Causes and Countermeasures of Personal Income Tax Loss in China According to the relevant provisions of the Individual Income Tax Law of People's Republic of China (PRC), it is the obligation of every citizen to collect and pay personal income tax. Income from wages and salaries in the personal income tax payable refers to wages, salaries, bonuses, year-end salary increase, labor dividends, allowances, subsidies and other income related to employment. Taxable income includes cash, objects and securities. With the continuous development of China's economy, the number of high-income people has gradually increased. A considerable number of people have changed from simply taking wages as their main source of income in the past to obtaining income through a variety of channels such as a second job, contracting business or investing in shares. Some of them earn more than 10 thousand yuan or even several hundred thousand yuan a month, and there is an excessive disparity in income among members of society in distribution. The state must use tax lever to adjust, so as to ensure social stability and unity and better embody the principle of distribution according to work. It is the use of tax leverage to collect personal income tax. According to State Taxation Administration of The People's Republic of China's statistics, China's personal income tax loss exceeds 50%. This not only directly reduces the national fiscal revenue, but also seriously weakens the function of individual income tax in regulating and stabilizing the social economy. It is an important task to find out the reasons for the loss of personal income tax and seek countermeasures in the face of the widening income gap of all social strata under the market economy. 1. At present, the main difficulties and problems in the collection and management of individual income tax in China began with 1799 in Britain. After two centuries of development and improvement, personal income tax has become an important means for modern governments to distribute social wealth fairly, organize fiscal revenue and regulate economic operation, and has become the main tax in most developed countries. China's personal income tax collection is late. Since 1980, the state has successively promulgated the Individual Income Tax Law of People's Republic of China (PRC), the Provisional Regulations on the Adjustment of Individual Income Tax and the Provisional Regulations on the Income Tax of Industrial and Commercial Households in Cities and Towns. In the tax reform of 1994, the above three taxes were merged and a new individual income tax law was implemented. At 1999, it was announced from 65439. At this point, personal income tax has entered thousands of households in China, which is directly related to the interests of every citizen, and has aroused widespread concern from theoretical circles and ordinary people. According to the latest statistical analysis of State Taxation Administration of The People's Republic of China, in the past 20 years, China's personal income tax has been growing at a high speed every year, especially since the implementation of the new tax system of 1994, the average annual growth rate of personal income tax is as high as 48%, with an annual increase of11800 million yuan, which is the fastest growing tax category in the same period. 1980, the personal income tax was only160,000 yuan. In 2006, the income from 5438+0 increased to 99.599 billion yuan, exceeding the consumption tax, making it the fourth largest tax in China and the second largest tax in some places. It has played a positive role in the growth of China's fiscal revenue and the adjustment of personal income. However, China's current personal income tax collection scale is small, accounting for a low proportion of income, which is incompatible with China's current economic development and hinders the effective play of the overall function of personal income tax. Therefore, it must be further developed and improved. At present, the main difficulties and problems existing in the collection and management of individual income tax in China are as follows: First, citizens have poor awareness of tax payment, and grass-roots tax collection agencies are lagging behind. Personal income tax has not been levied for a long time in China, and taxpayers are influenced by the long-standing tradition of not collecting personal income tax in China. In addition, the propaganda work is not deep enough, and there is no habit of consciously declaring and paying taxes. It is quite common that the intention to pay taxes is weak and it is quite common to take the initiative to pay taxes. Some people even refuse to pay taxes. As far as grass-roots tax collection agencies are concerned, they lack sufficient understanding of the status and role of individual income tax. Coupled with the reduction of personal income tax, scattered and hidden taxes are difficult to collect, and often insufficient attention is paid to the collection and management work. Therefore, in the actual collection and management work, there are phenomena such as lax supervision, lax law enforcement and unfavorable punishment. In addition, the support and cooperation from all walks of life to the grass-roots tax collection agencies is unfavorable, and some even unite to deal with the tax authorities, which makes it difficult to collect and manage personal income tax. Second, the characteristics of the personal income tax system directly produce disadvantages. The collection of individual income tax has the characteristics of openness and transparency, and its collection choice is in the income distribution link, which is a direct deduction of taxpayers' economic interests. Therefore, it is easy to cause tax confrontation and increase the difficulty of collection, which is the * * * nature of individual income tax in all countries of the world. A typical feature of China's personal income tax system is the classified income tax system; An obvious feature of it is that it cannot be taxed progressively. It is against the principle of tax fairness not to levy taxes according to the comprehensive affordability of taxpayers. The income of many taxpayers is difficult to be included in the scope of taxation, which facilitates all kinds of tax evasion. For example, in 12 months, two taxpayers, A and B, get the labor income of 800 yuan without paying taxes, while B gets the labor remuneration of 9600 yuan in one month, and the remaining 1 1 month has no income, but has to pay 1760 yuan. This tax payment method is easy to be used by people, and the purpose of tax avoidance and tax evasion can be achieved by breaking it into parts. Third, personal income tax and specific collection and management measures are not perfect. The structure and content of China's individual income tax law are relatively simple, and the provisions on taxpayers' obligations and legal responsibilities are not detailed enough, such as the lack of basic provisions on taxpayers' rights. Specifically, at present, there are two main ways to collect personal income tax in China: personal