Research on the Condition of Paying Tax for Individual Commercial Households without Setting up an Account: A Case Study in X District, X City

Individual commercial households have always been the toughest group for taxation since they have not normative account, and some of them even without any record. So the local tax authorities have to determine a fixed taxation standard periodically for them in accordance with approved procedures. Although this method is comparatively scientific, many questions do exist. One of the questions is that the tax authorities have not a clear basis for determining the fixed taxing amount because of the over-principled procedures, and another question is that some leak of management emerges in the process of implementing those procedures. These questions caused troubles in two areas: first, a part of individual commercial households without setting up an account will have a private bargain with the authorities to cut down their standards of fixed tax amount, causing great loss of state revenue; second, the subjective intention of authorities on determining the standards will repress the enthusiasm of individual commercial households as well as their development, which is unfavorable to establishment of social order for fair competition. It is one of the issues concerning the source of taxation and economic development of the country that how to standardize the verifying procedures of tax authorities strictly according to certain regulations and laws.