The Research On The Choice Of Enterprise Accounting Policies Guided By Tax Planning

Tax planning is a method and means adopted by the tax payer to plan and arrange business management, investment and financing management of the enterprise beforehand as to save tax payout as much as possible under the premise that the tax payer performs the legal obligation. There are many ways to conduct tax planning, accounting policy choice is one of them. Tax planning through the choice of accounting policies does not affect normal production and business operational activities of the enterprise, and the economic and technical conditions outside and inside the enterprise restrict least to it. So that the cost of tax planning through the choice of accounting policies is the lowest among all tax planning methods. Therefore it is most feasible. So, the tax planning whether would become the motivation of the accounting policy choice, what check and supervision will the accounting policy choice carry on under this motivation be subjected to, and what kind of economic consequences will it lead to? This paper is set to answer these questions.Principal views of the dissertation are as follows:Accounting policy refers to the concrete principles, methods and programs adopted by the enterprise to account and make accounting statement. There are broad sense accounting policy and narrow sense accounting policy, macro accounting policy and micro accounting policy as well. Usually an enterprise has many accepted accounting principles, methods and programs for the various businesses. The enterprise should choose the accounting principle, method and program that can reflect its own corporation' s financial status and management outcome appropriately according to its own concrete situation, under the guidance of accounting legislation. This process is called as the choice of accounting policies. An accounting choice is any decision whose primary purpose is to influence (either in form or substance) the output of the accounting system in a particular way , including not only financial statements prepared in accordance with GAAP, but also tax returns and regulatory filings.Tax planning is one of the motivations of accounting policy choice. The contractual theory generally includes executive compensation agreements, debt covenants and political cost. Accounting choice is determined to influence one or more of the firm' s contractual arrangement. In research of political cost, accounting policy choice is determined to influence external parties, such as tax organization,government regulators. By influencing the story told by the accounting numbers , managers hope to influence the decisions of these third parties . The most usual hypothesis is that the consideration of the accounting policy choice of a business can reduce or delay the tax-paying , escape the potential regulation and lower the political cost finally . So the tax planning is one of the motivations of accounting policy choice.The objective inevitability of the choice of accounting policies guided by tax planning results from three aspects: (1) The tax payer has the right to conduct tax planning through the choice of accounting policies. (2) Tax planning can reduce the indetermination risk that the taxpayer would have taken before. (3) The position of the choice of accounting policies in the corporation management structure leads to the inevitability.The choice of accounting policies guided by tax planning is under the influence of various factors. The first is every interest group. According to the economic game theory, the enterprise that acts as the producer and provider of the accounting information, the government, owners, loaners, suppliers, customers and employees constitute one party and multipartite of the game. Therefore, the choice of accounting policies guided by tax planning is under the influence of the form of business organization. In addition, it is still under the influence of many other factors, such as law and policy, accountant occupation ability to make judgments, and social cultural, etc.What' s the economic consequences that the choice of accounting policies guided by tax planning lead to? This paper discussed the influence upon the accounting information users and the macro economy that is made by the choice of accounting policies guided by tax planning.