How To Divide Tax Evasion And Illegal Tax Avoidance?

As an important activity in the daily operation of enterprises, tax planning can enable enterprises to enjoy certain preferential tax policies through reasonable tax planning, such as the identification of high-tech enterprises, the tax exemption of value-added tax from cross border taxable services, the tax refund of enterprise income tax, and so on. Through the solution of policies and reasonable applications, enterprises can ultimately reduce the tax burden of enterprises. However, there are always some enterprises that will go awry, implement tax reduction and tax avoidance in a way that reduces the tax burden. This behavior often does not conform to the general business principles. If people exclude tax factors, people with normal rationality will think that the taxpayers' behavior is abnormal. If the taxpayer arranges his behavior according to the normal market trading rules and laws, even if the tax burden is reduced, it will not be tax evasion or illegal tax avoidance.

Whether tax evasion or illegal tax avoidance should result in the reduction of tax burden, that is, the actual tax paid is less than the tax that should be paid before the relevant arrangements were made. If this result is not achieved, it will not constitute tax evasion and illegal tax avoidance. Theoretically, it can be regarded as an unsuccessful act of tax evasion and illegal tax avoidance, but there is no such concept in the relevant tax law and actual law enforcement. The distinction between tax evasion and illegal tax avoidance includes the following three aspects.

　　 I. implementation legitimate Different sex

The act to achieve tax dodging must be the three Act expressly prohibited by the tax law. Any act other than that, whether legal or illegal, can not constitute tax evasion. The act to achieve the purpose of illegal tax avoidance must be prohibited by illegal law. The "law" here is not limited to the tax law, including all the laws. To put it simply, the purpose of tax evasion is a specific offence, and to achieve the purpose of illegal tax avoidance is not specific illegal activities (including legal acts, but not limited to legal acts).

Two. The time of implementation is different.

In order to achieve the purpose of tax evasion, the action must be carried out. Tax duty After implementation, the act to achieve the purpose of illegal tax avoidance must be implemented before the tax obligation arises. It is possible to lighten the tax burden through the act of not breaking the law before the tax obligation is generated. However, after the tax payment is generated, it is impossible to reduce the tax burden through illegal acts except legal tax deduction and exemption.

Three. Different legal responsibilities.

It is precisely because of the above differences between tax evasion and illegal tax avoidance. Harmfulness There are also great differences. Tax evasion is highly harmful and the evasion of illegal tax avoidance is relatively small. In addition to recovering taxes, tax dodging should also be fined, and penalties should also be imposed (usually fines). If the circumstances are serious enough to constitute a crime, criminal liability should also be investigated. As for illegal tax avoidance, generally only adjust the amount of tax payable, do not add late fees, and can not be punished, nor can it be held criminally responsible. Because taxpayers' behavior is not illegal, punishing taxpayers who do not violate the law violates the basic principles of "legally prescribed punishment for a specified crime" and "statutory punishment".

With the continuous improvement of China's tax law, enterprises can no longer realize illegal means, and will cause great losses to enterprises. Enterprises can achieve the purpose of tax planning through professional staff or third party service providers.

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