download lottery download and How to find it

Home

　　Keywords: Virtual Property, Property Attributes, Rights and Relationships, Remedies

　　Abstract: With the entry into the network age, a variety of online services are flooding the market, and the globally popular online games are the most representative. This paper takes the equipment of online games as an example to explore the legal nature, necessity, and methods of protecting virtual property.

　　In April 2004, the court upheld the judgment of the first-instance Beijing Chaoyang District People’s Court, ordering the online game operator, Beijiling Company, to restore the lost virtual weapon equipment of the game player Li Hongchen and compensate the plaintiff for the economic losses incurred by the lawsuit, totaling 1,140 yuan. On March 27 of this year, following the conclusion of the first case of stolen virtual property in China, the Intermediate People’s Court of Lishui City made a first-instance judgment, severely sentencing two ‘Q Coin Bandits’, Xu and Chen, for the crime of theft. Since then, the issue of protecting ‘property’ in the virtual world has sparked widespread public concern.

　　With the continuous development of network technology, online games and various virtual spaces have become increasingly popular. Players obtain various ‘weapons’, ‘rankings’, and ‘accessories’ by winning the game or buying ‘Q coins’, and these have become the targets of ‘cyber pickpockets’. Thus, a new concept called ‘virtual property’ has emerged. And due to the lack of relevant management systems, whether this kind of ‘virtual property’ belongs to players, whether it is protected by law, has become the focus of attention of the general public and legal scholars.

　　Whether virtual property is subject to the regulation of property law depends on whether it is the object of property rights. As an object without property rights, it must exist outside the human body, be controllable by human power, and meet the needs of human beings. The concept of ‘thing’ in civil law is a concept that is constantly developing. Virtual property is independent of the human body; the start and end of the game are also controlled by players using passwords and other specific methods, which belongs to the category that can be controlled by human power; and this kind of virtual property can make players feel pleasure and a sense of achievement in the possession of ‘property’ during the process of participating in the game, which can also be regarded as having special use value, meeting the special needs of human beings, and theoretically should belong to the object of property rights. The object of property rights has the following characteristics: the main objects of property rights are tangible things; the objects of property rights are specific things; the objects of property rights are independent things. Virtual property can be considered as a specific thing, so whether it belongs to an independent thing? Although ‘virtual property’ cannot exist independently of the network, virtual assets, although produced on the server of a specific game operator, and usually can only be stored on that specific server, controlled by players themselves, therefore, it should be considered to have relative independence; virtual property does not belong to tangible things, nor is it other rights outside the ownership of the law, but with the development of human life and entertainment methods, the scope of objects as property rights is also expanding. The expansion of the concept of ‘thing’ includes network virtual property. The 71st and 75th articles of our country’s ‘General Principles of Civil Law’ have made relevant provisions, and the legitimate property of citizens and legal persons is protected by law. Today’s world is in the era of knowledge economy, and the concept of wealth has undergone an essential change. Property is no longer limited to tangible things, but mainly manifested as intangible property. Therefore, this ‘property’ includes both tangible property and intangible property. Virtual property formed in the network world has many properties similar to real property. In terms of its source, there are mainly two aspects: one is to buy it with real money, and the other is to win it by spending a lot of time and energy through ways such as ‘passing levels’. And, virtual property consumes a lot of undifferentiated human labor, and should have value, so virtual property in the network space and other virtual property should be regarded as the object of property rights, and establish ownership and other property rights.

　　For the attribution of ownership of virtual property, it is generally believed that the owner should be the player rather than the online game operator. Ownership is acquired due to certain legal facts, and its acquisition methods include two categories, namely original acquisition and succession acquisition. Original acquisition mainly includes labor production and interest; succession acquisition, also known as transmission acquisition, mainly includes buying, gifting, and barter. In the virtual world, players continuously upgrade their virtual character’s identity through buying, selling, or working hard to play games, in order to obtain virtual goods, which involves both original acquisition and succession acquisition. Moreover, another characteristic of online games is that virtual identities and virtual goods can be continuously preserved, that is, after the player logs off, the operator still stores the player’s data on the server. Therefore, the generation and change of virtual property are not controlled by the operator, but rather the result of specific actions of the player when receiving the operator’s services. The specific types and quantities of virtual characters and property are entirely dependent on the player’s own activities. Operators only provide corresponding services during the game and have no right to arbitrarily modify them. From this perspective, the ownership of virtual property should belong to the player, and such a provision is also conducive to regulating the behavior of operators and ensuring that the legitimate rights and interests of players are not damaged.

　　There is also a major controversy over whether virtual property can be traded. Players have ownership of virtual property. Ownership is defined as a right with comprehensive content of the power of things, and the owner can freely possess, use, benefit, and dispose of his property within the scope of legal restrictions, and exclude the interference of others. From this, it can be seen that as a subject of property rights, virtual property can be disposed of by the right holder, among which ‘disposal’ refers to both factual disposal and legal disposal. In terms of legal disposal, it refers to the change, restriction, or reduction of the rights over things. The sale of virtual property belongs to the legal category of property rights. However, in reality, there is no specific legal provision for online intangible property in our current laws, making the transaction of virtual property very chaotic. Behind the ‘prosperity’ of virtual property transactions, the four links of virus creation – virus spreading – account theft – online sale of stolen goods have already formed a universally recognized industry chain for account theft! The theft and sale of QQ numbers, game accounts, and devices are very rampant, and some have formed gangs, with the amount involved reaching hundreds of thousands of yuan. However, what is embarrassing is that as the judicial system is still in the exploration stage for cases in this field, some local courts even classify such cases as temporarily not受理, seriously damaging the interests of many netizens. The widespread illegal transactions of network virtual items urgently needs to be fundamentally regulated. In this regard, the Chinese government recently issued regulations to limit the use of online games ‘Online casino and How to find it’, and warned that these currencies may pose a threat to the financial stability of the real world. Some members of parliament also proposed that legislation should be enacted to prohibit illegal transactions of virtual property. He believes that after prohibiting illegal intermediary transactions, the stolen virtual property by criminals will be difficult to circulate, and the ‘motivation’ for further theft will be greatly reduced. Normal virtual property transactions allow the owner to make free choices, which can effectively protect the stolen virtual property. This view is not without reason, but the mandatory prohibition without improvement of the existing laws and regulations cannot completely prohibit illegal transactions. Once the legislation is strictly prohibited, it may promote the original transaction forms from above ground to underground, and from domestic platforms to foreign online trading platforms, which will not only cause a huge impact on the current online game industry but also increase the cost of government management.

　　There are the following issues in the regulation of virtual property transactions: Firstly, how to determine the ratio between virtual property and real currency transactions. Should it be uniformly regulated, or decided by the buyers and sellers, or network companies themselves? Secondly, how to manage the real information of netizens, and whether the stolen information of the thief can be disclosed, and whether it infringes on their privacy rights?

