An Analysis of Defects in the Golden Tax Project System

There are four deficiencies in the Golden Tax Project System. At the first, managing tax by invoice can not prevent the development of underground economy. The second, the Golden Tax Project System can not collect tax effectively. The third, the united networks which include public finance, tax, bank and treasury can not monitor taxpayer. The last, the Golden Tax Project System enlarges the income difference between local governments based on the tax-sharing System. There are some suggest for the reform of the Golden Tax System. At the first, implement integrated management which including bank, invoice and account in the Golden Tax Project System. The second, central government should develop tax-control POS which link the Golden Tax Project System. The third, promote the united networks which include public finance, tax, bank and treasury. The last, reform tax-sharing System so that the Golden Tax Project System can promote a balanced allocation of funds between local governments balanced.