Research On The Appliance Of General Anti-avoidance Rules In The Conversion Of Personal Income

At present,with the innovation and development in their business management,more and more companies pay attention to reducing cost through optimizing tax payment.It is common that company taxes as less as possible or even evades tax through various tax planning solutions.However,there are different opinions on the legal nature of such behaviors because the General Anti-avoidance Rules are usually carried out behind.At the same time,among those cases,only a few of them are put into the legal proceedings,which,to some extent,has a bad impact on tax sources and legal authority of China.In the article,it will have a discussion on tax evading through converting forms of personal income based on a typical case in Chongqing.In the typical case,the company exploited loopholes in taxation regulations to evade tax.It sat up a new company and changed the way of issuing the year-end bonus of general manager to evade income tax of year-end bonus.The existing General Anti-avoidance Rules include Article 47 of the Law on Enterprise Income Tax,Article 120 of the Implementing Regulations of the Law on Enterprise Income Tax,Chapter 10 "General Anti-avoidance Measures" of the Measures for Special Tax Payment(Trial)and other rules and regulations promulgated by the General Administration of China.However,none of the General Anti-Avoidance Rules mentioned above specifies relevant actions on tax avoidance in the form of converting personal income,making it difficult for tax authorities to uniformly enforce the law.In China,General Anti-avoidance Rules do not specify relevant violation behaviors and is out of operation.The article will start with this,mainly through the inspiration of the case to comprehensively analyze the nature identification of the conversion of personal income.Next,a deep discussion on the practical operation of the General Anti-avoidance Rules,procedures of proof responsibility assignment and the discretion of administrative authorities to apply General Anti-avoidance Rules is carried out.The article aims to promote the development of General Anti-avoidance Rules.In the article,introduction details the research background and significance,literature review on reference at home and abroad and research purposes and methods.Except for introduction and conclusion,the article concludes another three parts:In the first part,it gives details about cases and debates on nature identification of the transformation of personal income.It holds the view that it is illegal to convert the forms of personal income tax to evade tax.There are three reasons to support it.Firstly,conversion of the form of personal income means to evade tax according to the loopholes of General Anti-avoidance Rules.Secondly,it is illegal to convert the form of personal income to evade tax.Thirdly,to evade tax through conversion of the form of personal income is against the principles of taxation with substance and taxation with power taxation with power.However,a small number of people hold positive attitudes to the action of Company A.they support their opinions with four reasons.Firstly,they think that no specified avoidance in existing laws means legality.Secondly,it encourages the companies to innovate and develop.Thirdly,taxation authority bears the burden of proof.Fourthly,there is no limitation in the discretion of taxation authority.And the writer holds a negative attitude towards the conversion of personal income.In the second,a deep analysis on the practical operation of the General Anti-avoidance Rules,procedures of proof responsibility assignment and the discretion of administrative authorities to apply General Anti-avoidance Rules is carried out.In the third part,some target-oriented measures on the practical operation of the General Anti-avoidance Rules,procedures of proof responsibility assignment and the discretion of administrative authorities to apply General Anti-avoidance Rules are proposed.