　　The Ministry of Culture of South Korea recently submitted a proposal to the National Assembly, requesting the addition of a regulation prohibiting the intermediation of Online casino and How to find it in the ‘Game Industry Revitalization Law’, and it also provides legislative protection for virtual items as a premise. Under the increasingly popular internet, we should also learn from South Korea and take relevant measures to constrain the transactions of virtual property. Specific suggestions are as follows:

　　Firstly, our country should strengthen legal regulation of the Internet, clearly defining the rights and obligations between online game users and operators through legislation. As a new thing, online gaming is currently in a legislative vacuum, and the regulation of online game companies is not perfect. Therefore, it is very necessary to strengthen legislation on the Internet to regulate the behavior of both parties in the online company and player relationship, which is of great significance for protecting virtual property on the Internet and can prevent various types of cybercrimes and civil disputes.

　　Secondly, game companies should strengthen self-discipline in the industry, such as establishing industry associations to formulate various codes of conduct for the industry. For example, how to price various game equipment in online games, there should be a unified understanding among various companies, and they cannot fight alone. This competition among industries can lead to difficult-to-solve problems.

　　Finally, netizens should standardize their online behavior, not randomly click to download unknown software, to avoid inadvertently downloading trojans that steal accounts. Moreover, they should enhance their legal awareness, realize that some of their actions on the Internet are legally liable, and may even lead to criminal liability.

　　Only by integrating the power of society, law, and individuals to protect virtual property on the Internet can various new products of the network age contribute to the growth of social wealth and meet the public’s needs, which is of great practical significance.

　　References

　　[1] Wang Limei. On the Theory of Property Law [M]. China Legal University Press, 2003.

　　[2] Liu Jingwei. Property Law [M]. Xiamen University Press, 2005.

　　[3] Liu Jingwei. General Theory of Civil Law [M]. Xiamen University Press, 2005.

　　[4] Wang Limei. On the Theory of Property Law [M]. China Legal University Press, 2003.

　　In the 2006 Super Girls final, the organizers announced that in addition to the previous mobile phone short messages and voice calls, fans could also vote with Q coins.

　　Q coins are a unified payment method on the Tencent website (1 Q coin = 1 RMB), which can be obtained by purchasing Q coin cards, making phone charges, or bank card charges. Q coins can be used to purchase a series of related services provided by Tencent, such as buying nice numbers, QQ membership services, QQ pets, etc., and can also be used to buy props in QQ games.

　　In fact, the Q coin voting event was a trick by the host of the Super Girls competition, but unexpectedly, it brought along many ‘troubles’: fans, in order to support their favorite singers, bought Q coins for Online casino and How to find it, and the Q coin transactions on Taobao alone exceeded 500,000 yuan in one day. A 25-year-old young man has become a major Q coin seller on Taobao, and he can earn nearly 4,000 yuan a month just by selling Q coins. His Q coins are obtained by reselling equipment in Tencent games or winning them, and he can also buy some Q coins at a low price. A network staff member said that at that time, the wages of the administrators of medium and small forums were Q coins, which were then exchanged for RMB.

　　To trade more freely and conveniently, people have continuously created things that can replace real money, and more than twenty years ago, the game coins of game machines were popular on every street and alley. At the same time as Q币, Sina U币, Shanda Yuanbao, NetEase POPO coin, etc., were also popular. ‘Online casino and How to find it’ has already played the role of ‘currency’ in the virtual world of the Internet.

　　Scholar Yang Tao published an article in the July 2006 issue of ‘Law and News’, stating that according to the ‘Regulations on the Management of Renminbi’, Renminbi is the legal currency of our country, and Renminbi is subject to quantity restrictions in reality. However, Online casino and How to find it such as Q币 can be issued indefinitely. Online casino and How to find it replacing Renminbi as the general equivalent in online transactions is bound to disrupt our country’s financial order, and the consequences of its excess are unimaginable.

　　In fact, Online casino and How to find it is not a foreign concept, but a monetary family that emerged 10 years ago and has gradually grown. From its development process and attributes, it can be mainly divided into two types: one is a currency that operates in a specific platform, especially in online game platforms, virtual communities, and e-commerce websites. According to the provisions of the issuer or regulator, it can only be used to buy and sell virtual items on the respective platform; the other is Online casino and How to find it with more traditional monetary attributes, closer to traditional currency, such as Bitcoin, Ripple, etc. Such Online casino and How to find it, with the promotion of Internet technology and e-commerce, have extended to the traditional monetary system and the real economy field.

　　Each Online casino and How to find it has its own operational mechanism, forming a vast ecosystem through the participation of various parties. Taking Bitcoin as an example, its issuance, payment, exchange, transactions, and even derivative products have formed a unique operational mechanism that is somewhat similar to the traditional monetary system, leading the forefront of Online casino and How to find it. We can even see the shadow of traditional currency on Online casino and How to find it: measure of value, means of circulation, means of payment, means of storage, and world currency.

　　The subversion and rebirth of Bitcoin is another manifestation of people’s disappointment with paper currency.

　　In 2009, Bitcoin emerged with a payment revolution. According to Nakamoto’s Bitcoin ‘Genesis’ paper ‘Bitcoin: A Peer-to-Peer Electronic Cash System’, to some extent, it can reflect the inventor’s original intention: to establish a brand new digital currency system, overcome various disadvantages of the traditional financial system, especially the coin minting model, and bring people more convenient and efficient transactions and circulation.

　　Bitcoin came at the right time. With the development of information technology, the use of paper currency is limited. In addition, against the background of the subprime crisis and the debt crisis, global monetary policy experienced three rounds of systemic easing from 2008 to 2013, leading to the general and continuous over issuance of money, which also triggered concerns about the liquidity of paper currency among the public.

　　Against the background of the impact on the three characteristics of paper currency, the emergence of Bitcoin is very encouraging. The most distinctive feature of Bitcoin is ‘virtual’; it has no natural connection with any reality, which gives it the advantage of shielding many real-life troubles. It is not associated with any country, therefore having super-characteristics, which gives people hope to completely avoid the unnecessary fluctuations of the paper currency exchange rate; it is not associated with any issuer, and has a natural issuance limit of 21 million units, with an increasing cost of incremental issuance, which gives people hope to completely avoid the risk of paper currency over issuance; it is not associated with any regulatory authority, which makes some people dream of the monetary freedom it contains.
online casino platform and The latest entrance
　　Soon, Bitcoin expanded from a small-scale circulation to more specific application environments. You can buy shops and services, make exchanges, conduct cross-border remittances, and even trade Bitcoin itself. Moreover, we can see that the Bitcoin ecosystem unintentionally promotes innovation in many fields during its evolution, for example: mining equipment manufacturers promote the maker spirit, driving hardware innovation through extreme requirements for computational power; after repeatedly being attacked by hackers, Bitcoin trading platforms continuously improve security measures, unintentionally promoting the development of the Internet security field; various institutions provide services such as credit cards, ATMs, and hedge funds based on Bitcoin, continuously promoting the growth of the Bitcoin ecosystem; above all the aforementioned innovations, the most fundamental innovation lies in: linking with the Internet from the bottom of the financial system…

　　From 80 yuan RMB at the beginning of 2013 to the peak of 7,395 yuan RMB, it only took 9 months. After that, its price fell from 7,395 yuan to 2,752 yuan, also in just 19 days. In 2014, after experiencing negative events such as hacker attacks, governments around the world began to strictly regulate Bitcoin, and Bitcoin fell silent. However, this year in September, Bitcoin trading began to pick up again.

