Tax Planning. Corporate Investment Activities In Research

Tax planning means the process of tax-payers designing countermeasures to mitigate tax duties(reducing, exempting or postponing tax payment) by utilizing their due rights according to stipulations in tax boundary and the tax law about "allowed" versus "not allowed", "shall" versus "shall not". From the perspective of the Game Theory, the tax-collectors constituted by government entities and the tax-payers constituted by enterprises is a unity of two opposites.One the one hand, the government endeavors to maximize taxation by leveraging state authority. On the other hand, tax-payers would like to minimize tax payment for benefits of the enterprises. The purpose of tax planning is to reduce the tax-payers' tax payment reasonably and legitimately, and support them to avoid taxation risks.More and more Chinese enterprises are going to join into international competition after China entered into WTO. At the same time, following Chinese economic reform, the property right of Chinese enterprises will be clearly. At this situation, it is more important to the management of Chinese enterprise to cut tax-cost. And then, tax planning must be the best choice to them. The conclusion can be made that tax planning must have more development opportunity after China enter into WTO. It is significant to study theory and practice of tax planning.Tax planning belongs to financial management domain. Allowed by tax law, tax planning will get to the aim that is cutting tax-cost during the enterprise operation. The character of tax planning is validity, planning, intention and entirety.Considering to the character of tax planning, the author illustrates the methods of tax planning through the case that base on tax law.With the purpose of demonstration clearly, the logical construction is used in the thesis. The discourses about cases include five steps:...