A Study On The Governance Of Tax Avoidance Of The Enterprises In China

The dissertation tries to answer three questions, such as (i) what is the tax avoidance? (ii) whether the tax avoidance can be governed by regulations or not? and (iii) how to govern tax avoidance by regulations. Above three questions constitute the general composition of this paper in terms of their consecution. i.e. the research framework in form.It has six chapters as follows:Chapter 1 Introduction, explains the meaning of the subject, carrying on a domestic and international research overview and defines the tax avoidance concept, and answer what is the problem of tax avoidance.Chapter 2 Regulations of the Tax Avoidance, discusses the possibilities to regulate and control tax avoidance, affirms that tax avoidance belongs to the behavior of taxpayers who take use of the loopholes of the tax law and concludes that tax avoidance can be regulated and controlled by dynamic legislation and/or law interpretation channel. Chapter 2 answers the second question.Chapter 3 Current Circumstances in Tax Avoidance of the Enterprises in China, discusses the optimal approaches in evaluating the current circumstances, studying the actuality with tax avoidance of enterprises in China in the angle of general evaluation, the business scale of enterprises and the means of tax avoidance etc.Chapter 4 Analysis on the Motivation with Tax Avoidance of the Enterprises in China, scoops out essence through the phenomenon, explore the causes of formation in tax avoidance of enterprises in China, including the internal factors for tax avoidance and its mechanism formed, external factors and influence ways.Chapter 5 International Comparison of the Governance with Tax Avoidance of the Enterprises, carry through international comparison as to the governance of tax avoidance of the enterprises.Chapter 6 Proposals in the Governance with Tax Avoidance of the Enterprises in China, put forward some policies and proposals for the governance of tax avoidance, from several aspects as follows: strengthening the construction of social ideology in taxation, improving the tax legal systems and toll-collection system, reforming the enforcement mechanism of tax law etc.The dissertation puts forward three innovative opinions as follows: First, it explored the sources that generate the internal causes of enterprise tax avoidance, i.e. four mechanisms of "rational entrusting—agency mechanism" etc. through the hypothesis of "economic man" that originated in western main economic theory. It further discusses the specific structures of the four mechanisms and the regularity of them generating the internal causes of enterprise tax avoidance, drawing the outline of the "economic man" of the enterprise with tax avoidance. Simultaneously, it also further applies such concept into the tax authority, and describes the "economic man" of tax authority with anti-tax avoidance. The above research consists of the substantial framework of this dissertation.The policy proposals for the governance of tax avoidance and the discussions concerned with the promotion of tax avoidance are evolved under this framework which is the systematic research attempt in the domestic tax field.Second, it studies the problem of reorganization of the concept of tax evasion so as to meet the demand of the governance of tax avoidance. (i) From the angle of the reality, it analyzes the phenomenon of tax evasion "extensiveness" arising from the prevailing concept of tax evasion, and the impacts on the governance of tax avoidance due to such kind of "extensiveness"; (ii) From the gap of the tax law and the accounting law, it points out the deficiency of the prevailing concept of tax evasion in tax law. The paper puts forward the proposition of reorganizing the concept of tax evasion combining two aspects mentioned above; (iii) It puts forward a policy proposal of reorganizing tax evasion concept, and specifically discuss the impacts on the governing tax avoidance by reorganizing tax evasion concept, combining with the research on transfer -pricing tax system and so on.Third, the paper also discusses the relationships among constitution, tax general rules, tax law administrative explanation mechanism, asses mechanism in the government and tax authority, tax administration mechanism and tax avoidance promotion and its governance, from the aspects of formality and informality restriction of tax avoidance and tax law implementation. These studies also become an attempted exploration in the same field domestically.