarity of tax legislation should be strengthened,and the principles of tax law and tax fairness should be reinforced,so as to establish the legal status of "incidental income" in individual income tax,and provide legal guidance for tax administrative legislation and administrative enforcement;secondly,in the standardized Implementing Regulations of the Individual Income Tax Law,the scope of "incidental income" should be divided into three parts: "incidental income" should be removed,"incidental income" should be removed,and "incidental income" should be removed.The parts that should be removed include the income from non-competitive payments and income from the provision of guarantees beyond "chance" and "luck",as well as the controversial income from sports lottery winnings and offshore betting.Lastly,in terms of standardized tax administrative acts of taxation authorities,the Personal Income Tax Law and the Regulations for the Implementation of the Personal Income Tax Law should be taken as the basic guidelines and conform to national laws and regulations.It should form a perfect guidance for tax enforcement actions,formulate comprehensive implementation rules,conform to the national development strategy,management needs and development reality,make specific analysis in the light of the current economic development situation,fully consult various departments and units as well as the people,coordinate with each other,be logical and clear,avoid duplication,crossover,conflict and omission among the issued tax regulations,and when according to the domestic The regulations must be maintained dynamically and updated in a timely manner,as adjustments are constantly occurring according to changes in the external environment,the level of economic development and the current economic development dynamics.