Tax Planning Theory And Practice Discussed

Taxplanning is that taxpayers use professional techniques to plan their production, operation, investment, finance, the structure of organization and the like, by themselves or under the help of taxation professionals, in order to enlarge their value. The premise of taxplanning is not to violate the laws and regulations in the taxpayers' country. Taxplanning is very popular in the foreign countries, especially in the western developed countries. But in China, it is still a fresh term and not accepted by many taxpayers. With the establishment of the system of socialism market economy and the entry into WTO, taxplanning will be developed dramatically as a tool of saving costs and enhancing productivity for taxpayers hi China.The paper is divided into five chapters:Chapter one mainly researches the concept of taxplanning. The author offers a definition for taxplanning, which is different from those given by the past researchers. The author thinks taxplannig is just one part of financial cost management. Its target is not only to reduce the taxpayers' taxation burden, but to make their value largest.Chapter two mainly researches the history and the present of taxplannig hi the foreign countries and hi China hi order to let people know that taxplanning has a bright future hi China.Chapter three mainly researches the possibilities and the necessities of planning taxation in China hi order to eliminate the suspicion about taxplannig.Chapter four mainly researches how to plan taxation hi order to direct taxpayers to practise taxplannig.Chapter five mainly analyze the typical cases of taxplanning.