||There are two ways to make a tax declaration for Individual Income Tax, one is Consolidated Tax Return; the other one is the single individual reporting tax. Our government will add a new method called "The Amount of Tax Leviable on the Salary Income of a Taxpayer or His(Her) Spouse Computed Separately and then Declared and Paid Consolidatedly by the Taxpayers," which serves as a new tax declaration for Individual Income Tax in 2016. It clearly indicates that domestic taxation system gradually shifts from household to one single person. |
The thesis discusses the comparison and contrast between Consolidated Tax Return and Single Tax Return from the three phases, "Social Fairness and Justice," "The Public’s Behavioral Intention," and "analysis of the cost for the public and taxing authority" and practical cases. As for the amendment of this policy, the thesis discusses whether it can truly improve domestic taxation services in terms of Social Fairness and Justice, or it does nothing for abatement of tax but to attract votes for candidates.
In terms of "Social Fairness and Justice," as this thesis indicates, both Single Individual Reporting Tax and Consolidated Tax Return are able to satisfy the demand of Ability to pay principle. The only difference is that the usage of Ability to pay principle is for one person or one family. There are pros and cons for those two policies in terms of Substantive Principles of Taxation. Under the circumstance of Single Individual Reporting Tax, taxpayers can choose whether to pay taxes based on their income or not; they do not need to pay their taxes through Consolidated Tax Return; the situation goes same as the taxpayer remain single, not restricted by law, and they are able to govern their income more freely. However, it is possible that they avoid paying taxes. Therefore, the government must consider taxpayers' freedom about managing their income and the phenomenon of twisted system of paying taxes and strike a balance between those two considerations.
This thesis also examines the amendment of the policy whether it can change the human labor of the public and the will of getting married from statistic. The result indicates that the amendment of the policy indeed influences the labor supply of the public. Under the current circumstances of Population Aging and shortage of labor supply, the amendment of the policy brings positive effect for the domestic labor supply.
Finally, between taxing authority and the public, this thesis discusses the consequence from tax collection which is tremendously modified by the policy of taxing authority from practical cases and the phenomenon called information asymmetry of the public, taxing authority, and judicial organ. Also, the thesis points out that in order to be consistent with the Council of Grand Justices (CGJ) delivered Constitutional Interpretation (CI) 696, this relationship, on one hand, needs to reduce the tax of taxpayers; on the other hand, it may make the whole policy more complicated. A misunderstanding may exist between taxpayers and tax collection. Therefore, taxing authority and policymaker who makes policies need to strike a balance between taxpayers and taxing authority. By doing so, the whole situation will not become that the problems of taxpayers and taxing authority become much more complicated in order to reduce the tax of taxpayers. It is completely inconsistent with the Council of Grand Justices (CGJ) delivered Constitutional Interpretation (CI) 696.