The Legal Dilemma of China's Tax Law Regulatory System in the Context of the Epidemic and Its Resolution

Abstract

In early 2020, a new outbreak of coronavirus pneumonia broke out and quickly swept the world. In mid-2020, after the epidemic had been brought under control, China tried to gradually resume production to innovate and boost its economy. However, the epidemic soon returned. As it rebounded, China had to resume its embargo policy and its already fragile economy was hit hard again. As the epidemic continues, China is realizing that the epidemic will continue and that the economy will need new policies to support the normalization of the epidemic. New tax policy adjustments will naturally need attention. The Chinese government has already provided tax incentives to taxpayers affected by the epidemic, and these policies have effectively contributed to the socio-economic recovery. It should be noted, however, that China has not made timely adjustments to its tax system in the face of health emergencies and that even the current tax incentives, which have been marginally effective, are temporary rather than permanent measures. This paper sets out to analyze the strengths and weaknesses of China's current taxation system in the face of public emergencies, such as health emergencies. Using a normative analysis, it is concluded that the reason why taxation schemes are difficult to implement in the current legislative context is that the description of taxation in both higher law and local regulations is rarely relevant to public events and needs to be supplemented. At the same time, a study of actual cases suggests that the reasons for the difficulty in implementing tax measures are also related to the legislation. Finally, after taking into account the existing effective measures both at home and abroad, the author believes that the tax law should be improved, starting with the improvement of the relevant constitutional provisions and the establishment of a complete response system for similar public security incidents.