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Abstract
It is convinced that the current tax preferences in tax-free income and deduction of Individual Income Tax still exists numerous unfairness, what is more, the classified categories of consolidated income are also indefinite, which might be on account of the necessary costs and expenses are permitted to be deducted in some categories of income, whilst only parts of income can be subject to taxation after a fixed deduction. In the event of failing to conduct an appropriate classification of income will affect consequently its accuracy to calculate the amount of consolidated income and tax. In addition, the school's tax withholders cannot be applied for being remitted from punishment on presentation of a supplementary tax declaration and a payment of taxes without fulfilling their obligation to file withholding tax. Therefore, to some extent there is a demand to improve and appraise the related provisions as well.
According to the conclusions of this study, certain recommendations can be provided as follows:
Firstly, the proposal to abolish tax-free provisions on the duty allowance of school employees in supervisory positions is advised; special deduction for savings and investment should be repealed or amended.
Secondly, the proposed amendment to part-time or adjunct income from salaries and wages can be deducted necessary costs and expenses to comply with tax equality; The distinction of remuneration for speeches and lectures on an hourly basis is still in doubt, we recommend there should be a requirement to specify them clearly.
Thirdly, the school's tax withholder failing to do their duty to file withholding could be applied for being remitted from punishment on presentation of a supplementary tax declaration and a payment of taxes; however, the tax withholder in public and private schools who violates the provision, Income Tax Act should be given the same punishment for the purpose of fairness.
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