A Study On The UK Generalanti-avoidance Rules

Around the 21 st century,there were heated discussions and studies in the UK academic community on whether and how the general anti-avoidance rules should be established,followed by the formal enactment of the general anti-avoidance rules in the Finance Act 2013,which provided strong legal protection for the UK government’s anti-avoidance activities.This thesis will briefly introduce the legislative background and main contents of this provision.The legislation of China’s general anti-avoidance rule started from the introduction of the Enterprise Income Tax Law of the People’s Republic of China in 2008.Article 47 of the Enterprise Income Tax Law stipulates that if an enterprise implements other arrangements that do not have a reasonable commercial purpose and reduces its taxable income or income,the taxation authority has the right to adjust it in accordance with reasonable methods.However,there are still many problems with the general anti-avoidance rules in China’s practice,such as the criteria for determining anti-avoidance are still unclear and the enforcement procedures for anti-avoidance are not yet standardized.The UK’s "general anti-avoidance rules" system has a high degree of flexibility and fairness.It takes into account the specific situation and transaction substance of each case under the constraints of clear guidelines,and strikes a good balance between preventing abusive tax arrangements and allowing legitimate commercial arrangements.The research objective of this thesis is to explore how the problem of anti-avoidance determination,the problem of anti-avoidance enforcement procedure and the problem of limiting the discretionary power of the taxation department can be solved in the implementation of the UK general anti-avoidance rules by introducing the UK general anti-avoidance rules and applying the methods of literature research and comparative analysis,and finally,on the basis of analyzing the current situation of anti-avoidance in China,combining the advantages of the UK general anti-avoidance rules Finally,on the basis of analyzing the current situation of anti-avoidance in China,and taking into account the advantages of the UK general anti-avoidance rules,the essay puts forward suggestions for improving the general anti-avoidance rules in China.This essay is divided into five chapters.The first chapter is divided into three subsections,which mainly focuses on the background of the UK general anti-avoidance rules.The first section introduces the jurisprudential basis of the anti-avoidance rules,including the theory of legal incompleteness,the principle of tax statute and tax fairness,the principle of substantive taxation and quantitative taxation;the second section introduces the judicial practice of the UK general anti-avoidance rules;the third section reviews the legislative improvement of the general anti-avoidance rules from the establishment of the legislative research group.The third section reviews the legislative improvement of the general anti-avoidance rules from the establishment of the Legislative Research Group.Chapter 2 is divided into three sections,which mainly introduces the determination of tax avoidance in the legislation of general anti-avoidance rules.The first section clarifies the boundary of tax avoidance,tax planning and tax evasion;the second section analyzes the rules and problems of tax avoidance determination before the introduction of the general anti-avoidance rules;the third section mainly introduces the double reasonableness test established in the guidelines of the general anti-avoidance rules.Chapter 3 is divided into two sections,which mainly analyzes the procedural issues in the enforcement of the general anti-avoidance rules.The first section is the prerequisites for the activation of the general anti-avoidance rules,and the second section is the prevention and supervision of the enforcement of the general anti-avoidance rules,including the pre-determination system and the advisory committee system.Chapter 4 is divided into three sections,which mainly analyzes the issue of discretionary power of the taxation department in the general anti-avoidance rules.The first section outlines the three manifestations of discretionary power of tax authorities,while the second and third chapters elaborate the constitutional principles and the limitations of judicial review on discretionary power.Chapter 5 is divided into two sections,focuses on the inspiration of the UK general anti-avoidance rules to China.The first section mainly analyzes the current situation of tax avoidance in China and the problems of the existing general anti-avoidance rules in China;the second section puts forward specific suggestions for the improvement of the general anti-avoidance rules in China on the basis of the British operation and the national conditions in China.From two different perspectives of individuals and the state,the tax law mainly addresses two aspects: firstly,it requires taxpayers to pay taxes according to the law,and the state determines tax types,tax rates and tax collection procedures through the tax law in order to safeguard the state’s tax interests;secondly,it restricts excessive intervention in taxpayers’ property rights and requires tax authorities to disclose their tax policies to the public to ensure the normal operation of the market economy.Therefore,a balance needs to be found between the need to safeguard national tax interests and the need to protect the legitimate rights and interests of natural taxpayers.Therefore,the study of the UK general anti-avoidance rules has important theoretical and practical significance to the improvement of China’s tax legal system.