declaration and withholding. The self-declaration system lacks appropriate supporting measures, and the withholding system has not been strictly implemented. Because the legal status and responsible person of withholding agents are not clear, some units are unwilling to perform withholding obligations or do not actively cooperate, so it is difficult to achieve source control. The tax authorities can't get accurate personal income information through all walks of life and can't crack down on tax evasion. Fourth, the management mode is backward and the information of collection and management is not smooth. China's tax collection agencies are based on administrative divisions and management levels, and have a multi-block management system with special administrators to manage taxpayers. Under this traditional management mode, the front-line strength of the collection and management institutions is relatively insufficient, and most of them are still based on original manual operation, which leads to inaccurate information transmission; And the timeliness is poor, and it can't even be transmitted and accepted across the collection and management areas, which leads to the information occlusion between internal institutions. In addition, due to the lack of effective cooperation measures with relevant departments and poor external information sources, tax authorities cannot accurately judge tax sources. The income obtained by the same taxpayer in different regions and at different times cannot be summarized by the tax authorities without the taxpayer's initiative to declare; What is more noteworthy is that after the separation of national tax and local tax agencies, if they are not worthy of modern management methods, the information will not be smooth. Fifth, there is a lack of effective control over personal income. China has not really established a system of personal property registration and personal income declaration and registration. At present, China's personal income distribution system is not transparent enough, citizens' hidden income sources are extensive, and the situation is complex, so it is difficult for tax authorities to find out the truth. At the same time, the bank settlement system is not advanced enough, and all kinds of transfer settlement systems are complicated, so there are a lot of gift payments in our real economic life. All these have brought difficulties to the supervision of tax authorities. Sixth, the provisions of the current model on personal income tax deduction are unreasonable. Only based on the concept of "net income" does it make sense to tax individuals. Therefore, in order to obtain taxable income, it is necessary to deduct the expenses that taxpayers should deduct from the adjusted gross profit income. Because in real life, the proportion of costs and expenses paid by each taxpayer to obtain the same amount of income is different, even far from each other; Therefore, it is obviously unreasonable to stipulate that all taxpayers deduct the same amount or the same proportion of expenses from their income. In addition, the system of separate declaration for husband and wife is also unreasonable. In the category of cumulative tax rate, the combined declaration of husband and wife is fairer and is conducive to the adjustment of family tax burden. Prevent tax evasion and distribute income fairly. In addition, the theory of tax collection and management in China is relatively weak; The tax system for regulating personal income needs to be improved, which has a certain restrictive effect on the collection and management of personal income tax. Second, the countermeasures to solve the loss of personal income tax in China Faced with the massive loss of personal income tax, the basic ideas for seeking countermeasures are as follows: first, have a complete understanding of personal income tax, understand the environment and current situation of personal income tax collection and management in China, establish a positive consciousness based on reality, go deep into layers, make key breakthroughs, formulate operational plans, and establish specific collection and management goals, which can be divided into short-term goals and long-term goals. (1) The short-term goal is to intensify efforts to reduce the massive loss of personal income tax and plug loopholes. At present, we should do a good job in the following aspects: First, we should do a good job in filing and paying taxes. Strengthen withholding and payment. There are two main ways to collect personal income tax in China: declaration method and withholding method. It should be based on the situation in different regions; According to the characteristics of different industries, specific tax declaration methods should be formulated to promote the all-round development of tax declaration and payment. At the same time, we should also be soberly aware that under the current tax collection environment in China, it is impossible to declare and pay taxes completely in a short time. We must proceed from the people's feelings in our country at this stage, strengthen withholding and implement source control. At the same time, it is necessary to further clarify the legal responsibilities of withholding agents and strengthen the legal constraints on withholding agents. At present, it is the most effective way to strengthen the collection and management of personal income tax to implement withholding and paying in a comprehensive and deep way. The second is to establish and improve the special inspection system for personal income tax. Combine regular inspections with regular special inspections, and focus on key units, special classes and high-income individuals in daily inspections. Conduct a special inspection regularly before March every year to complete the taxpayer census and scientific sampling inspection in the previous tax year. Through these inspections, we will further strengthen the publicity and education of tax law and enhance the legal concept of taxpayers and withholding agents. At the same time, investigate and deal with a large number of major tax evasion cases and units that fail to fulfill their withholding obligations, and make up taxes, fines and penalties according to law, so as to weaken the fluky psychology of involuntary filers, standardize the behavior of taxpayers, block the loss of personal income tax to a certain extent, and strengthen the seriousness and authority of personal income tax. Third, do a good job in the management of high-income people and individual industrial and commercial households. All tax collection units should adjust measures to local conditions, clarify the tax collection targets, list high-income classes and high-income individuals as key taxpayers, and adopt methods such as casing investigation and follow-up audit to closely cooperate with relevant units; Anatomy of typical forms, key breakthroughs, checks at all levels, verification of income and expenditure of high-income groups, so as to calculate taxes, at the same time, do a good job in the declaration and tax payment of