Legal Analysis, Tax Planning

It is mainly discussed in three parts in the paper.PartⅠ:legal definition of tax planning.First,from the start with the concept of tax planning,the part compares with other related concepts i.e. tax saving,tax avoidance,tax evasion to redefine their relationship,and focuses on legality and right of the two aspects of tax planning legal attributes were analyzed.At present,many researchers focus on results, ignoring potential legal risks in the process of tax planning which leads to either narrower or broader orientation upon the objective of tax planning, and thus may result in greater potential legal risks without exact knowledge of tax planning.Therefore,the author will further define tax planning through analyzing the objectives and risks of tax planning.PartⅡ:legal analysis of tax planning methods.On the basis of the clear legal definition of tax planning in part one,part two will analyze the problems in a case.First of all,tax planning project in company S will be referred and the material methods in the tax planning project will be discussed.Next is further legal analysis upon three basic methods of tax planning which is tax saving planning,tax avoidance planning,tax shift planning in the case of Company S.Finally,supplementary notice which should be paid attention to in the process of tax planning will be given on the basis of the illustration and analysis of the case.PartⅢ:legal regulation of tax planning in China.Part three is the key to the paper.From the angle of jurisprudence,though the behavior of tax planning is reasonable and legitimate,there are many problems in it owing to different reasons in the legal practice in China.If these problems are not resolved,it will seriously hamper the development of tax planning in our country.The method of discussion in this part is to trace back and explore the causes.At first,this part discusses the legal problems in the practice of tax planning from the aspects of legislation,law enforcement, judicial,tax agency.Secondly,the author will give advice on how to improve legal regulation of tax planning after analyzing these problems. It includes four aspects:the first one is to improve tax law with the aim of providing system safeguard for tax planning.The second one is strengthening levy and management,administrating according to law and creating balanced environment of taxation regulation.The third is setting up taxation judgment organs and regulating taxation relief.The fourth is determining tax planning range and regulating taxation agency.