Study On The Legal Application Of Substantive Taxation Principle In Anti-Tax Avoidance In China

The principle of substantive taxation refers to the taxation of taxpayers' legal activities in the form of taxation.Tax avoidance behavior,although its form does not violate the prohibition of the law,will lead to improper tax revenue loss,contrary to the principle of tax fairness,with substantive illegality.Therefore,from the perspectives of safeguarding national tax and ensuring the legal rights and interests of honesty taxpayers,anti-avoidance is of great significance.The beginning of substantive taxation principle is to regulate tax avoidance behavior,so anti-avoidance is the main area of its function.As an independent principle of tax law,the principle of substantive taxation runs through the whole process of tax legislation,law enforcement and judicial process.Its purpose is to supplement the defects and limitations of taxation legalism and realize the substantive justice of taxation.Although China's anti-tax avoidance work started late,but the principle of substantive taxation in anti-tax avoidance work has also been a certain application.In the legislation,the "Enterprise Income Tax Law","Tax Collection Management Law" and the State Administration of Taxation to develop some of the normative documents are embodied in the principle of substantive tax principles;on the law enforcement,the tax authorities use the principle of substantive taxation to identify and punish the use of companies of special purpose,the abusement of tax incentives and other methods of tax avoidance;on the judicial,the judicial organs use the principle of substantive taxation on the facts of the tax case and other issues to define.Although the principle of substantive taxation has accumulated some experience in the application of law in anti-tax avoidance in China,due to the shortcomings of our tax system,there are still some difficulties in the application.First,in the legislation,the law has not yet defined the principle of substantive taxation,anti-tax avoidance of the provisions of the State Administration of Taxation is caused by the lower level of effectiveness,and the specific legal provisions need to be improved.Second is law enforcement,the application of the principle of substantive taxation gives the tax authorities a greater discretion,but its lack of restraint mechanism may lead to the abusement of power,and because of tax avoidance and professionalism,which has brought great challenges to the tax authorities to their work of collecting information and talent team building.Third is judicial,on the one hand,judicial independence is difficult to protect,on the other hand,the judicial process for the relevant evidence and legal basis for judicial review is also very limited,and the existing tax-related judicial security system is difficult to effectively protect the legal rights and interests of taxpayers.From the reality of our country,we can improve the legal application of the principle of substantive taxation in our anti-tax avoidance from the following aspects.In the aspect of legislation,the principle of substantive taxation should be legalized and the laws and regulations of anti-tax avoidance should be established.At the same time,the laws and regulations related to anti-tax avoidance should be perfected.In the aspect of law enforcement,we should strengthen the restriction on the discretion of tax authorities,strengthen the legal capacity of tax staff.In the aspect of judicial,you can try to establish a special tax judicial organs,to strengthen the application of the principle of substantive tax review mechanism and to improve the tax judicial security system in order to effectively safeguard the legitimate rights and interests of taxpayers.