Simplicity in the Chinese Context: The Categories of Differential Income Tax Treatment and their Complications

Research output: Chapter in Book/Conference paperChapter

Abstract

Simplification of income taxation in China is an issue that differs significantly from most of the other countries covered in this book. Indeed, the very question of whether Chinese income taxation is relatively simple or relatively complicated by international comparative standards is not readily determined. The essence of the difficulty of typifying the Chinese tax simplicity situation is the tax institutional environment in China which does not represent strong, developed rule of law. By way of expansion, elsewhere in this book,1 the difficulty of understanding the concept of complexity in taxation is considered and reference is made to Cooper2 who suggested that there are at least seven issues to be considered:

1. Predictability. In this context, a rule would be simple if that rule and its scope were easily and accurately understood by taxpayers and their advisers.
2. Proportionality. A rule would be simple if the complexity of the solution were no more than reasonably necessary to achieve the intended aim.
3. Consistency. This would apply where a rule deals with similar issues in the same way and without the need to make arbitrary distinctions.
4. Compliance. A rule would be simple if it were easy for taxpayers to comply without incurring excessive costs.
5. Administration. A rule would be simple if it were easy for a revenue authority to administer.
6. Coordination. A rule would be simple if it fitted appropriately with other tax rules; it would be complicated if its relationships with other rules were obscure.
7. Expression. A rule would be simple if it were clearly expressed.
Original languageEnglish
Title of host publicationThe Complexity of Tax Simplification: Experiences From Around the World
EditorsSimon James, Adrian Sawyer, Tamer Budak
PublisherPalgrave Macmillan
Pages45-69
ISBN (Electronic)978-1-137-47869-6
ISBN (Print)978-1-349-57465-0
DOIs
Publication statusPublished - 30 Jan 2016

Fingerprint Dive into the research topics of 'Simplicity in the Chinese Context: The Categories of Differential Income Tax Treatment and their Complications'. Together they form a unique fingerprint.

Cite this