Case Analyses On Financial Leasing Turnover Tax Related Legal Issues

Looking over the recent capital, commodity and monetary market though theglobe, financial leasing is playing a key role. In general, financial leasing is a newfinancial industry including equipment leasing, financing, trading and technologyinnovation. In consideration of the nature of financial leasing, this form of transactioncarries complicated legal relation under tax laws. The practice on financial leasinggrows rapidly though it has a late start in China. At the beginning of80’s last century,former National Vice-President Yong Yiren initiated and introduced financing leasingfrom Japan and established the joint venture which began the financial leasingpractice in China. On1st January2009, the new revision of Provisional Regulationsof the People’s Republic of China on Value-Added Tax came to effect. In2012, Chinacarried out the tax reform called Business Tax Change to VAT or VAT Expansion. Allthat changes bring conflicts that must be solved through further case law research.The legal system of turnover tax in foreign countries tend to be complete whileChinese legislations focus more on accountant processes rather than tax legal system.Based on this, empirical analysis method and comparative method studies areused to discuss the questions of financial leasing turnover tax in typical cases in thethesis. The thesis also gives advises on legal issues under the background of taxreform in China.Part One of the thesis analyses the transaction structure if financial leasing and clarifies the legal relation between parties, thus researches and discusses the financialleasing relevant law system. Part Two analyses the tax payment after the reform,therefore concludes that financial leasing could be restricted by some extend becausethe leasee are usually reluctant to pay the high tax after the reform. Part Threeanalyses the typical financial leasing case after the reform which has minimized thenegative effects of the reform. Part Four gives advises on the basis of the former partsas well as foreign references on tax system to improve the development of financialleasing in China.The thesis innovates in two respects: a) New angle, deep research. Focuses on thenew tax reform and new phenomena, finds the deep problems in VAT reform. b)Comprehensive analyses, practical advice. The thesis also gives practical advices onthe reform of tax law system, analyses comprehensively on turnover financial leasingin order to improve the flourish of financial leasing.