Tax Planning Of Law Office

On the basis of summarizing the research achievements on tax planning and analyzing the characteristics of law office, the general theory of tax planning, the mainbody and environment of tax planning of law office(TPLO), the model and method of TPLO, the accounting system and management system basing on TPLO, as well as the design strategy of personal income tax for different type of lawyer, were systematically studied with demonstration analysis. This study aimed at constructing comparatively perfect theory and method system of TPLO according with the situation of China so as to provide a scientific instruction to the tax planning of law offices.Firstly, it was put forward that law, economics and management are the three basic theories for tax planning, and the traditional tax planning basing on only one of the three theories presents obvious unilateralism. A new tax planning theory system was constructed by integrating the basic theories of economics, management and laws.Secondly, the general rule and particularity of law office in manpower management, service process, income, finance and accountant, were revealed. According to the analysis of the function of law office, the aim of TPLO is not to pursue maximization of economics as common enterprises, but to pursue the creation of economical value at the same time of realization of its social value.Thirdly, a solid structure model of TPLO was constructed after analyzing the main factors affecting on TPLO and their relationships. TPLO should be confined within the boundary assured by tax law and relative regulations, and should take full advantages of the techniques of financial management, accountant system as well as the special management system of law office to realize the general target of value creation.Fourthly, an accountant system of law office basing on tax planning was brought forward, which deals with account setup and so on. The planning strategy of personal income tax for different type of lawyer was figured out, i.e., the personal income tax planning of employed lawyers should focus on their salary, and the way and form of their payment; and that of copartner lawyers should concentrate on tax planning of law offices.