Application Of Tax Planning In Financial Management Of Enterprises

The idea of Tax Planning was firstly proposed by Tom Lin from UK in 1930 s, and has enjoyed specialized development in western countries since 1950 s. Development of socialist market economy and global economic integration has urged domestic enterprises to boost their competitiveness by emphasizing tax planning.Modern enterprise should have a value management system, which is financial management system. Financial activities are always linked to tax policy of the government. Therefore, tax planning has been demonstrating its necessity and importance in minimizing tax risk and cutting operation cost across an enterprise.From taxpayer’s point of view, the paper firstly brief introduces basic theory of tax planning; then carries out analysis on the relationship between tax planning space and financial management, followed by analysis on the relationship between tax planning and the target, function, content and environment of financial management; and finally proves theoretical value of tax planning in financial management of enterprises.Taking Kwei Chow Moutai Distillery Group Changli Winery Co., Ltd.(hereinafter "Moutai Winery Group") as the example, the paper conducts analysis on current operational, financial and taxation status of the company, and finds the problems the company is facing in taxation management. On this basis, a brief interpretation of tax planning space of major taxes involved is made and illustrational statement of its application in the company’s financing, investment, operation and allocation is provided in a bid to resolve existing tax-related problem.With improvement of domestic laws and regulations and enhanced awareness of tax planning, tax planning will become a sun-rise industry to serve the enterprises and also the society.