Tax Analysis Of Gifts In Business Transaction

The meaning of gifts in business transaction is that gift happened in the course of business transaction.These issues have been controversial in the field of tax law.Nowadays,enterprises will take a series of marketing methods to attract consumers,such as “buy one get one free”,“random gifts”,“accumulate points” and so on.Based on these means,enterprises seize the market and gain huge profits.However,in different promotion ways,the revenue may be same,the tax would be totally different.In addition,different people have different views to same law and policies.Because of that,there will be many tax issues.How does the law of tax work in the problem of“buy one get one free”? Are there any shortcomings in the law of tax? How does the problems in the further substantive law and procedural law?The research about gifts is not much,and lack of systematic and comprehensive in practice.The thesis is writing based on the following framework: the thesis will be divided into four chapters.The first chapter analyzes the business transaction of gifts in theory,defines and classifies the gifts,and give expressions to the concepts.Then,analyzing the gifts in theory;The second chapter introduce similar cases in China and the USA,so that we can get the difference between China and American.And we will be get the points of Tax issues in China more easily.The third chapter is from theory to practice,and introduce experience from American.It is the best to find a way that is suitable to our China.The forth chapter are the feasible and practical suggestions of improving tax in Gift.The first chapter is about the business transaction of gifts in theory.First of all,classify the gifts,differentiates from the similarities and differences of each kind of gift.Then,explain what is the gift,get the point between gift and donation.Thattotally different.After,Analyze gift in four aspects: the principle of taxability,the principle of tax law,fair taxation,efficiency principle,etc.At last,we will get that tax in gift is reasonable.The second chapter takes similar cases as clue.First,“buy one and get one free”case in China.Then,American case.At first,background introduction of American sales tax.Then,explain the certain case about “21 cents”.Find the similarities and differences by comparing the cases.Finally,summary questions: undefined law and regulations in tax,severe tax administration,less relief taxpayer protection.The third chapter is about American experiences,including law in tax,including lawmaking,law enforcement,judiciary.Then,tax administration,early neutral evaluation,etc.These experiences for reference.It helps us to get the right way of building tax own.The forth chapter is about suggestion.According to the study,making some recommendations to improve tax in Gifts.First is about developing the tax law organization system.The two key points are the principle of law and fairness.And foster more professional tax law talents.Second is about the system of tax payer protections.