How to reasonably avoid tax
, "reasonable tax avoidance" in the implementation of what to pay attention to? "Reasonable tax avoidance" is also known as "tax planning". It originated from the case of "Commissioner of Inland Revenue v. Archduke of Winster" in 1935. Sir Tomlin, a member of the House of Lords who was involved in the case at that time, expressed his views on tax planning as follows: "Any person has the right to arrange his own business. He cannot be compelled to pay more tax if he can pay less tax by some arrangement made under the law." This view is shared by the legal profession. After more than half a century of development, the standardized definition of tax planning has been gradually formed, that is, "in the scope permitted by the law, through the prior planning and arrangement of business, investment, financial activities, as far as possible to achieve the economic benefits of tax savings (Tax Savings)." This definition shows that tax planning has the following three obvious characteristics: First, the legality indicates that tax planning can only be carried out within the scope permitted by law, and it is a tax evasion behavior to violate the law and avoid tax business. The relationship between taxpayers and taxpayers is the basic relationship of taxation, and the tax law is the *** same criterion to deal with the relationship between taxpayers and taxpayers. Taxpayers should pay tax according to the law, and tax authorities should collect tax according to the law, which is unquestionable. However, in reality, enterprises in compliance with the law, there are often a variety of tax burdens varying tax program can choose, enterprises can choose to reduce the tax burden through decision-making, increase profits, tax planning becomes possible. Secondly, planning indicates prior planning, design and arrangement. In real economic life, the tax obligation usually has a lag: the enterprise transaction behavior occurs, before paying the turnover tax; after the realization or distribution of income, before paying income tax; after the acquisition of property, before the payment of property tax, which objectively provides the possibility of prior planning before tax payment. In addition, business, investment and financial management activities are multifaceted, while tax provisions are targeted, and tax treatment is often different for different taxpayers and taxable objects, which suggests to taxpayers that they can choose a lower tax burden decision. If business activities have occurred, the taxable amount has been determined and then go to plot to pay less tax, it is not tax planning, but tax evasion. Thirdly, the purpose is to obtain the tax benefit of "tax saving". This has two meanings: one meaning is to choose a low tax burden. Low tax burden means low tax cost, means high capital recovery rate; another layer of meaning is to delay the tax time (as opposed to the violation of tax law provisions of the tax delinquency behavior). The postponement of the tax period may reduce the tax burden (e.g., avoiding a high marginal tax rate), or it may reduce the cost of capital (e.g., reducing interest payments); either way, the result is a saving in tax payments, i.e., tax savings (Tax Savings). From the origin and definition of tax planning can be seen, tax planning is not only an important way to maximize corporate profits, but also a way to promote the level of business management, but also an important part of the decision-making of business leaders, which is precisely the fundamental reason for the rapid development and popularization of tax planning activities in the developed countries of the West. In short, tax planning is to seek the best combination of enterprise behavior and government policy intention in the operation, successful tax planning often can make the operator bear the lightest tax burden, but also can make the government to give the policy intention of the tax laws and regulations can be realized. Therefore, in a sense, even from the standpoint of the government's macro-control (such as industrial policy, etc.), tax planning activities should be encouraged, or at least not prohibited. Tax planning as an important element of enterprise business activities, is in a certain objective conditions exist. Such objective conditions seem to include at least two types of factors, namely, the government's level of ruling taxes in accordance with the law and changes in tax laws. First of all, tax administration in accordance with the law is the prerequisite for tax planning. Tax planning is based on the current tax system, if the actual tax operation in a certain area is not based on the current tax law, but on other factors similar to income indicators, then tax planning loses its practical significance, because the preconditions have disappeared, which is the primary problem that enterprises should pay attention to tax planning. Secondly, since the tax law as a kind of law has stability as well as certain flexibility and change, so tax planning should always pay attention to the changes of the tax law. In the system of transition has not been completed, the tax law is adjusted more frequently at this stage, this point should be particularly important, because the tax law once adjusted, the basis of tax planning may disappear or change, the results of planning may be completely opposite to the original planning expectations. In other words, the decision-makers and financial personnel of enterprises should pay attention to the changes and adjustments of the tax law and adjust the strategies and methods of tax planning accordingly. Any adjustment of the tax law, the content itself may be the basis of the new tax planning, but the key lies in the decision makers how to adapt to the local use of tax planning tools to achieve corporate profit growth.