　　After Bitcoin was overheated, the speed at which various internet ‘altcoins’ appeared was so fast that it was dazzling, and well-known internet currencies include Litecoin, Mastercoin, Primecoin, Peercoin, Ripple,新星币, and dozens of other types. These internet currencies almost all have a set of complex rules, mixed with unique computer languages. It is difficult to understand and accept these so-called ‘altcoins’ in a short time if you are not a computer professional or have not deeply studied their ancestor – Bitcoin.

　　The invention of Bitcoin and altcoins may be accidental, but it can be determined that the prosperity of ‘Online casino and How to find it’ is an inevitable trend. Whether it is Satoshi Nakamoto or other inventors, the special code they have developed has become an effective medium for online shopping, foreign exchange transactions, and currency trading. In the process of circulation and transactions, this medium naturally has some characteristics of traditional currency, even in a certain sense, a ‘world currency’. It can be said that even without Bitcoin, there will be other similar ‘Online casino and How to find it’ that attract our attention or use.

　　Hackers, politicians, financiers: who will be the ruler of the future currency system?

　　Nowadays, when you need a good book, you can log in to the Amazon website to purchase it with Amazon Coins; when you have set your eyes on a ZARA dress, you can pay with Bitcoin; when you need to send money to a stranger far away, you can do so through Ripple instead of traditional bank transfers. ‘Online casino and How to find it’ has now渗透 into every corner of the world. From gold coins in ‘Diablo 3’ and Facebook points to frequent flyer miles, they are all various forms of ‘Online casino and How to find it’.

　　Currently, a type of social currency has emerged from ‘Online casino and How to find it’. For example, Ripple, which is an open-source payment system for ‘Online casino and How to find it’, aims to build a decentralized system that allows anyone to create their own currency, the only requirement being that someone is willing to exchange their circulating currency for your ‘Online casino and How to find it’.

　　To put it simply, any form of payment system to date requires a unit of account. For example, the world’s largest payment platform PayPal uses dollars, while Alipay in China uses Renminbi. Can you imagine a scenario where Alipay and PayPal can make mutual payments? Ripple can do this.

　　People generally believe that the Internet will subvert finance, just as it has subverted news, music, and retail. However, from the current perspective, Internet technology itself will only make the transaction process more efficient and convenient, such as financial vertical search, mobile payment, P2P lending, etc., but it has not truly revolutionized finance.

　　However, as the core part of the financial power structure, will the currency issuance be shaken by Internet currency? In the face of the surging Internet currency today, who will take the lead? With the strictening of Internet financial supervision, how will the fate of Internet currency be?

　　Maybe we don’t have a clear answer now, but it can be foreseen that with the strong support of Internet technology and ideas, various forms of Internet currencies are already influencing people’s lives, communication, and payment methods. People begin to guess whether there is such a possibility in the future: Online casino and How to find it will eventually replace actual currencies such as the dollar and euro issued by governments.

　　As a visionary in the field of virtual economy, British economist Edward Castronova believes that Online casino and How to find it provides a convenient solution for economic, social, and business activities, and creatively proposes that the next generation of payment system will be a digital value transfer system. He clearly explains: the future development of currency relies on the virtual world and gaming, rather than traditional financial institutions and governments.

　　Now, looking back at the saying ‘whoever controls the dollar, controls the world’, it not only demonstrates the great power of global reserve currencies (whether dollars, pounds, or euros), but also shows us the powerful forces behind the currency issuers and financiers. Whether it is the Rothschild family in the past, or the Morgan and Rockefeller families later, we can see the inseparable relationship between financiers and politicians, and their invisible control over the world economy and politics.

　　Keywords: Online casino and How to find it; consumption stimulus effect; reference point; loss aversion; cash preference

　　Chinese Library Classification Number: F8309 Document Code: A

　　Article Number: 1000176X (2015)11001107

　　Introduction

　　With the deep development of internet applications and the maturity of electronic payment and settlement technology, Online casino and How to find it is becoming more and more popular, playing an increasingly important role in economic activities. Currently, the research on Online casino and How to find it is mainly concentrated in the definition and differentiation of concepts, the impact on traditional monetary theory, the impact on the real monetary system, financial supervision, tax collection and administration, and consumer adoption behavior, involving less research on the consumption behavior of Online casino and How to find it. Regarding the impact of Online casino and How to find it on consumption, there are mainly three views: first, the benefits brought by the electronic form, including fast payment and settlement, avoiding problems such as change, loss, and counterfeit money, which increases people’s willingness to use. Second, it is believed that merchants can improve technology, adopt relevant factors, and increase the willingness to use Online casino and How to find it, thereby increasing consumption [1-2-3]. Third, it is believed that merchants can use Online casino and How to find it to implement rich and flexible marketing strategies, thereby promoting people’s consumption [4-5].

　　However, the aforementioned research does not involve three issues: first, the convenience of electronicization is not unique to Online casino and How to find it; electronic currencies represented by bank cards have similar characteristics, and the unique role of Online casino and How to find it in stimulating consumption needs to be explored. Second, the enhancement of willingness to use only represents the consumer’s choice of payment methods, and does not necessarily mean that consumption will increase accordingly; the real effect of Online casino and How to find it in stimulating consumption needs to be investigated. Finally, the increase in consumption achieved through marketing strategies is ultimately due to marketing factors, and Online casino and How to find it may have a regulatory effect on marketing effectiveness, or may have a direct promotional effect on consumption, which needs further research. In order to do so, Li Qi and Li Pei [6] have demonstrated through experiments that Online casino and How to find it has a unique role in stimulating consumption, namely the consumption spillover effect. Based on the existing research, this paper further discusses the influencing factors and mechanisms of this stimulation effect, and verifies the theoretical results through a series of laboratory experiments, in order to lay the groundwork for subsequent research.

　　Second, Theoretical Analysis

　　1 Online casino and How to find it and Liquidity Dilution

　　The definition of ‘Online casino and How to find it’ and its scope in academia are still controversial, and the extension is not clear [7]. Therefore, scholars often use working definitions according to their discussion needs. This article adopts the official definition given by the European Central Bank: a lottery and How to find it that is not regulated by (monetary authorities), usually issued and controlled by manufacturers, and accepted and used in specific virtual communities. See the European Central Bank’s research report ‘Virtual Currency Schemes’ from October 2012. According to the circulation relationship with real currency, Online casino and How to find it can be divided into three categories: the first is non-circulating, such as in-game props currency, forum points, etc. The second is one-way circulation, that is, only real currency can be exchanged for Online casino and How to find it, and vice versa is not possible. Most Online casino and How to find it belong to this category, such as Tencent’s QQ coins, commercial pre-paid cards, etc. The third is two-way circulation, such as Bitcoin, Linden dollars, etc. This classification essentially reflects the differences in the liquidity of Online casino and How to find it (from low to high). This article selects the second category of Online casino and How to find it, which is the most widely used, as the object. Unless otherwise specified, the term ‘Online casino and How to find it’ here refers to the second category of Online casino and How to find it. The study focuses on its impact on people’s consumption behavior.

