Document Type



This article discusses the effort of the People's Republic of China (PRC or China) to obtain revenue through taxes rather than through receipt of profits from state enterprises. In order to strengthen the tax system, in 1992 the Standing Committee of the National People's Congress enacted the Law of the People's Republic of China to Administer the Levying and Collection of Taxes (Tax Administration Law). The authors evaluate the PRC’s Tax administration Law, and discuss the factors that influenced the enactment of the Tax Administration Law and the Implementing Regulations. The authors also examine the Tax Administration Law’s general principles, and conclude that the Tax Administration Law cannot function effectively until China trams sufficient administrative and judicial personnel and alleviates "tax illiteracy" among its citizenry.