An Analysis On Regulation Of Tax Avoidance Through Corporate Personality

Tax avoidance through the corporate personality, like other kinds of tax avoidance, is characterized with legitimate form and illegitimate nature. The improper behavior not only results in the reducing of the state finance, as well as the lowering of the efficiency of the tax collection and management, but also destroys the principle of the equality and substantial justice of the tax law, for the difference of the tax burden between the abusive and legal taxpayers. Moreover, tax avoidance through the corporate personality influences the realization of the values of the corporate personality system, the long-term development of the company, and the operation of the market economy. Therefore the regulation of the tax avoidance through the corporate personality is necessary.The article closely focuses on the topics of the behavior of tax avoidance through the corporate personality, the relationship between the regulation of the tax avoidance through the corporate personality and the system of the disregard of corporate personality, and the methods of establishing and applying the system of the disregard of corporate personality in the tax law.Firstly, based on the analysis of the concept, legal natures, the elements of the universal tax avoidance, and the characteristics of the tax avoidance through the corporate personality by the company and its shareholders, the author mainly discusses the causes, the occasions, and the social influences of the tax avoidance through the corporate personality. It refers to a de-law behavior of the company or its shareholders, taking advantages of leaks of legislation and their rights to set up, alter, or terminate a company freely, to reach the same economic effects and abating or removing taxation through abnormal conduct unwritten in the tax law.Secondly, on the researches of the regulations of the common tax avoidance and the tax avoidance through the corporate personality home and abroad, the author points out the limitations of the regulation in China. Furthermore, by introducing the experience abroad, the author demonstrates the necessity and feasibility of establishing and applying the system of the disregard of corporate personality on regulating this kind of tax avoidance in our country.