Tax Planning In The Use Of Modern Corporate Financial Management

Tax-planning is a new research field in our country, which has been known, focused and practiced in recent years. How to comprehend it correctly and apply it in practice properly is a topic that is important in research and urgent to be solved at present.Tax-planning is a planning and arrangement which taxpayers make to minimize their tax cost and thus maximize the corporate or shareholders' wealthy by taking advantage of the tax preferential policy in accordance with the taxation laws. Tax-planning is a legal, decisive, planned and value-creative activity. A correct concept of tax-planning should be hold. Tax-planning is legal and encouraged by government, not equal to tax dodging or tax evasion and also different from tax-avoiding. The low tax burden plan is not necessarily a best choice. The best criteria of decision-making is to measure whether the plan maximize the corporate or shareholders' wealthy. Tax-planning is a field of a wide range and has abundant content of many aspects. This thesis, from the financial management point, just dealt with the methods of tax-planning employed when a corporate sets up, operates, computes its revenue and cost, makes its financing and investment decisions and dividend policy, makes its mergers and acquisition and trades in the international market. Finally, the thesis pointed out several questions that should be paid attention to when tax-planning. The tax laws and policies should be studied carefully. The benefits and costs from tax-planning should be considered at the same time and be well-balanced. The risk of tax-planning should not be neglected. The benefits of tax-planning are limited and its effect should not be exaggerated.