International Experience With The Tax Authorities Of Tax Planning Strategic Choice

Tax-planning is becoming a normal business practice in recent years in China. Indeed, it has become a part of financial management for taxpayers. The objective of tax planning is to minimize or defer income taxes payable, but tax planning also plays key roles in adjusting economic efficiency, maintaining the legitimate rights and interests of tax payers, as well as optimizing industrial structure. This thesis begins with analyzing the origin and development of tax planning which include a brief introduction of experience and revelation in foreign countries, then examines challenges and opportunities China faces in tax planning practice.The thesis includes five parts.Part One briefly reviews the history and development of tax-planning, and concludes with tax-plannning conceptions.Part Two analyses related taxpayers with regard to tax-planning and methodology in foreign countries through data analysis and theoretical research.Part Three examines how tax planning works in China and investigates the necessity and feasibility of tax planning development in China.Part Four discusses current issues surrounding tax planning practice in China, which include issues involved both taxpayers and internal revenue service administrations.Part Five explores various strategies towards efficient tax planning for the administration while keeping taxpayers stay on the top of tax obligations. The State Administration of Taxation should be responsible for implement of tax-related legislations, strengthening tax-planning supervision by State auditing regime, establishing tax-collection rules, promoting standardization of tax-collection, and affirming and supporting tax-payers for their tax-paying. Government should enhance management of tax-payers and tax-collection institutions, and bringing as soon as possible enterprise tax-paying into a legal system. As income tax rules are often complex and ever developing, tax planning should be an ongoing process. Administration should be able to adapt to the changes through efficient management and control.