Application Research On Using Choice Of Accounting Policies Approach To The Income Tax Planning Of Tan Cheng Company

The enterprises put more emphasis on application of tax planning to reduce taxbearing. Since the new enterprise income tax implementation in2008, seeking tomaximize after-tax income, achieved double wins between the national and companies,is a problem of growing concern for each taxpayer.There are a variety of tax planning methods. The choice of accounting policies isone of them. The continuous improvements of China’s accounting standards provid ethe guarantee to enterprises,so they can carry out tax planning by choice accou ntingpolicies. Use different accounting policies and different accounting treatments willlead to different after-tax income. Then programs of enterprises tax planning will bevarious too. The most notable feature of this method is that the choice of accountingpolicies, almost entirely accomplish independently, and the program is subject toeconomic and technological conditions of small, low cost planning, technicaloperability.This paper writes on background of new accounting standards and the newEnterprise Income Tax Law. First it starts to the basic theories of tax planning andaccounting policies, and reviews the theoretical development of the situation at homeand abroad, and makes comments. Through analyzing, it concludes the necessity andsignificance and feasibility to carry out tax planning and accounting policy choice inour country.Focus on the methods of tax planning undertaken by the selected methodof accounting policies. Then providing tax planning solutions In contrast to the casedescribed by the accounting policies for tax planning impact,. In this paper, Tan chengcompany is research object. It starts researches from the company’s tax-related cases,then points out the inadequacies of the current aspects and problems when plan tax. Ittry to make suggestion about choice of accounting polices and solve the problems oftax planning by using previous studies concluded, Combined with the company’soperating characteristics.