high-income groups, and accelerate the process of tax declaration and tax payment nationwide. When imposing quota rate and quota collection on individual industrial and commercial households with sound accounts, the principle of "high is not low" is adopted to urge individual industrial and commercial households to establish and improve accounts and guide taxpayers to the road of independent operation. Fourth, respect and protect the rights of taxpayers and optimize the services of tax authorities. Citizens not only have the obligation to pay taxes according to law, but also enjoy the corresponding rights endowed by law. It is convenient to pay taxes and has the right to know, appeal, privacy, confidentiality and report tax evasion. These are the basic rights of taxpayers. Should be publicized; It should be protected and implemented. Tax authorities should create more convenient tax payment conditions for taxpayers on the premise of improving and optimizing services. For example, they can take tax announcement, set up policy consultation, tax policy hotline and other services to show respect and protection for taxpayers. Only when citizens have a sense of subject power can they have a stronger sense of tax obligation and a higher sense of tax payment. (2) The long-term goal is to solve the problems existing in individual income tax. To establish modern management ideas, rely on scientific management methods and means, and establish a scientific, strict and efficient tax system and collection and management system, we need to do the following: First, improve the professional quality of tax personnel. Tax administration is a highly knowledgeable, technical and practical subject. It is not only the objective need of personal income tax collection and management, but also the inherent requirement of the establishment of the whole collection and management system to cultivate a group of professionals who know both tax law, accounting and computer. Only by establishing a high-quality team with modern scientific management knowledge and rich practical experience can we effectively coordinate the collection and management of national tax and local tax, communicate internal and external information and guide tax agents; Conduct tax consulting business, etc. The second is to actively promote the popularization and application of tax agents and computers. Objectively speaking, tax collection needs the improvement of the whole social management level and the smooth collection and management information, especially personal income tax. Personal income tax has a wide range and a large workload; Tax agents can free tax officials from tedious work. Computer application and networking is the fundamental way to solve the problem of unsmooth information, complete the political monitoring of tax sources, realize the integration of income declaration and payment monitoring, realize the enjoyment and dynamic management of data, and is also the necessary condition for establishing the personal income and property declaration and registration system. The third is to transition to the mode of strict management and heavy punishment as soon as possible. China's personal income tax is lax and the punishment is unfavorable. Referring to the successful experience of developed countries, it is an effective way to strictly control heavy penalties. Strict management means strict policy design, sound legal system and strict collection and management. Heavy punishment is to severely punish acts that violate the tax legal system, so that it has a powerful deterrent effect. By strictly controlling heavy punishment, the taxpayer's behavior is restrained, tax loss is reduced, and fiscal revenue is increased. Fourth, tax authorities should establish large-scale information and data processing centers that are not restricted by administrative divisions. Relying on this, we will integrate tax declaration centers all over the country, form a computer network system covering all walks of life in the country, and fully occupy tax source information; Several households * * * enjoy dynamic processing, and complete the screening, judgment, summary, audit and data statistics of individual income tax returns provided by taxpayers in different regions and at different times. Only through modern management technology can we finally reduce the area and quantity of personal income tax loss. The fifth is to complete the transition to a comprehensive income tax system. At present, China implements a classified income tax system, which is contrary to the principle of tax fairness, and its own defects also increase the difficulty of collection and management. At the same time, the classified income tax system is not easy to achieve multiple adjustment goals. Looking at the development history of personal income tax in the world, the general trend of personal income tax is the transition from classified income tax system to comprehensive income tax system. Therefore, China should gradually establish a comprehensive income tax system that can cover all personal income, with individuals and families as the reporting subjects, and solve the unfavorable factors in personal income tax collection and management from the tax system, although the comprehensive income tax system requires higher comprehensive supporting conditions and collection and management level. But we should also strive to achieve this goal. Sixth, establish a complete tax system to regulate personal income. At present, personal income tax is the only tax that regulates the distribution of personal income, and at the same time, it directly taxes people; The inability to pass on the tax burden is a basic motive for taxpayers to evade personal income tax. In order to plug the loopholes in the tax system, embody the principle of tax fairness, and effectively achieve the purpose of adjusting personal income level, the state should levy inheritance tax, gift tax and social security tax when conditions permit, establish and improve the tax system for adjusting personal income, and avoid the situation of collecting income tax separately. In short, due to the late introduction of personal income tax in China, the scope of personal income tax in China is too narrow, the proportion of income is low, and there are still defects in personal income tax, which is not suitable for China's current economic development, which seriously restricts the fair distribution of financial income and social wealth of personal income tax organizations and the full play of its function of regulating economic operation. Therefore, China's personal income tax will be further developed and improved; Establish a scientific tax system suitable for China's economic development, and at the same time establish a strong tax collection and management team. Comprehensively and effectively monitor personal income, so as to achieve the goal of narrowing the gap between the rich and the poor and increasing national finance, and lay a solid foundation for building a well-off society in an all-round way proposed by the CPC Central Committee.