Research On General Anti-avoidance Rules Of Individual Income Tax

With the development of economy and the close international exchanges,the sources and ways of income of individuals are increasingly diversified,the economic strength and the professional knowledge of tax law are constantly improving,and a variety of novel tax avoidance methods are emerging in an endless stream.Tax avoidance arrangements are very confusing.Due to the lag and limitation of the law itself,tax authorities will inevitably fall into a law enforcement dilemma in the face of new tax avoidance behaviors.In order to ensure the fairness of tax collection and the stability of national tax benefits,the newly revised Individual Income Tax Law in 2018 sets up a backstop clause in Article 8,paragraph 3.which establishes the general anti-avoidance rules of individual income tax with highly and vague expressions.At present,our country’s judicial practice do not find any judicial cases based on the general personal income tax anti tax avoidance rules.It can be seen that the applicability of general anti-avoidance rules is not strong,mainly because the general anti-avoidance rules are too principled provisions.In view of the special role of individual income tax general anti-avoidance rules in protecting individual property rights and national tax benefits,it is necessary to explore and study individual income tax general anti-avoidance rules.Individuals will avoid tax by confusing the types of income,preferential tax policies,tax havens and immigration,decomposition of income and other ways,resulting in a large loss of tax interests in our country.According to the principle of the consistency of rights and obligations,the principle of quantitative taxation and the legal basis of the unification of substantial taxation and tax statutory,the explicit legislation of the general anti-tax avoidance rules of individual income tax can not only effectively regulate the avoidance behavior of individual income tax,but also stabilize the order of income distribution.However,due to the empty meaning of "reasonable commercial purpose" and "improper tax benefits",the lack of economic substantive standards and burden of proof,the current regulations are easy to lead to the loss of taxpayers’ interests.Therefore,in order to balance the interests between the two,based on the experience of foreign countries,this article puts forward some suggestions to improve the general anti-tax rules of personal income tax.First of all,it should enrich the meaning of reasonable commercial purposes and improper tax benefits to eliminate the arbitrariness and uncertainty in the process of law enforcement.Secondly,we should give economic material standard independent legal status,and adhere to the dual standard combining subjective and objective.Only when the dual standard is met at the same time,can we identify the tax avoidance behavior.Finally,it is necessary to construct the proof system of general anti-avoidance of individual income tax,in which the tax authorities bear the proof responsibility for the economic essence,the taxpayers carry out self-proof for commercial purposes,and clarify the proof standards of each subject,in order to improve the applicability and operability of the general anti-avoidance rules.