Tax Avoidance And Discussion On The Real Principles Of Taxation

During legal practice and daily reading, author discovered that with further development of Chinese economy, tax avoidance became more common. Actually, such kind behavior brought unhealthy influence to a nation's revenue, and made fiscal function handicapped. At the same time, tax avoidance hurt those tax payers who pay tax in good faith, and in this way impaired the justice embodied in tax law, therefore, the value tax law pursued and the substantial justice the tax law adjusted, will fail in vain. By now, most legislations including China, held ambiguous attitudes towards tax avoidance, so their traditional tax law and regulations are in lack of general regulation article; at the same time, because the complexity of tax avoidance, the existing regulation mode had little effects. As a result, it is necessary to make adjustment on the legislation, before this, we need to do legal research on tax avoidance and values of different legislations on such behavior, which are values in theory and practice. Firstly, this paper will conclude the definition of tax avoidance based upon the analysis of different definitions in different countries. Secondly, it will analyze and generalize the legal attributes of tax avoidance, then analyze the reasons and damages of tax shelters. As far as such behaviors are concerned, due to the ambiguous attitude towards tax avoidance both in legislation and practice, this paper tries to introduce and analyze judgments from countries of different law families. After that,it will conclude that we should hold negative attitude towards tax avoidance in accordance with the international trends. Because the existing laws and regulations are unable to regulate tax avoidance effectively, so we have to introduce new supervision, that is to say , we must establish the substance over form principle in tax law, and apply it into the practice in the curb of such activity. Next this paper will analyze the definition and history of this principle, then probe its origin. Also this paper will discuss how it conflict and harmonize with "no law no tax"principle. In the end this paper come to practice , discussing how to apply this useful in to the practice of tax avoidance regulation in China. Tax law is a piece of virgin land which need to be explored, moreover, there is few papers researching on the combination of tax avoidance and "substance over form". Therefore, this paper was a novelty. Instead of law perspective, previous literatures always researched in view of taxation, so this paper is a breakthrough to some extent. Firstly, this paper has a new perspective of tax law. Secondly, it challenge the opinion that the conflict between "no law no tax"and "substance over form"can not be settled, and put forward the feasibility and necessity to apply "substance over form"in tax shelter supervision. It tries to design a supervision mode with the combination of general regulation and particular which is the innovation of opinion.