Legal Probe Into The Tax Avoidance And The Countering Of Tax Avoidance

Internal tax avoidance refers to the activities that the domestic taxpayers adopt legal or non-illegal measures to lighten or relieve possible tax burdens given the prerequisite of the existing tax diversity and loopholes in the tax law system. There have appeared varied new ways to avoid taxes resulting in some negative consequences on social and economic life such as the reduced national fiscal revenue, damaged equity principle of tax, unreasonable burdens on different taxpayers, etc., which obstruct the reform and opening-up course and the sound development of China's socialist economy. Nevertheless, the issues on the tax avoidance and the countering of tax avoidance in China have not attracted enough attention for long while the international tax avoidance and the countering of tax avoidance remaining hot for study. In this sense, more efforts to study the tax avoidance in China are of great importance for the improved economic order.This paper tries to make a probe into the relevant legal matters on the internal tax avoidance of the Chinese enterprises and the countering of tax avoidance and to put forward some considerations and proposals on China's anti-avoidance endeavor, which indicates the practical and theoretical significance of the study on this issue.Based on the above thinking, this paper, first of all, expounds the definition, nature and characters of tax avoidance and analyzes the definition, characters, motives, means and possible harm to domestic social and economic activities of the internal tax avoidance on that basis. Then this paper analyzes the status quo of internal tax avoidance in China and thoroughly analyzes the causes of internal tax avoidance by enterprises and major means to that end. Moreover, this paper analyzes the functions, importance, ways, etc. to counter tax avoidance and rethinks the status quo of countering tax avoidance in the country in an effort to expound the Chinese enterprises'internal tax avoidance and the countering of tax avoidance in a comprehensive and systematic way. Last, this paper points out the problems and shortcomings in China's anti-avoidance practice and proposes the thinking and measures for the improvement in this respect by taking into account the legal regime and practice of taxation in China.Western countries have developed well-rounded system of tax laws and comparatively mature theoretical system on tax avoidance and the countering of tax avoidance. While in China, the study on the tax law lags behind and the study on the tax avoidance and the countering of tax avoidance, especially on the internal tax avoidance are far from mature and perfect. This paper's author has long been working in this field and gained a lot of thoughts on the internal tax avoidance of enterprises. Therefore through the analysis of enterprises'internal tax avoidance and the countering of tax avoidance in China and by drawing on the experience of the countering measures for tax avoidance prevailing worldwide, this paper comes up with some forward-looking ideas and suggestions of practical significance on the tax avoidance countering in China.