2. The power to interpret the tax law is decentralized. The actual interpretation right of tax law is not closely related to the formulation right of tax law. NPC or the State Council, which formulates tax laws and regulations, rarely interprets tax laws, and mainly authorizes tax law enforcement agencies such as People's Republic of China (PRC) Ministry of Finance and State Taxation Administration of The People's Republic of China to interpret them. The division of responsibilities between competent departments is not clear in law, and the boundaries are not clear in practice. There are many interpretations of the same clause, which often makes people feel at a loss. Due to the untimely interpretation of the tax law by the competent authorities and the disharmony between various interpretations, local governments and tax authorities below the provincial level often interpret the tax law beyond their authority, resulting in inconsistent and irregular interpretation of the tax law.
3. The form of tax law interpretation is not uniform. There is no uniform standard for the name and form of tax law interpretation text. The existing tax law interpretations are mostly issued by the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China in the form of decisions or orders, and their names are mostly notices, replies, regulations and replies. At the same time, there is no clear stipulation on the method of interpretation and no specific explanation on the reasons for interpretation, which are generally summarized as "strengthening tax collection management" or "standardizing tax law enforcement". In addition, there is no strict correspondence between the content and form of tax law interpretation, which leads to the confusion of tax law interpretation form.
4. The interpretation of tax law is not operable. The interpretation of tax law should be close to the reality of tax work, which has practical guiding significance and maneuverability in dealing with the facts of tax cases. However, in practice, some tax laws are very abstract, without detailed and clear norms and guidance, and lack of operability.
5. Conflicts in the interpretation of tax law. The departments with the right to interpret only explain the tax elements of the taxes under their jurisdiction, which leads to some conflicting or uncoordinated explanations; Some explanations are unscientific and unreasonable, and do not seriously consider the internal relations between other tax-related matters, resulting in contradictions between explanations and tax management objectives. Taking the operating cemetery as an example, according to the provisional regulations on business tax, funeral services are exempt from business tax. The connotation of this tax preference is to support the development of social welfare. However, the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China on Business Tax of Operating Cemetery (Caishui [2000] 1 17) stipulates that funeral services provided to operating cemeteries, including the transfer of cemetery use rights, are exempt from business tax. As a result, the scope of this tax preference has been extended from the labor tax exemption of funeral services to the tax exemption of the whole industry. This explanation not only undermines the fairness, continuity and stability of the preferential tax system, but also runs counter to the macro-control policy of the state to control the approval and use of land.