　　Since Online casino and How to find it does not provide an official redemption method, the discount of Online casino and How to find it can only be realized through spontaneous off-market transactions between consumers. In fact, there are many trading platforms on the Internet related to Online casino and How to find it, such as Taobao, a comprehensive trading website, 58.com, and Ganji.com; as well as 5173, a game trading platform specializing in Online casino and How to find it transactions. However, a significant transaction cost will arise due to the one-way liquidity of Online casino and How to find it. Firstly, there is the search cost for both buyers and sellers, who have to find information on supply and demand through public information platforms, thereby bringing time costs and uncertainty. Secondly, due to the lack of an official settlement system for Online casino and How to find it, or the absence of transfer services in Online casino and How to find it platforms, buyers often need to provide sensitive account information to sellers to complete the transaction, which brings certain risk costs. Finally, since buyers can purchase Online casino and How to find it through official channels, sellers usually need to sell Online casino and How to find it at a price below the market price. If Online casino and How to find it is regarded as an asset, a price discount will occur during the process of converting it into real currency, which is called liquidity impairment and is denoted as σ=ps/pb (ps is the selling price or transaction price; pb is the buying price or issue price). In fact, all three types of Online casino and How to find it have varying degrees of liquidity impairment, so the conclusions of this paper can be applied to the consumption of the other two types of Online casino and How to find it. The difference is that the first type of Online casino and How to find it also needs to consider the differences in personal value brought by reputation and cultural factors, while the third type of Online casino and How to find it can be regarded as a special case of the second type, where the liquidity impairment is close to 0, resulting in an insignificant change in consumption behavior.

　　2 Reference Point and Transaction Utility

　　This article conducts utility analysis from the perspective of behavioral economics, using a reference-dependent utility function, and considering transaction utility. The reference point is an important concept of prospect theory and has been confirmed by a large amount of empirical evidence. In the case of not involving intertemporal decisions, the reference point is usually the current level of property or welfare [8]. When people hold Online casino and How to find it assets, liquidity impairment has become a sunk cost. The current level of property has depreciated due to the lack of liquidity, so the reference point for people is the wealth value of (1-σ)m. The transaction utility is relative to the acquisition utility, which refers to the value obtained from the commodity itself, that is, the concept of consumer surplus in standard economics. It refers to the perceived value of the transaction itself. In the context involving the reference point, it refers to the difference between the reference price and the payment price. When the actual payment is less than the reference point, positive utility is obtained, and when the actual payment is greater than the reference point, negative utility is obtained [9]. When people consume Online casino and How to find it, they can not only obtain utility from the consumption of the commodity, but more importantly, the consumption behavior itself avoids the realization of liquidity impairment caused by the realization of Online casino and How to find it, avoids the loss brought by liquidity impairment, and therefore, additional transaction utility is obtained. Taking the wealth value of (1-σ)m as the reference point, this part of utility is u(σm).

　　3 Loss Aversion and Cash Preference

　　Online casino and How to find it consumption not only brings additional transaction utility but also reduces the cost of consumption, mainly reflected in people’s two psychological laws: loss aversion and cash preference. Loss aversion is another important concept in prospect theory, indicating that the utility reduction caused by loss is higher than the utility increase brought by the same gain, which can be expressed by the loss aversion coefficient α=-u(-m)/u(m) (u(-m) is the negative utility brought by loss, u(m) is the positive utility brought by the same gain, and m is the wealth value). At the same time, many empirical evidence shows that people are more sensitive to cash when measuring different types of wealth, which is called cash preference in this paper. Cash preference implies people’s preference for liquidity. The use of the term ‘cash preference’ comes from the empirical research that discovered this preference, most of which takes cash as the reference system. It indicates that the importance of real currency exceeds other types of currency and monetary substitutes. When people face gains, the utility of holding real currency is greater than Online casino and How to find it; when facing losses, the loss of holding real currency is greater than Online casino and How to find it. The size of the cash preference effect can be expressed by the cash preference coefficient β. When facing gains, β=v(m)/u(m); when facing losses, β=v(-m)/u(-m) (v(m), v(-m) are the utility of holding Online casino and How to find it gains and losses, u(m), u(-m) are the utility of holding real currency gains and losses).

　　3. Experimental Design

　　The subjects of this experiment are 60 undergraduate students majoring in e-commerce at Wuyi University in Guangdong (male and female students account for 1/2). The experiment adopts a 2x2x2 factorial design, with whether Online casino and How to find it, budget amount, and liquidity impairment level as the main treatment variables. Since the loss aversion level and cash preference degree of the experimental subjects are difficult to control, they are not treated as treatment variables, but they need to be measured to study their impact on consumption volume. The groups are randomly divided as shown in Table 1. Since cash has no liquidity impairment, the experiment is divided into six groups. The grouping method is: separate according to the order of sign-in and gender, the male (female) student who signs in at the i + 6jth position is in the i group (i = 1, 2, …, 6; j = 0, 1, …, 4). All experimental processes are completed on the computer, and communication is prohibited. The experimental subjects have not received training in decision theory. To avoid demand effects, to cater to the needs of the experimenters and make the choices expected by them, here it refers to intentionally distinguishing the consumption volume under two different situations, such as exaggerating the consumption volume of Online casino and How to find it, or reducing the cash consumption volume, thereby hiding the true intention. The between-group design is adopted, so that each experimental subject only experiences one consumption situation.

　　The experimental process is carried out in two stages:

　　The first stage is to measure the risk attitude, loss aversion level, and cash preference degree of the experimental subjects. The measurement of risk attitude follows the experimental mechanism in the paper by Li Qi and Li Pei [6]. The measurement of loss aversion level and cash preference degree also adopts a similar mechanism, but the scene design is different. Due to space limitations, the process is omitted.

　　The second stage is the consumption of holding currency. Q币 is chosen to represent Online casino and How to find it, and lottery tickets are used as the consumption target. The specific process is as follows:

　　(1) Each experimental subject is given a certain amount of initial assets (as shown in Table 1).

　　(2) The experimental subjects are required to participate in a lottery game. The rules are: purchase lottery tickets with the assets allocated for the experiment, mark their experimental number on the purchased tickets, and at the same time, the cash or Q币 spent will enter the prize pool. Each lottery ticket costs 1 yuan (Q币). After purchasing, the experimenter will randomly select one ticket from all the tickets as the winner, and the prize is twice the total assets in the prize pool.

　　(3) After the consumption is over, the experimental subjects can retain the remaining assets they hold in the end. For the cash group (groups 1-2), the experimental subjects can directly take away the cash, while for the Q币 group (groups 3-6), they can choose to recharge the Q币 they hold into their QQ accounts, or exchange the Q币 at the specified exchange rate for cash to take away.

　　4 Results analysis

　　1 Descriptive statistics and randomized effect test

　　According to the experimental data, calculate the risk preference, loss aversion, and cash preference coefficients of the experimental subjects. On average, the experimental subjects show approximate risk neutrality (0.970), obvious loss aversion (1.980), and cash preference (4.140). In terms of dispersion, the differences in risk attitudes among the experimental subjects are not significant (0.190), indicating that using lottery tickets as a consumption target can to some extent avoid the impact of individual preference differences; the dispersion of loss aversion (0.600) and cash preference coefficients (2.060) is relatively large. In terms of consumption volume, there is a significant difference between the 5th and 6th groups and the first 4 groups.

