Tax And Fee Planning Of The Road Transport Intdustry

Playing an important role in a company's financial management, nowadays, tax planning which directly impacts business final profits is increasingly recognized by business operators.As one important part of national integrated transportation system, freeway transportation becomes an infrastructure industry of national economy. It gains profit through business activities like other industries.Strengthening internal management and maximally controlling business operating cost turn into key methods to improve effectiveness and efficiency of a modern company. What's more, tax planning, underpayment of tax and fees are well known among business operators. In this thesis, the author tries to analyze and illustrate how tax planning is carried on by freeway transportation corporations.Freeway transportation corporations in this thesis primarily indicate companies which are engaged in freeway or highway transportation service, including passenger transport and freight. Through legal method, taxpayers arrange in advance their economic activities related to tax and fees in order to standardize business activities and reduce business cost. Based on the actualities and characteristics of freeway transportation industry, the author gives a brief introduction of the collected policies involved 13 tax types and 3 national fees. Similarly, he analyzes differences among the meaning of tax planning, tax avoidance and tax fraud from their conception and law execution limitation.Author's major arguments are as follows: analyzing the possibilities of tax and fee planning in freeway transportation industry combining with national actualities and its future; summarizing and listed the various methodologies of tax planning in this industry, such as: changing company's cooperative patterns through foreign investment to benefit tax holidays, reducing business taxable items by changing revenues from associated parties, adjusting internal accounting and adopting ideal tax rate; deferring corporation tax by accelerating vehicle and equipment depreciation; crediting corporation tax by purchasing local equipments; reducing individual tax by dividing individual revenue; avoiding risk by changing fees accounting and computation and saving fees by adjusting payment ways and making full use of policies.The author took a medium-sized transportation company as his example to illustrate the feasibility and effectiveness of tax and fee planning in freeway transportation companies under the framework of current laws and regulations. At last a conclusion is drawn.