On The Application Of The Principle Of Economic Substance In Enterprise Reorganization Tax Law

Tax avoidance and anti-tax avoidance are a basic proposition in tax law theory and practice.While the principle of economic substance is of concern because of its strong anti-avoidance function but with the basic tax principles.Tax avoidance is that kind of behavior that for the purpose of avoiding tax taxpayer abuse of freedom of choice of legal form and tax loopholes in order to avoid tax obligations,in line with the provisions of the tax law but contrary to the purpose of tax law.Because the tax law itself has an unavoidable nature attribute and its remarkable national requirements regulate tax evasion.In the field of mergers and acquisitions of enterprises,due to the existence of objective tax law loopholes and the differences between different taxes and other reasons makes the company through the abuse of the form of choice of free design complex roundabout of the reorganization of the transaction model,cut the private law and tax law connection point,no longer meet the tax requirements,so as to achieve the purpose of tax avoidance.Corporate reorganization of mergers and acquisitions tax avoidance with a high degree of technical and hidden,which is the difficulty and focus of anti-tax avoidance.It can be said that the perfection of corporate restructuring tax system can not be separated from the establishment of anti-tax avoidance system,highlighting the dominant position of anti-tax avoidance in corporate reorganization tax system,and establishing long-term effective anti-avoidance system is the direction of our efforts.At present,China has formed a “reasonable business purpose”based corporate restructuring anti-tax avoidance principles and some specific anti-avoidance arrangements.The multi-step,anti-avoidance investigation,which is designed to be roundabout to the enterprise,actually involves the interpretation of the tax law beyond the meaning of the law.In practice,the "reasonable business purpose" principle to the tax authorities anti-avoidance operation of the guidance is not strong,the tax authorities on the interpretation of the tax law is very large,resulting in anti-tax avoidance uncertainty.The principle of economic substance is established in the practice of corporate reorganization of anti-tax avoidance in the United States,In the long-term development and debugging in the formation of a "business purpose" and "economic substance" as a dual element of the unique anti-tax avoidance review mode,so that it is of great significance to perfect the anti-tax avoidance system of Chinese enterprises.The principle of economic substance through the merger and acquisition of corporate mergers and acquisitions on the surface of the form of transactions,to review the economic essence behind it to determine the taxable facts,which is the best practice of the principle of taxable.However,it can not be ignored that the application of the principle of economic substance has a certain impact on the legal principle of taxation,but the consequences of this impact is not the right and the other,the two unified in the tax law.At the same time in the discussion of the conflict between the two,we can also see the independent value of tax law,tax law should be independent from the private law.In addition to the theoretical self-sufficiency,the principle of economic substantive regulation of corporate restructuring tax avoidance also has the conditions for system construction,including the reorganization of enterprises to review the start mechanism,"business purpose" and "economic substance" two aspects of the review content and specific review criteria,Review methods and so on.However,in terms of the current development of corporate restructuring tax system,it is not enough to draw on the principle of economic substance as a specific anti-avoidance measure,it is necessary to establish it as a general anti-avoidance clause in order to establish a long-term anti-avoidance mechanism.