　　To test the randomized grouping effect, compare the differences in risk preference coefficients, loss aversion coefficients, and cash preference coefficients between groups. The Kruskal Wallis test results are shown in Table 2. From Table 2, it can be seen that there is no significant difference in the three coefficients (p-value significantly higher than 0.05), indicating that the intergroup differences in the consumption volume of the experimental subjects are only related to the selected treatment variables.

　　2 Consumption spillover test

　　To measure consumption spillover, compare the consumption results under the same budget. In this experiment, the comparison between the 1st group and the 5th group, or the 2nd group and the 6th group can be selected. ① Perform the Mann-Whitney U test for the difference between two independent small samples, the results are shown in Table 3. From Table 3, it can be seen that there is a significant difference under both 10 yuan and 50 yuan budget, and the results all support H1.

　　3 The impact of liquidity impairment on consumption spillover

　　Under the same budget, compare vm, σ=0-cash with vm, σ=05-cash, that is, compare the difference between vm, σ=0 and vm, σ=05 (average consumption volume) to test the impact of liquidity impairment on consumption spillover. In this experiment, the 3rd group and the 5th group, and the 4th group and the 6th group were selected for comparison. The test results are shown in Table 4. From Table 4, it can be seen that there is a significant difference in intergroup consumption under both 10 yuan and 50 yuan budget, and the results all support H2.

　　4 The impact of budget on consumption spillover

　　To test the impact of budget on consumption spillover, we need to compare the difference between 5-1 and 6-2 (i represents the mean consumption of the ith group). The measurement of consumption spillover is obtained through two independent samples rather than paired samples, therefore, before taking the difference, the 4 groups of sample data are first converted into ordered data (this paper adopts descending order). Consumption spillover is measured by subtracting high (low) consumption at Online casino and How to find it from high (low) cash consumption, thus achieving a certain degree of matching. This sorting method does not change the mean consumption spillover, but can better reflect the consumption spillover value of each sample point, making the rank sum test more meaningful. The test results are shown in Table 5. From Table 5, it can be seen that there is a significant difference in the impact of budget on consumption spillover, supporting H3.

　　5 The impact of cash preference on consumption spillover

　　The impact of cash preference on Q coin consumption is tested through the results of the 3rd to 6th groups of experiments. Since cash preference was not designed as a treatment variable, the cash preference coefficients of each group are converted into a binary variable at the median, representing low and high cash preference. The test results are shown in Table 6. Table 6 shows that there is no significant difference in the risk preference and loss aversion coefficients between the low and high cash preference subjects in each experimental group, while the consumption volume shows a significant difference, indicating that cash preference significantly affects the volume of Q coin consumption.

　　In the 3rd and 4th groups, the subjects with low cash preference showed a higher tendency to consume Q coins, because the experiment set the liquidity impairment rate of these two groups to 0. Since the experimental subjects can exchange Q coins for equivalent cash at no cost, it makes the subjects with high cash preference give up consumption and choose to exchange more Q coins for cash, that is, the higher the cash preference, the more Q coins are given up, which does not conflict with H4. In the 5th and 6th groups of experiments with liquidity impairment, the subjects with high cash preference showed more consumption of Q coins, which supports H4.

　　① Due to the existence of liquidity impairment in reality, the results of the 5th and 6th groups are chosen as the consumption situation of Online casino and How to find it. The 4th and 5th groups are designed to verify the size of the impact of liquidity impairment.

　　6 The impact of loss aversion on consumption spillover

　　When testing the impact of loss aversion on consumption spillover, the same treatment as that of cash preference is adopted. The results are shown in Table 7. Table 7 shows that only the 4th group found a significant relationship, and it cannot completely exclude the influence of cash preference (the difference in cash preference is close to being significant), which does not support H5. The reasons for the deviation from the hypothesis may include:

　　(1) The sample size of the experiment is too small, and the results may be accidental.

　　(2) The experimental subjects show a tendency to dislike losses, but due to the lack of control over loss aversion, the degree of aversion is not significantly different, and it cannot distinguish the degree of attention of the experimental subjects to the cost of consumption.

　　(3) The experimental environment is relatively complex. Due to the existence of cash and Q coin exchange in the experiment, as well as the complex choices involving probability and game theory, it may cause the attention of the experimental subjects to focus on ‘rational’ thinking such as the calculation of liquidity impairment, expected return and cost, and ignore the aversion to cost reflected in the real consumption process.

　　7 Discussion on Robustness

　　(1) The influence of the number of experimental samples. Due to the limitations of experimental funds and the ability to recruit experimental subjects, this experiment recruited 60 undergraduates to participate. After grouping, the sample size of each group was 10. Although it meets the conditions for non-parametric tests, more sample size is helpful to more clearly show the real relationship between variables, especially in the test of the relationship between non-significant loss aversion and consumption spill-over. Conversely, for the significant part of the experimental results, the relationship shown by a small sample also has a strong persuasiveness.

　　(2) About the real monetary incentive. Due to the restriction of funding conditions, real monetary incentives were not used in the experimental stage, but the subjects were asked to make consumption choices in a hypothetical situation, which raises the question of whether the subjects expressed their true intentions. Tversky and Kahneman [8] believe that there is no problem, and they also did not use real incentives when measuring risk attitudes and loss aversion factors; Camerer [13] examined the effect of incentives using hundreds of samples and found that the reactions of actual participants in the game and those who did not actually participate (similar to the situation of this experiment) were basically the same. In fact, in the face-to-face supervised real experimental environment, the possibility of the subjects’ disinterest in answering questions is greatly reduced; and the experimental remuneration given in advance and the irrelevant right or wrong experimental questions further increase the reliability of the results.

　　(3) The external validity of the experiment. Whether the experiment using QQ coins can represent all Online casino and How to find it? The key premise of this paper’s theoretical model is the liquidity loss of Online casino and How to find it, and the experiment did not impose special restrictions on QQ coins. Therefore, as long as it meets the characteristics of liquidity loss, such as higher credit of the issuer and a large number of goods that can be purchased, it will cause higher liquidity, which in turn leads to less consumption spill-over, but it does not affect the basic conclusion of this paper.

　　Five, Conclusion and Recommendations

　　This paper analyzes the stimulative effect of Online casino and How to find it on consumption based on the prospect theory and psychological accounting theory, and concludes that: Unlike other electronic currencies or promotional strategies, Online casino and How to find it itself can bring unique consumption spill-over effects, mainly from two aspects: First, due to the improvement of transaction utility by avoiding the liquidity loss. Second, due to the reduced sensitivity to cost caused by cash preference. The size of the consumption spill-over is mainly determined by liquidity loss, people’s aversion to loss, people’s cash preference degree and budget wealth, and when the liquidity loss is higher, the aversion to loss is lower, the cash preference degree is higher, and the budget wealth is greater, the consumption spill-over effect will be more obvious.

