The Study Of Tax-planning's Necessity And Feasibility Based On Economic Theory

In the market economy, tax planning is not only the interests of enterprises seeking to maximize income, but also the tool for government to control the macro-economy. Both of them start to realize the growing importance of tax planning, and try to reach in their targets in the tax-planning game. In this paper, we will analysis the theoretical foundation of tax planning in both enterprise's and government's point of view, in order to demonstrate its necessity and feasibility.In order to get a clear understanding of the theoretical foundation of tax-planning, we first studied the taxation system of China in this paper, and the definition, characteristics and goals of tax planning are discussed in detail.In need of proof, the paper work out the logical model of demonstrating necessity, which is the combination of both enterprises'and the government's objective. The objective of enterprises'is summarized as to get direct economic interests and to improve management ability, while the government's objective is achieving macro-control and improve the tax system. By the help of welfare economics model and game theory model, we demonstrate the necessity of tax planning.In the demonstration of feasibility, we find the path to proof, that is whether the condition to meet. By the help of micro economics model we demonstrate the feasibility of tax planning from both inside and outside conditions.At last, we analysis the differences between tax avoidence and tax planning, in order to make sure the demonstration above will not lead to confusion. We have also introduced anti-tax-avoidance strategy of the state.