The Identification Of The Reasonable Commercial Purpose In China Tax Law

With the development of economy,capital transnational flow is becoming more frequent.In the process,non-resident enterprises transfer shares indirectly and tax-avoidance conducts emerge frequently.This causes huge tax losses and damages our country's economic interests.Related authority issued serious of policies,but the identification of reasonable commercial objectives is controversial and it stirred up a widespread controversy in practice.In view of the above,this paper has teased apart the identification of reasonable commercial objectives in China Tax Law and compared with the foreign tax system to find the similarities and differences combining theory and practice.Then,a real tax related case has been used to amylase the characteristics and weaknesses in china tax law.Finally according to relative legislative experience,the paper presents some suggestions against deficiencies.The case study is mainly to sort out the classic case of anti-tax avoidance to find out the present problem(1)too many fuzzy words on the "reasonable commercial purpose" in the provisions.(2)Other related issues,including legal effect of the announcement of the No.7,and so on.According to the analysis above,the author come up with the following suggesstions(1)refine the value of ambiguous words and analyze the problem of economic substantive judgment;through profit stripping intuitive and quantifiable way to sort out tax revenue's purpose;introduce typed ideas and establish case guidance system.(2)On regulatory mechanism,the author suggest we clarify the legal system of taxation,strengthen tax rigidity,enhance tax compliance,and strengthen tax information exchange.