Legal Research On The Right To Tax Saving Of Taxpayers

Tax avoidance is like the shadow of tax payment since they came into being. Thetraditional view was that tax avoidance and tax payment were two contrary concepts,which should be clearly distinguished. And tax avoidance must be punished by lawand subject to moral backlash. Along with the advancement of the tax theory,especially the improvement of principle of statutory tax, a new voice emerged.Along with the growing sophistication of tax revenue function of regulation andcontrol of governments, governments began to use tax policies to regulate and controlthe macro economy. Now our state encourages taxpayers using preferential taxpolicies to save tax.There are four parts in this paper. It brings the taxpayers’ right of tax saving andthe preferential policies for encouraging automobile companies to merger, acquire andreorganize together to reflect that the application of taxpayers’ right of tax savingcould lighten the tax burden of taxpayers, and promote tax economic regulationfunction at the same time.The first part of the paper analyzes the correlative concepts and explains thelegitimacy and positive significance of tax saving. Tax saving refers to the taxpayersmaking full use of the preferential policies to reduce their tax burdens by arranging the production, operation and other matters of their own subjective initiativeactivities.The second part of the paper analyzes the M&A and reorganization within thetax laws. It contains the simple changes of corporate forms、debt restructuring、sharepurchase、asset purchases、merger and division.The third part analyses the necessity and possibility of China’s automobileindustry’s M&A and reorganization. Though there is a big achievement ofdevelopment of Chinese automobile industry, but there is still a gap compared withdeveloped countries.The fourth part is the analysis of a case which could display intuitively that taxplanning could greatly decrease the cost of the automobile enterprise merger,acquisition and reorganization.