Research On Anti-tax Avoidance In China's 2018 Individual Income Tax Law

With the revision of the new individual income tax law in 2018 and the completion of the first tax-related information exchange between the state administration of taxation of China and the state administration of taxation of other countries,the issue of anti-tax avoidance of individual income tax in China has once again aroused extensive discussion.Tax avoidance or anti-tax avoidance,this is the right conflict between private property right and state expropriation right,the concept conflict between formal rule of law and substantive rule of law,and the discussion on whether tax law is dependent on justice or independent of tax law.Tax avoidance,whether domestic or foreign,whether economic or legal,has always been a controversial area,and there has been no consistent and accurate definition.However,the accurate definition of tax avoidance has a far-reaching impact on the tax legislation of the legislature and the enforcement of the administrative and judicial organs.Therefore,it is necessary to clarify the concept of tax avoidance,and clarify the legal basis and necessity of anti-tax avoidance,in order to define the nature of tax avoidance and take appropriate countermeasures in the future.Therefore,it is necessary to define tax avoidance in legislation and theory.In terms of legislation,tax avoidance is mainly defined by the newly revised tax law in 2018 and the international convention that China participates in(taking CRS as an example).In theory,it mainly discusses the connotation and extension of tax avoidance.Except under the new individual income tax law on the definition of tax avoidance,and about the components of the tax discussion is also very important,because want to legalize the anti tax avoidance,then its inevitable requirement is to tax the delimitation of the constitution of crime,so the component elements of crime in criminal law theory under the premise of can try to put forward the theory of constitutive requirements of tax avoidance,and,of course,this requires a general anti-avoidance correspond to special anti tax avoidance,tax avoidance theory of constitutive requirements will distinguish general tax constitutive requirements and special tax theory of constitutive requirements.In addition to the discussion on the components of tax avoidance,the discussion on the legal nature of tax avoidance is equally important.In theory,there are three theories to define the legal nature of tax avoidance,namely,"legal theory","illegal theory" and "legal theory".In legislative practice,it is through the enterprise income tax law,tax administration law,criminal law and other tax normative documents to define the legal nature of tax avoidance.In order to provide sufficient theoretical basis for anti-tax avoidance,it is necessary to discuss the legal basis of anti-tax avoidance,taking the principle of quantitative taxation,the function of tax nationalism,the function of fiscal revenue and the function of regulating economic activities as the legal basis of anti-tax avoidance.Indeed,our country individual income tax law also includes new transfer pricing,controlled foreign companies and general anti-avoidance rules,but in theory and practice of our country tax authorities struggle to cope with the complexity of the personal income tax,tax avoidance phenomenon,therefore,it is necessary based on the analysis of our country individual income tax taxpayers tax typical model and on the basis of the subjective and objective reasons of tax avoidance,and through the comparison of individual income tax on international anti-avoidance legislation to complement each other,put forward our country personal income tax anti-avoidance system need the perfect part,specific needs perfect part includes the following: First,the legal level of general anti-tax avoidance should be improved,that is,the general anti-tax avoidance rules applicable to all types of taxes and all areas should be added in the tax administration law.In addition,it is necessary to formulate general anti-tax avoidance rules to link corporate income tax and individual income tax,and to regulate the individual income tax avoidance of non-resident individuals transferring property in China.Second,establish the transfer pricing rules for individual income tax;Third,modify China's CFC rules;Fourth,establish a sound information disclosure system for individual taxpayers.