　　The research conclusion shows that the issuance of Online casino and How to find it not only can bring cash-out benefits and potential idle capital for merchants, but more importantly, it can bring more consumption. This means that merchants do not have to rely on high-cost discounts and promotional activities to stimulate consumption. Specifically: Firstly, reducing the liquidity of Online casino and How to find it can increase consumptionlottery online websiteClick to enter. Merchants can reduce liquidity by raising the threshold for virtual-to-physical transactions, such as non-reversible exchange of real currency, not providing the function of Online casino and How to find it gifts, etc. However, reducing liquidity will reduce people’s willingness and quantity to hold Online casino and How to find it, for which exclusive products can be developed for Online casino and How to find it, or Online casino and How to find it can be sold as gift cards to other companies for employee welfare distribution or sold to individuals who need interpersonal consumption. Secondly, when issuing Online casino and How to find it or using Online casino and How to find it for promotional purposes, merchants should choose groups with higher loss aversion tendencies and stronger cash preferences more. Loss aversion is usually accompanied by risk aversion, and the typical population is low-income and unstable-income groups such as students and retired elderly people; the typical population with a strong cash preference is usually low in the acceptance of new technologies, such as middle-aged and elderly people. Finally, holding a higher capacity of Online casino and How to find it can bring higher consumption spill-over, which means that issuing large-denomination Online casino and How to find it is more beneficial for increasing sales than small-denomination currency.

　　References

　　[1] Shin, DH. Understanding Purchasing Behaviors in a Virtual Economy: Consumer Behavior Involving Virtual Currency in Web 2.0 Communities[J]. Interacting with Computers, 2008, 20 (4-5): 433-446

　　[2]Sun Xuan Research on Consumer Behavior under Virtual Payment Conditions[D]Shanghai: Master’s Thesis of Fudan University, 2012

　　[3]Zhao Tui, Wang Xiaodong Empirical Research on Payment Behavior of Online Casino and How to Find It Based on the Integrated Model of TAM/TPB[J]Prediction, 2013, (3): 55-59

　　[4]Qin Cong On the Narrow Definition of Online Casino and How to Find It [J]China Soft Science, 2010, (2): 187-192

　　[6]Li Qi, Li Pei Online Casino and How to Find It: Whether It Stimulates Consumption – A Discussion from the Perspective of Behavioral Economics[J]Statistical and Information Forum, 2015, (8): 31-36

　　[7]Sun Baowen, Wang Zhihui, Zhao Yinyin Electronic Currency and Online Casino and How to Find It: A Comparative Study[J]Journal of Central University of Finance and Economics, 2008, (10): 52-59

　　[8]Tversky, A, Kahneman, D Advances in Prospect Theory: Cumulative Representation of Uncertainty[J]Journal of Risk and Uncertainty, 1992, 5 (4): 297-323

　　[9]Thaler, R Mental Accounting and Consumer Choice[J]Marketing Science, 1985, 4 (3): 199-214

　　[10]Soman, D Effects of Payment Mechanism on Spending Behavior: The Role of Rehearsal and Immediacy of Payments[J]Journal of Consumer Research, 2001, 27 (4): 460-474

　　[11] Mazar, N., Amir, O., Ariely, D. The Dishonesty of Honest People: A Theory of Self-Concept Maintenance[J]. Journal of Marketing Research, 2008, 45 (6): 633-644

　　[Keywords] Virtual Property, Legal Attributes, Civil Law

　　Firstly, an overview of virtual property

　　So-called virtual property exists in a virtual environment on the internet, based on online games using computer networks, stored on servers, and can be called up, created, or joined by game players at any time. Its forms include virtual characters, virtual money, virtual equipment, and other various virtual items. The mainstream views in the field of Chinese law on the legal attributes of virtual property can be summarized as follows:

　　Firstly, it has the attributes of property rights. Professor Yang Lixin explicitly pointed out: ‘Regarding network virtual property, Chinese civil law confirms that it has the attributes of things. Whether it is the internet itself or virtual property on the internet, both belong to things under civil law and should be fully protected by civil law.

　　Secondly, it has the attributes of债权 (liability). Players purchase services from game operators by paying money, establishing a network service contract relationship with the operators, and obtaining specific services provided by the operators based on this contract relationship. Therefore, the rights of players over virtual property in online games should be identified as a liability relationship.

　　Thirdly, it has the attributes of intellectual property rights. Players invest a lot of time and effort in the gaming process, engaging in creative labor. Therefore, the rights that players enjoy over virtual property can be regarded as intellectual property rights.

　　Fourthly, the right to virtual property is a new type of property right. As a product of the development of the internet, especially online games, classifying virtual property into any traditional property rights is flawed. It is a new type of property right that can be called ‘virtual property rights’.

　　Secondly, the legislative status quo of virtual property identification

　　The development of the gaming industry has created tremendous economic benefits for society and has become a huge industry. However, the limitations of its self-regulatory mechanisms are gradually becoming apparent, and frequent disputes over virtual property infringement have followed.

　　Firstly, the legislative protection status of virtual property in China. Currently, there is no legislation in China regarding the protection of virtual property, and the lack of a clear legal protection mechanism makes the infringement on citizens’ virtual property rights a common issue.

　　There is no clear legal basis for determining whether virtual property belongs to the scope of personal property as defined in the General Principles of Civil Law. The newly promulgated Property Law does not involve whether the right to virtual property belongs to the category of property rights, and the laws and administrative regulations such as the Criminal Law, the Consumer Rights Protection Law, the Decision on Maintaining Internet Security, and the Regulations on the Security Protection of Computer Information Systems that have already been implemented do not explicitly protect network virtual property.

　　Second, the legislative protection status of virtual property in foreign countries. In South Korea, the law has evolved from initially prohibiting the trading of virtual items to recognizing the legality of virtual items, and has explicitly stipulated through legal means that virtual characters and virtual items in online games are independent of service providers and have property value, actually confirming the property rights attributes of virtual property; in Japan, the law explicitly stipulates that virtual characters and virtual items in online games are independent of service providers and have property value, thereby confirming the property nature of virtual property and making it part of private legitimate property; in the United States, virtual property is protected legally through the interpretation of relevant laws by judges, and the network system itself is also confirmed as property through precedents, and the intrusion into the network system constitutes illegal intrusion into movable property.

　　Third, the legislative protection status of virtual property in the Hong Kong Special Administrative Region of China. The Hong Kong Special Administrative Region Government has successively amended various regulations in response to the online sale of virtual weapons in online games in recent years and the phenomenon of theft of virtual property. For example, according to Article 161 of Chapter 200 of the Criminal Offenses Ordinance, if there is a crime or the use of a computer with dishonest intent to obtain benefits for oneself or cause losses to others, the maximum penalty may be imprisonment for 5 years; if property is obtained by fraud, according to the provisions of Article 17 of Chapter 201 of the same Ordinance, the maximum penalty may be imprisonment for 10 years.

　　Therefore, legally protecting the virtual property rights of game players, regulating network order, and imposing corresponding legal sanctions on virtual property infringement has great practical significance.

　　The current judicial status of virtual property identification

　　Faced with the increasingly frequent infringement of virtual property, judicial authorities are in a dilemma of lacking legal and theoretical basis, and insufficient legal basis. Traditional legal theories do not keep pace with the development of modern society and appear somewhat backward. Therefore, it is urgent to strengthen the research on traditional legal theories, so that they can effectively regulate and constrain the infringement of virtual property, and be applied to solve practical problems in the judicial process, ensuring that judicial activities have laws to rely on and better protect the interests of virtual property rights holders. However, in practice, there is a controversy among judicial workers on whether virtual property should be protected at the level of criminal law.

