The Principle Of Substantive Taxation From The Perspective Of The Subject Of Tax Liability For Equity Holdin

In real life,there are many reasons for the generation of entrusted shareholding,which can be roughly divided into the following categories: 1.Adopting entrusted shareholding to avoid the restrictive provisions of the law,such as avoiding the restriction on the number of shareholders in the Company Law limit.2.To circumvent the restrictions on shareholder qualifications in laws and regulations and adopt equity holdings.For example,the Civil Servant Law prohibits serving civil servants from participating in business operations.3.To circumvent the restrictions on foreign investment in the law and adopt equity holding,such as the proportion of foreign investment in the enterprise and the scope of investment.4.Taking equity holdings out of consideration of personal privacy protection,such as individuals in order to prevent their financial and investment situation from being known to the outside world.The above four categories are the common reasons for the occurrence of entrusted equity holdings.Real life is complicated.The needs of individuals in society determine the necessity of the shareholding system.However,the existence of the shareholding system also makes the tax legal relationship more complicated and controversial.If you directly follow the superficial,Formal legal relationship for taxation,it is very likely that double taxation or double taxation will occur,which is contrary to the tax fairness principle of the tax law.In order to solve this problem,we need to break through the limitation of the form of tax legal relationship,and look at its economic nature.The realization of substantive justice in taxation is inseparable from the principle of substantive taxation.However,we must also note that the principle of substantive taxation is still a new thing in our country,and the theoretical research on it is not mature enough.At the same time,in judicial practice,loopholes in the rules are also easily used as a tax avoidance channel.Therefore,the application of the principle of substantive taxation in the field of entrusted equity holding will be a long running‐in process.At present,there are not many theoretical studies on substantive taxation in my country compared with other disciplines,and there are few theoretical studies on the application of substantive taxation principles to the field of entrusted equity holding.Mr.Xie Huaizhi was the first scholar in my country to introduce the principle of substantive taxation,and the introduction of this theory has attracted great attention from the theoretical and practical circles.The current principle of substantive taxation has been reflected in my country’s tax legislation such as the "Individual Income Tax Law",but it is relatively conservative,mainly in the form of general provisions to guide the interpretation of the tax law.In the practice of entrusted shareholding,many tax authorities even directly cite the basis for judgment when determining the subject of tax liability,which shows the necessity of the principle of substantive taxation to promote the rule of law in my country’s taxation.The reason why this article believes that the principle of substantive taxation should be applied in the entrusted equity holding is to better protect the legitimate rights and interests of the parties to the entrusted holding,avoid the abuse of taxation power,and maintain the dignity of the tax law.From the judicial practice in our country,it can be clearly felt that the tax authorities are in a very strong position,while the taxpayers are relatively weak.At the same time,the judicial authorities often adopt the interpretation of the tax authorities when characterization of tax dispute cases,so it is very necessary to correctly apply the normative analysis of the entrusted equity holding in the entrusted holding.Compared with the formal taxation principle,the substantive taxation principle can overcome the drawbacks of formal justice and truly maintain the fairness and justice of taxation.In addition,the principle of substantive taxation attaches importance to the substance of the transaction,which can effectively curb anti‐tax avoidance and help maintain the realization of fairness and justice in the field of taxation.Therefore,the purpose of this paper to discuss the application of substantive taxation principles and solutions from the perspective of the subject of tax obligations in the field of entrusted equity holdings is to demonstrate: 1.In the field of entrusted equity holdings,the application of substantive taxation principles rather than formal taxation principles Rationality;2.The legitimacy of applying the principle of substantive taxation in the field of entrusted equity holding compared to the principle of formal taxation;3.In terms of law enforcement,the feasibility of taxation by tax authorities in the field of entrusted equity holding through the principle of substantive taxation;4.At the theoretical level,the path to perfecting the substantive taxation principles in the field of entrusted equity holding.