| Whether economically or legally, tax avoidance is a complicated question without a uniform answer. With the development of economic globalization, the problem of international tax avoidance is getting tougher and tougher and countries are paying more and more attention to domestic legislation about anti-tax-avoidance and enhancing international cooperation. Under such situation, it is necessary to further discuss the issues on tax avoidance and anti-tax-avoidance. Only based on extensive study and real knowledge of the hypostatic character of tax avoidance, can taxation law be constantly perfected and tax collection and control level of our country be advanced. I. Tax Avoidance Tax avoidance, also known as avoidance of tax, generally refers to taxpayer achieving the goal of lightening or eliminating tax bearing, under the condition that tax law is not broken, by some financial arrangement and taxation planning, utilizing the weak points of taxation law or the method allow by the law. Tax saving, tax avoidance and tax dodge are different methods used by taxpayers with a view of non-payment or less-payment of tax. Viewed from nature and character, however, these three words are greatly different. They are respectively "Lawful", "non-lawbreaking" and "lawbreaking".The existence of tax avoidance is mainly caused by taxpayers' strong desire of pursuance of interest and imperfection of relevant laws. To be specific, the subjective reason for taxpayers to evade tax is interest. As driven by interest, most taxpayers desire and require avoidance of tax. The objective reason for tax avoidance is the weakness of laws related to taxation itself. No taxation law can be perfect. The defect and weakness of tax law makes it possible for taxpayers to realize their desire of tax avoidance through utilizing the defect. According to different terrain where tax avoidance is performed, tax avoidance can be classified into international tax avoidance and domestic tax avoidance. In our country, international tax avoidance is focused on enterprises invested by foreign businessmen. The main types of international tax avoidance of enterprises invested by foreign businessmen in our country are 1) to evade tax by utilizing international transfer price; 2) to evade tax by utilizing weakness of tax collection and control; 3) to evade tax by utilizing preferential tax policy; 4) to evade tax by utilizing electronic business; 5) to evade tax by misusing international taxation protocol; 6) to evade tax by capital attenuation; and 7) to evade tax through international tax heaven. Types of tax avoidance of domestic enterprises are 1) to evade tax by utilizing unsteady outlined characters in taxation system; 2) to use tax avoidance method of regional transference; 3) to use tax avoidance method of income transference; 4) to use tax avoidance method of income subtotaling; and 5) to evade tax by delay of taxpaying. Tax avoidance is both positive and negative. Therefore, the consequence of it should be discussed from all aspects and views. Though not violating tax law, tax avoidance causes the many positive effects as caused by conduct of tax dodge, which violates tax law. It is can be told by the following aspects. First, tax avoidance fails the governments' plan of financial income. Secondly, it damages impartiality of tax bearing and disturbs normal order of tax collection. Thirdly, it seriously interferes with micro-regulation function of taxation or even generates reverse regulation effect. Fourthly, it may also increase social cost and lower economic performance. Fifthly, in the case of international tax avoidance, it affects normal flow of international currency. While generating negative effects, anything inevitably has its positive function. Tax avoidance is no exception. While evading tax, taxpayers, by their own act, reflect the weak points and defects of tax law and contribute for perfection of tax law system. As for the government, to analyze and study the issue of tax avoidance and recognize the legali...
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