　　On the one hand, some experts believe that when certain conditions are met, criminal law protection can be provided for virtual property. There are many ways to control the infringement of virtual property, and for general infringement of virtual property, administrative or civil penalties can be imposed according to relevant administrative and civil regulations. Only when it is impossible to solve the problem through means other than criminal law can punishment be considered. Therefore, when network game operators can regulate through technical means, there is no need to involve the law. Some people also believe that law cannot adjust virtual social relations, but if virtual property is completely denied and not protected, hackers will泛滥, and the theft of others’ virtual property will become prevalent, which will inevitably lead to chaos in network order and is not conducive to the development of the network game industry. Therefore, only when the violated virtual property in the network has a legal connection with real social relations, can criminal law adjustment be applied.

　　On the other hand, some experts believe that there should not be criminal protection for virtual property. The main reasons are: first, the protection of virtual property in criminal law is not operable and conflicts with our understanding of traditional criminal law concepts. At the same time, due to the intangibility, instantaneousness, trans-temporal and spatial characteristics, and the difficulty of identification of network virtual property infringement behaviors, as well as the limitations of local economic development and network technology levels, this brings great difficulties to the police in investigating cases and collecting evidence. Secondly, since the network world is a world that changes instantly, which is contrary to the stability characteristics of law, protecting virtual property through legislation and even to the level of criminal law is too blind and may have a negative impact on the development of the gaming industry.

　　Therefore, under the current situation, we should treat the legislation of virtual property cautiously, and maintain network order by fully utilizing the rules of the network itself.

　　Four, the definition of the legal attributes of virtual property

　　Through the analysis of the concept of virtual property and the current legislative and judicial situation in our country, the author believes that the legal attributes of virtual property should be identified as property rights.

　　Firstly, virtual property conforms to the concept of things in civil law. Virtual property should be identified as an intangible property, which evolves from actual property. Players can obtain it in the game by spending time, energy, and money, and can purchase it from game operators, as well as from online casino and How to find it trading markets. Virtual goods are purchased by players with money, and at the same time, these virtual goods also bring players a sense of satisfaction and happiness, which means that virtual property has already possessed the attributes of goods and has real value and utility.

　　On one hand, property rights have a specificity, and with the development of modern science and technology, the meaning and scope of things can be interpreted broadly. In order to reasonably allocate limited social resources and maximize the effectiveness of wealth, virtual property must also be given a legitimate status and appropriate protection. On the other hand, the direct control of the subject of rights by the owner of property rights in the modern sense is no longer limited to the state of actual possession, but has expanded to the connection of rights. Although game players do not directly control the virtual property they have obtained, they can actually use and control it, and can also dispose of it freely and be recognized by others. Therefore, it can be肯定 the property rights attributes of virtual property based on the above two aspects.

　　E-commerce is a brand new business model. It involves promoting goods online and settling payment. This quick and convenient marketing method is gradually being accepted by people. The e-commerce of enterprises represents a qualitative leap for traditional business, breaking through the constraints of time and space and promoting the process of economic globalization. According to the research data of IT market research company (IDC), in 2007, the number of Chinese Internet users exceeded that of the United States, which ranked first globally, for the first time: it is expected to reach 375 million by 2012. According to the data of the

　　E-commerce, at its essence, is still a sales activity. If it does not have relevant tax exemption policies, then e-commerce transactions should be taxed in accordance with the law. How to strengthen and improve China’s tax system and tax methods in response to the tax issues in corporate e-commerce has become a hot topic of discussion in tax circles both at home and abroad. On August 7, 2007, a seminar was held at the Beijing International Conference Center in China, affecting 40 million e-commerce users across the country. The topic of the meeting was whether taxes should be levied on the group engaging in e-commerce, and most experts believe that the e-commerce industry should not be destroyed because of tax issues. At the ‘Two Sessions’ in 2008, members of the Central Committee of the National People’s Political Consultative Conference jointly proposed a proposal titled ‘On Improving the E-commerce Tax System’: E-commerce is a mode of transaction. According to China’s current tax laws, whether online or offline, taxes should be paid as soon as a transaction is completed; otherwise, there will be an increasing number of businesses and consumers who will evade taxes through e-commerce, and capital flowing internationally through the network will also lead to a large amount of tax loss or transfer. The tax issues caused by the network economy have attracted extensive attention from both domestic and international communities.

　　It is imperative to study the principles, policies, regulations, administration, and how enterprises can legally and efficiently pay taxes under the conditions of online trade. This article aims to analyze the tax issues arising from China’s enterprise online transactions, propose corresponding countermeasures starting from China’s current tax system, and solve the tax difficulties of online transactions.

　　Secondly, the tax issues and impacts existing in enterprise online transactions

　　(One) Inadequate tax administration and collection of online transactions

　　The rapid development of China’s commercial trade has brought opportunities to taxation, but it also poses challenges to the traditional tax administration and collection system. It is difficult to define the taxpayers of enterprise online transactions, applicable tax types, and applicable tax rates, leading to a dilemma of not knowing where to start from the beginning of tax administration and collection.

　　Sales of online transactions by enterprises often lack contracts and agreements, and both parties form transactions through the form of e-commerce (online). The prices on the Internet can be modified, deleted, or changed at any time, making it difficult to obtain real and legal guarantees for sales measurement, and there is always a possibility of not receiving or receiving insufficient payment. The confirmation and measurement of income are the foundation for enterprises to carry out tax management. The concept of ‘income’ for traditional enterprises is very clear and explicit. However, in the online transaction behavior of enterprises, the online transactions of both buyers and sellers are often virtualized, intangible, arbitrary, and concealed. Physical goods exist in the form of digital transmission on the Internet. For the sales revenue of enterprise online transactions, whether it is the realization of product sales revenue online or the realization of service revenue online, it faces the issue of confirmation. How to supervise online transactions to ensure that tax revenue is collected in a timely and adequate manner is a major challenge in tax administration and collection.

　　In the era of online transactions, the virtual nature of the online economy, and the paperless transactions lack tangible carriers. Many transaction objects are converted into digital information and disseminated on the Internet, while the parties involved in the transaction fill out encrypted electronic data forms online. With the maturity of computer encryption technology, taxpayers can use various methods such as encryption and authorization to conceal transaction information. The development of encryption technology has increased the difficulty for tax authorities to grasp taxpayers’ identities or transaction information, making it difficult to determine the identities of buyers and sellers, income is hard to ascertain, and there is no way to collect taxes, resulting in a large amount of tax loss. However, paperless online transactions cannot adapt to the traditional tax administration and collection system for currency transactions, bringing unprecedented difficulties to China’s current tax registration, tax declaration, and tax inspection processes.

