Problems That Should Be Paid Attention To In Implementing Reasonable Tax Avoidance

"Reasonable tax avoidance" is also called "tax planning". It came from Britain's "commissioner of Taxation v. Winster Dagong" in 1935. Sir John Tom Lin, a member of the house of lords who participated in the case, made a statement about tax planning: "everyone has the right to arrange his own business.

If some of the arrangements under the law can be taxed less, we can not force him to pay more taxes. " This view has been recognized by the legal profession. After more than half a century of development, the standardized definition of tax planning has been gradually formed, that is, "within the scope of the law, the economic benefits of tax saving (TaxSavings) can be achieved as far as possible through the advance planning and arrangement of business, investment and financial activities." This definition shows that tax planning has the following three distinct characteristics:

　　 First, legitimacy.

Tax planning can only be carried out within the scope permitted by law, and violating the law and evading tax business is a tax evasion. The relationship of levy and payment is the basic relationship of Taxation, and the tax law is the common criterion for handling the relationship of levy and payment. It is beyond doubt that taxpayers should pay taxes according to law, and tax authorities should also levy taxes according to law. However, in reality, when enterprises abide by the law, there are often different tax plans that can be chosen with different tax burden. Enterprises can reduce tax burden and increase profits through decision making, and tax planning is possible.

　　 The two is planning.

Indicates prior planning, design, and arrangement. In the real economic life, the duty of tax is usually lagging behind: after the business transaction occurs, the turnover tax is only paid; after the income is realized or distributed, the income tax is paid; after the property is acquired, the property tax is paid, which objectively provides the possibility of making the first tax planning. In addition, business, investment and financial management activities are multifaceted. Tax regulations are targeted. Tax payers and tax payers are different, and tax treatment is often different. This shows that taxpayers can choose lower tax decisions. If business activities have occurred, the amount of tax payable has been determined, and then to seek less taxes, it is not tax planning, but tax evasion.

　　 The three is purposeful.

Expressing "to obtain" Tax saving " tax revenue Interests. There are two meanings: one is to choose a low tax burden. Low tax burden means low tax cost, which means high capital recovery rate. The other level is the time of tax delay (unlike tax arrears in violation of tax law). After the tax period is postponed, it may reduce the tax burden (such as avoiding high marginal tax rate), and perhaps reduce capital costs (such as reducing interest payments). No matter which one, the result is tax savings, that is to say, TaxSavings.

It can be seen from the origin and definition of tax planning. tax revenue Planning is not only an important way to maximize profits, but also a way to promote the management level of enterprises. It is also an important part of the decision-making of enterprise leaders. This is also the fundamental reason for the rapid development and popularization of tax planning activities in the western developed countries. In short, tax planning is the best combination of business behavior and government policy in operation. Successful tax planning can not only make operators bear the lightest tax burden, but also enable the government to give the policy meaning of tax laws and regulations to achieve. Therefore, in a sense, even if standing on the position of the government's macroeconomic regulation and control, such as industrial policy, tax planning activities should be encouraged, at least not prohibited.

　　 tax revenue Planning, as an important part of business activities, exists under certain objective conditions. The objective conditions at present include at least two factors: the level of tax administration according to law and the change of tax law.

First, tax administration is carried out according to law. tax revenue The premise of planning. Tax planning is based on the current tax system. If the actual tax operation in a certain area is not based on the existing tax law, but based on other factors of similar income indicators, then tax planning will lose its practical significance, because the prerequisite has disappeared, which is the primary issue that enterprises should pay attention to in tax planning.

Secondly, as a kind of law, tax law has stability and flexibility and variability. Therefore, tax planning should always pay attention to changes in the tax law. In the current stage of system transformation and the frequent adjustment of tax law, this point should be paid much attention to, because once the tax law is adjusted, the basis of tax planning may disappear or change, and the result of planning may be contrary to the original plan.

In other words, enterprise decision-makers and financial personnel should pay attention to the change and adjustment of tax law, and accordingly adjust accordingly. tax revenue Planning strategies and methods. The content of any tax law may be new in itself. tax revenue The key of the plan is how to make use of the tax planning means according to local conditions, so as to realize the profit growth of enterprises.

Editor: vivi