The Application Of The Principle Of Regulating Tax With Substance In Anti-Tax Avoidance

Along with the rapid development of China's economy, the expansion and renovation of business activities, tax avoiditon has become a problem which should not be neglected. This issue not only causes the country's financial loss, but also has serious affection on the economic and legal construction, destroying the fairness of the tax system. The Principle of Regulating Tax with Substance is a controversial principle in tax law. Using this principle on tax avoidance management is a classical area of tax practice. By emphasizing on the substantial fact of tax cases not form, the real intention covered by taxpayers' legitimate behaviors will be brought to light and fairness and justice of tax law will be safeguarded. The introduction of the principle of Regulating Tax with Substance in Anti-Tax Avoidance legally and reasonably is academic common consensus, but there are many problems in the process of practice. After years of tax system reform and practice, it still needs more theoretical research and hard work and improvement.Searching on the theory and practice problems in the application of the principle of regulating tax with Substance in anti-tax avoidance is urgent and important tasks. Based on the research achievement of scholars both at home and abroad, In this thesis, I probe into this issue mainly using methods of comparative analysis, historical analysis, empirical Analysis and so on. Through the discussion on the theory and practice problems in the application of the principle of regulating tax with Substance in anti-tax avoidance and combining western nations' legislation, enforcement and judicial experience in anti-tax avoidance and the condition of our country, this thesis attempt to put forward some improving Suggestions based on the theory of principle of regulating tax with Substance.This thesis is divided into three chapters. Chapter-1 is about the introduction of principle of regulating tax with Substance and management on tax avoidance. In the first section, in the term of meaning, effect and value, the principle of regulating tax with Substance is introduced. The legal character and economic and juristic influence is analyzed in the second section. In the third section, the problems in the application of the principle of regulating tax with Substance in anti-tax avoidance are analyzed, including theoretical side and practical side.Chapter-2 is about observation and study on various countries' application of the principle of regulating tax with Substance in anti-tax avoidance. In the first section, the United States, Japan, Germany and Britain's condition are introduced and compared. In the second section, through inducing anti-tax avoidance legislation and analysis on current application of the principle of regulating tax with Substance in china, this thesis find existing problems in legislation, enforcement and the judicial process.Chapter-3 is about the perfection of application of the principle of regulating tax with Substance in anti-tax avoidance in China. Aiming at the problems analyzed above, some suggestions are put forward in detail. In the first section, issues should be paid attention to in the legislative process are proposed. In the second section, regarding documents issued in recent years as a frame, some solutions in law enforcement process are suggested, including perfection of hearing of witnesses, averment excuse and burden of proof. In the third section, the introduction of substance over form doctrine, step transaction doctrine and Business Purpose Doctrine are proposed, so to catch up with the development of international anti-tax avoidance system.