Abstract: First of all, the necessity of the existence of tax administrative penalty discretion. The power of tax administrative punishment is the power of tax authorities to punish citizens, legal persons and other organizations that violate tax laws and regulations. It is a compulsory power of administrative punishment, and the power of tax administrative punishment has the nature of discretion from the day it is legally produced. This requires the tax authorities to determine whether to punish, what to punish and what to punish according to the specific circumstances of illegal acts within the scope of legal discretion. So as to make a punishment decision and implement the punishment. Therefore, under the premise that legislative rationality cannot solve all problems, we must respect the rationality and choice of administrative power, otherwise it will increase the burden of law and reduce the efficiency of law enforcement in society.