China and Inner Asia
Organized Panel Session
Income Tax was a new and important tax transplanted from the West during the late Qing Dynasty and the beginning of Beiyang period. The government made legislation and tried to collect but suspended because of the strong objection from the Chambers of Commerce and other social groups. Till 1936, the Nationalist Government restarted and made it completely. Based on the law of fiscal income and expenditure, income tax belonged to the central government. The local government could share about twenty to thirty percent of the total amount.
This research is on the implement of income tax in Guangdong and the relationship between the local government and the taxpayer. The paper includes three parts. At first, i will discuss the problem about the implement of Income Tax between 1936 to 1945. At that time, Chen Jitang was the governor of Guangdong Province and he was opposite to Chiang Kai-shek, but actually, he also hope to take the new tax. Secondly, I will discuss the policy of implement of Income Tax from 1945 to 1949. The National Government issued the Act of Income Tax formally and order the local government to make more efforts. Thirdly, i will discuss the response of the merchants and self-employees. As the representative group of taxpayers, the Chambers of Commerce and the trade associations had to help the government to collect the tax, but they also protested against it. I will analyze implement of income tax in the perspective between the local governmental finance and the taxpayers.