Research On The General Anti-avoidance Rules Of Individual Tax In China

With the rapid improvement of the national economy,personal income tax has experienced more than 20 years of development in China since it was levied in the1980 s,and it has become an indispensable part of China's taxation.But at the same time,the phenomenon of tax avoidance in our country is becoming more and more common.The means of tax avoidance are constantly being upgraded,and various tax avoidance methods are emerging one after another.As a result,as the main source of national income,personal income tax accounted for a severely low proportion of the total national income.How to combat tax avoidance is not only a problem facing China,but also a problem to be solved by other countries.Nowadays,the international community pays more and more attention to the task of anti-tax avoidance,and the coordination of anti-tax avoidance among various countries has also been strengthened.In the context of the BEPS(tax base erosion and profit transfer)action plan and CRS(automatic exchange of tax account information related to financial accounts),China has also joined the anti-tax avoidance craze.On January 1,2019,the new "Individual Income Tax Law" was officially implemented.So far,our country has ended the long-term lack of effective anti-avoidance rules in the field of personal income.The introduction of anti-avoidance rules has become a major bright spot in the reform of China's personal income tax law,which fills in the current legislative deficiencies in the lack of an "anti-avoidance" system for personal income tax.Among them,the "transfer pricingrules" and "CFC rules" provide a powerful system guarantee and law enforcement basis for tax authorities to collect taxes.More importantly,this new tax law also introduces general anti-avoidance provisions.The author believes that the introduction of general anti-avoidance rules at the level of individual income tax collection is a good thing,because it can make up for the rigidity and gaps in the law,and crack down and correct many new types of tax avoidance at the individual level;but at the same time the introduction of general anti-avoidance rules is also One thing that deserves everyone's attention,because unlike enterprises,natural persons are not only "humans" in the legal sense,but also "humans" with flesh and blood and self-consciousness.They pay more attention to their legal rights not to be violated.The general anti-avoidance rules,due to their conceptual ambiguity and unclear starting standards,will inevitably cause tax authorities to dispute with taxpayers in future applications,and may even infringe on the legal rights and interests of taxpayers due to improper application.Therefore,it is necessary to consider and define the concept and applicable standards of the general anti-avoidance rules in the new tax law.Judging from the provisions of individual tax laws,the usage of general anti-avoidance rules is roughly the same as the provisions of Article 47 of the Corporate Income Tax Law,but it is worth noting that the introduction of general anti-avoidance rules by the new tax law is in accordance with legal principles? Is it operationally feasible? For the understanding of reasonable business purposes,should the regulations in the field of corporate income tax be copied? These are all issues worth considering.The author believes that because of the different applicable subjects,the general anti-avoidance rules at the individual tax level should be distinguished from corporate income tax in understanding and application.This article's thinking is based on this point,combined with extra-territorial experience,trying to improve the application of general anti-avoidance rules at the individual level,trying to find a balance between safeguarding national tax interests and protecting taxpayers' legal rights.