Tax expenditure scholarship and analysis in China
Source: Australian Tax Forum Journal Article
Published Date: 1 Apr 2019
In the last quarter of the 20th century, the concept of a tax expenditure budget emerged as the primary mode of analysis of concessions in tax laws in advanced economies. Under this approach, the fiscal cost of concessions is calculated and lost revenue is treated as the equivalent of revenue collected and then disbursed by the government as subsidies to those benefiting from the concessions. The concept initially attracted considerable academic interest in China, though scholarship was largely limited to translation of foreign materials and subject to some confusion, as some scholars concluded the use of tax expenditure budgets amounted to endorsement of concessions as a vehicle for economic development. By the end of the first decade of the 21st century, academic interest in the field had largely faded, but government interest, first at the national level and more recently and selectively at the provincial level, has grown and limited tax expenditure accounts have been prepared, albeit considering newly enacted concessions only.
It remains possible that China will some day adopt a full tax expenditure budget analysis process. Before that can happen, tax expenditure accounts must be broadened to include previously enacted concessions still in force and, more importantly, a move must be made to the second step of tax expenditure analysis, namely, subjecting tax expenditures to the same rigorous analysis that direct subsidies receive, with appropriate changes to their design or their termination if it cannot be shown that the expenditures are effectively targeted and achieving desired outcomes.
Sorry, this is subscriber only content.
To gain access to this material and much more - Subscribe Now.
(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).
Already a Subscriber? Login now
Already a Subscriber? Login now
Details
- Published By: Richard Krever, Yue Mei Guo
- Published On:1 Apr 2019
The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
The Tax Institute
(ABN 45 008 392 372 (PRV14016))
("TTI")
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
Copyright Statement
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.
Tags
Share this page