| Tax planning has been adopted by more and more corporations. Accounting information system provides valuable financial information for decision-makers. The function of accounting information makes it necessary to apply accounting in tax planning. The flexibility of accounting principle provides a chance for tax planning and makes accounting process a useful way to plan. Therefore, I chose "Accounting in tax planning" as the subject.I have researched into the definition of tax planning as well as the difference between tax planning and tax avoidance, tax planning and tax saving. Many countries in the world have regarded tax avoidance as an act in violation of the law and taken measures to avoid it, which made tax avoidance restricted by the lacuna of tax law. Tax saving has been considered as the observance of the law by a great quantity of countries. Consequently, I made a definition that tax planning is an act in adherence to the law, to take effective measures in management, investment and financing, intending to reduce the tax burden, increase the whole benefits, and gain the maximum of the corporation's value.Firstly, I researched the theory of tax planning, containing the definition, principle, function, and method, analyzed the relations between tax planning and tax law, as well as tax planning and accounting law, aiming at emphasizing the observance of the law. Secondly, I selected some representative accounting transactions from various angles, including the depreciation life and method and the inventory valuation from the view of expense planning, the timing and method of revenue recognition from the revenue angle, as well as salary planning and the paying way in incorporation from the other angles. Finally, I stressed that corporation should pay attention to the restriction and adjusting function of the tax law, the adherence to the whole benefits and development in the future, and that the lowest tax burden might not mean the best planning choice. |
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