Analysis On The Planning Of Tax In Accounting Policy Choice

Tax planning carried out quite common in Western countries; it can make considerable benefits for companies. Tax Planning started in the 90s of last century in China, its development still stays in the early stages, the theory about tax planning is not perfect, and means of tax planning remains to be to explored further, many enterprises have not established the concept of tax planning. Tax planning is a planning tool through accounting policy choices, This study can guide the enterprise's tax practically, and explain the rationality of planning through the accounting policy choice.Due to the complexity of the economic environment, it is impossible for the government to lay down every details of Accounting policies, so the companies obtained a chance to select. By the same token, government has chance to select. Thus in order to make the tax affordable the companies may look for chance to act in the common rooms which were agreed by the accounting policy and tax regulations. And this planning method has the characters of low cost and easy to operate, compared with other planning methods, so the tax planning is a good way for most companies. The corporate accounting policy choices will be influenced by all the interested parties, for companies, this influence is related to their select of tax planning accounting policies. For this, we proposed three assumptions: investors can effectively avoid "adverse selection" and "moral hazard", the Government can formulate a reasonable tax system, employees can be loyal to the company. On these assumptions, companies can choice tax planning accounting policy smoothly. Therefore, it is possible for the companies to implement the accounting policy choice through tax planning smoothly in reality.Carried out tax planning in this way, we must insist on the principles of not illegal, consistency, planning, risk minimization, benefit maximization, and economics, only in this way can we ensure the smooth conduct of tax planning and make benefits.Linked with new accounting standards and the latest tax system, we proposed eight specific planning model methods about selections of sales mode, inventory valuation method, and investment property measured, expected to give companies some effective tax planning guidance.Innovation of this paper is: in general, we proposed the tax planning ideas through the accounting policy choices, and put forward two specific ideas: First, we can achieve the purpose of cutting tax and Deferred tax by means agreed by tax laws; second we can choose to make low profits accounting policies for these tax law does not clearly defined.Combined with new accounting standards and the latest tax plan,, we put forward specific methods about tax planning. Inadequacies of this article is: we have not analyze benefits tax planningcan afford to companies through a specific example , we also have not analyze how many benefits can tax planning bring to companies that the accounting policy choice of planning methods combined with other planning methods, which will be analyzed in future studies.