Theoretical Research On Tax Planning Levels

This paper studies the three levels of tax planning and their applying in the reforming of Chinese tax system and the economic behavior of taxpayers, including avoiding extra tax burdens, optimizing tax plans and striving for favorable tax policies. The three levels of tax planning are closely related to the existence, development and reforming of tax system. So this paper starts with the comparison of tax planning and related tax cases.This paper first introduces a wide range of tax planning classification methods. Based on the generation and application of tax planning system, the author then puts forward three level modes of tax planning. Junior tax planning and tax evasion are two completely different trends that taxpayers do not obey tax laws. Junior tax planning is influenced by the behavior of taxpayers, the capability of colleting tax by authorities and tax environment. Based on elements of tax system, there are six strategies of secondary tax planning and also discussing the difference between it and tax avoidance. Because of unclear defining of theoretical and practical research, an economic behavior is whether tax avoidance or tax planning is decided by tax authority alone which brings tax planners a lot potential risks. Senior tax planning is put forward by the development of reforming of tax system, which is the result of negotiating by government and taxpayers. It is a compromising situation of interests for both sides, no matter on the level of taxes charged by government, reforms and individual special preferential policy for enterprise its own. At last, the author also points out the basic ideas and method for developing tax planning.The development of three levels of tax planning reflects the practical process of tax planning in our country. From the compliance with tax laws and regulations, tax-related planning to participation in the reform of the tax system, it's required that the society should establish a correct concept of tax planning and legislative bodies constantly perfect the taxation laws and regulations and work out an effective way to promote tax planning to create a well objective tax environment.