　　(Two) The difficulty of tax authorities in investigating and inspecting

　　Under the environment of e-commerce, enterprise online transactions have characteristics such as intangibility, concealment, virtuality, globalization, and speed. The supply and demand sides meet directly online, view samples, negotiate prices, sign contracts, and make payments through the electronic data interchange system, with an increasing degree of paperless online transactions. The objects of enterprise online transactions are all transformed into ‘digital information’ transmitted online, making it difficult for tax authorities to determine the nature and quantity of the transaction objects. Electronic vouchers can be easily modified without leaving any traces, and tax audits and inspections lose the most direct paper evidence, making it impossible to trace. According to a report by Henan Finance on October 18, 2007, online transactions are concluded through paperless operations, with transaction data, books, and vouchers existing in digital form, which can be easily modified without leaving any traces, and taxpayers can use encryption technology to hide relevant information. Currently, tax management and tax inspections mainly rely on written documents such as financial books and financial statements, making it very difficult to collect relevant information about online transactions, leading traditional tax collection and inspection methods into a predicament. Moreover, due to the large scale and numerous objects of online transactions, our country has not established a special tax management and supervision organization for online transactions, and it is difficult for ordinary tax personnel to manage daily affairs.

　　(Three) The current tax laws and regulations in our country are imperfect

　　According to the Provisional Regulations on Value-Added Tax of the People’s Republic of China, individuals and entities engaged in the sale of goods or the provision of processing, repair, and maintenance services within the territory of the People’s Republic of China, as well as those importing goods, are liable for value-added tax. The taxation of online transactions belongs to the value-added tax category. Taxpayers should actively report and pay taxes to the tax authorities. However, the Provisional Regulations on Value-Added Tax of our country do not have clear provisions on the taxation objects, scope, items, and rates for online transactions, with poor operability, mainly manifested in: unclear tax subjects, unclear taxation objects, difficult determination of tax locations, changes in tax collection links, and difficulty in determining legal liabilities. The system of tax registration for enterprise online transactions is not perfect, and the online identity authentication system has not been established yet. Tax authorities do not have information on each company’s website, email address, electronic banking account, and other online data, and are not clear about taxpayers’ tax registration numbers, transaction situations, and tax declaration and payment situations, making it impossible to check and monitor online. With the development of enterprise online transactions, commercial transactions no longer have any geographical boundaries. That is to say, enterprise online transactions utilizing the virtual world of the Internet can no longer rely on the tax laws and regulations of any country to regulate the taxation of online transaction behaviors.

　　Third, countermeasures to improve the tax system for online transactions in China

　　(I) Improve the current tax law and supplement relevant tax provisions for online trade

　　Currently, China does not have any laws and regulations that are配套 with corporate network transactions in terms of taxation, making the issue of online taxation uncertain. Therefore, drawing on international experience and based on the current tax law, clearly define the various elements of the tax system in corporate network transactions, such as the tax payers, taxable objects, tax collection stages, tax collection locations, and tax collection periods, to ensure the establishment of a fair tax legal environment.

　　Establish a special registration system for corporate network transactions, use special invoices for corporate network transactions, establish an electronic declaration and tax payment method, and clarify the legal effect of electronic declaration data; establish the legal status of electronic invoices and electronic ledgers, and clarify the rights, obligations, and legal liabilities of both parties. For example, China can legislate that online traders must be registered and approved by the industry and commerce department and other relevant departments, as without relevant registration, tax authorities have no way to investigate. At the same time, China should accelerate the formulation of fiscal and tax policies to encourage the development of e-commerce, speed up the research and formulation of preferential tax policies for e-commerce, and strengthen the tax and fee management of e-commerce.

　　In response to the characteristics of online trade, redefine the connotation and extension of Internet tax concepts such as residents, source of income, goods, services, and transfer of intellectual property rights, focusing on the revision of circulation tax and income tax laws that are closely related to online trade. The circulation tax mainly includes value-added tax, business tax, and consumption tax. Firstly, the value-added tax law should add provisions for the taxation of tangible trade (offline transactions), specifying that the sale of goods, including all tangible movable property, regardless of how such tangible movable property is realized, is subject to value-added tax; secondly, the revision of the business tax law should include online services within the scope of business tax, count them as part of the service industry, and tax them accordingly, while clearly defining online transactions as ‘intellectual property rights’ and taxing them under the category of ‘transfer of intangible assets’; thirdly, the corresponding income tax should also be appropriately adjusted. For example, if the tax base of income tax caused by online trade arbitrarily shifts between countries, causing international tax avoidance, it will severely impact the distribution of tax interests between countries. Therefore, the improvement of online trade in the income tax law becomes another aspect of tax law revision. Establishing a sound corporate network transaction tax system can regulate the online transaction market, promote a healthy competitive market, and enable it to develop healthily.

　　(Two) Establishing a complete tax calculation and audit network system to achieve tax automation

　　To adapt to the ‘paperless’ nature of the network economy, it is necessary to establish an electronic tax declaration system as soon as possible. Tax collection agencies must first achieve electrification and networking, and connect their own networks with banks, customs, industry and commerce, private networks of network marketers, and even networks of foreign tax authorities, establishing a complete tax calculation and audit network system to achieve tax automation. A unified tax calculation and audit network system is established from the State Tax Administration to the provincial, municipal, and county levels across the country, and through computer networks and this system, strict surveillance of the tax authorities over the online transactions and e-commerce business conditions of enterprises is realized. The tax calculation and audit network system can reduce tax collection costs and workload, enhance the tax collection efficiency and supervision of tax authorities. And taxpayers can file taxes and pay taxes without leaving their homes through this system. At the same time, the tax bureau and banks have realized tax-bank networking, ensuring that tax payments are timely remitted to the state treasury.

　　Tax authorities should increase investment in tax collection and management research, improve monitoring conditions from hardware, software, and talent, enhance the level of hardware advancement and software intelligence, establish tax administration systems such as record-keeping, accounting, and deduction and collection on behalf of others, develop professional software such as automatic tax collection software, use high-tech technology to identify online transactions, audit the process of e-commerce activities, simplify tax registration, declaration, and tax payment procedures, and implement effective tax administration for e-commerce.

　　(Three) Establishing a tax monitoring center on the Internet

　　Tax authorities can establish a tax monitoring center on the Internet. Enterprises are required to provide relevant legal identity证明 and bank account information, tax registration certificates, and other materials, and connect with banks that provide online payment methods, certification institutions of both parties in transactions, and other departments. When the buyer’s enterprise logs into the seller’s enterprise homepage website, selects products, and conducts transactions through the seller’s homepage trading platform, it is required that each transaction be transmitted in real-time to the tax monitoring center. Through this center, feedback information is provided to the buyer to ensure the legitimate rights and interests of the buyer, while also enabling the seller (online transaction enterprise) to successfully complete the generation of electronic invoices, and to pay taxes with this paperless certificate. Tax authorities provide a unified computer invoice management system through the tax monitoring center on the Internet, connect the invoice system with the enterprise’s e-commerce trading platform, and obtain information such as the supplier’s procurement channels, quantities, and prices. In this way, tax authorities, in conjunction with logistics companies, warehouses, banks, and other links through the tax control devices of the trading platform, obtain the real online transaction data of taxpayers, and can monitor the taxable amount of online transactions, realize the sharing mechanism of online transaction data, and strengthen the tax collection management of online trading platforms.

　　(Four) improve the shared network transaction tax management platform between the tax collection and payment parties

　　Since corporate network transactions can be transmitted and automatically processed by computers worldwide in an instant, processes such as raw material procurement, product production, demand and sales, bank transfers, insurance, goods shipping, and tax declaration do not require human intervention and can be completed in the shortest possible time. Therefore, it requires that tax and financial management can achieve business collaboration, remote processing, online management, and centralized management models in terms of management methods.