The Perfection Of General Anti Tax Avoidance Of Individual Tax In China

The question of tax avoidance and anti tax avoidance has been the subject of heated debate no matter in theory or practice because it involves the trade-off between tax legislation and energy taxation,and the conflict between the private property rights and the taxation power of a country.First of all,different countries have different attitude at different times.If a country goes against tax avoidance,which rule should it invoke? Then,the general anti-avoidance rule emerges.However,this rule itself is highly controversial.Our general anti-avoidance rule was introduced in the enterprise income tax law of the People's Republic of China and its implementation details,while the rule has always been a point of contention between both sides of the levy.Therefore,we have to perfect it.For the issue of general anti tax avoidance,Chinese theoretical and practical research all focused on the enterprise income tax while when it comes to theindividual income tax,there is no talk about that.Individual income tax could balance the income gap between two Poles and maintain social stability.However,there exists a reality that the low and middle earners' tax burden is heavier than the high earners because of the single source of income.The high earners have different sources and forms of individual income so that they can have different ways to avoid individual income tax,which directly weaken the function of individual income that redistributes income and adjust social wealth.In China,the avoidance of individual income tax has already become a kind of normal state,becoming a kind of "hidden rule" wandering in the edge of the law,even the way of evasion of individual income tax has been widely used.In order to realize the mission of individual income tax that adjust the income gap,a kind of anti tax avoidance rule is needed which can highly summarize all kinds of individual tax avoidance behavior.In recent years,the international community has paid more and more attention to the anti tax avoidance work,and the anti tax avoidance international cooperation has become increasingly close.Under the background of BEPs(base erosion and profit shifting)and CRS(automatic exchange of tax information on financial accounts),China has joined the tide of anti tax avoidance and started the international anti tax avoidance cooperation.A new round of reform of China's individual tax law was completed in 2018,and one of the highlights is the introduction of the corresponding anti tax avoidance rules,which is a solid step of the anti tax avoidance in China's personal income tax.The first two paragraphs of Article 8 of the individual income tax law are special anti-avoidance rules,and the third paragraph is the general anti taxavoidance rule.This paper is based on the beginning of the anti tax avoidance reform,from the perspective of improving the General anti tax avoidance rule,and study the implementation of the enterprise income tax.Through the analysis and comparison of the practice of foreign experience,it discusses the ways to perfect the general anti tax avoidance rules at the level of individual tax.This article is mainly divided into five chapters,starting from the real cases of individual tax avoidance,so as to find out the feasibility and problems of the general anti tax avoidance rules.Chapter one mainly from the individual tax anti-avoidance theory,analyzes the characteristics of personal income which is difficult to cognize the tax avoidance,therefore,the general anti tax avoidance rule is needed to regulate the tax avoidance on the level of individual income tax.This chapter will also discuss the identification standard and the legal nature of the rule.Chapter two mainly discusses the judgment standard of the general anti tax avoidance rule.The existing general anti tax avoidance rules have the problem of confusion of judgment standards,so we need to sort out the legal provisions,as well as the reasons for confusion.Besides,this paper makes a comparative analysis of the existing economic substantive principle and the principle of reasonable commercial purpose based on the real case.Chapter three analyzes the distribution of burden of proof in general anti tax avoidance rule.The present distribution of prove is the tax authorities bear the almost responsibility,while in anti tax avoidance cases the tax payers usually have the main piece of evidence,so we need to adjust the distribution of burden of proof,where thetax payers should bear disproof and the duty of cooperation.Only in this way can promote the smooth implementation of the anti tax avoidance work and improve the administrative efficiency of the tax authorities.Chapter four includes the suggestions from the legislative,judicial,Law Enforcement Angle for improvement for the perfection of the general anti tax avoidance in the level of individual income tax.First of all,a series of Implementation Rules and related regulatory documents should be introduced in the legal area of individual income tax law.The criterion of individual income tax avoidance should be based on reasonable commercial purpose,which should be further clarified in legislation.What's more,the burden of proof of both sides should be clear,and procedural protection of taxpayers' interests is necessary.Secondly,the author suggests that we should give full play to the judicial function and pay attention to the judicial interpretation so as to limit the administrative power and protect the rights and interests of taxpayers.At the level of tax collection and management,it is necessary to establish a tax management system for natural persons with high income,adopt two-way declaration and cross-checking system,and strictly control cash transactions in practice.Finally,when we establish the mandatory information disclosure system to strengthen tax-related information management and control,we should pay more attention to protect the tax-related information of taxpers.