Research On The Problems And Countermeasures Of The Anti-tax Avoidance Mechanism Of Individual Income Tax In China

With the implementation and promotion of CRS and the BEPS action plan,anti-tax avoidance has become a hot topic in the international tax field in the era of economic globalization.In recent years,in order to safeguard national tax sovereignty and prevent the erosion of tax base,all countries are gradually strengthening the anti-tax avoidance management of income tax.The corporate income tax firstly started a precedent of income tax anti-avoidance in our country.After more than 20 years of practice,the enterprise income tax law chapter vi special tax adjustment and the state administration of taxation notice on the issuance of implementation measures for special tax adjustment(trial)(guo shuifa [2009] No.2)were born in 2008.At the same time,China has responded to the call of OECD,actively participated in the BEPS action plan and the G20 international tax reform,and continuously improved and revised the anti-tax avoidance rules system of corporate income tax in the process of practice.Under the development initiative of "One Belt And One Road" in China,with more and more individuals going abroad,individual income tax reform also needs to be further carried out.At present,our country is still in its infancy international tax management of a natural person,which means that we lack of anti-avoidance rules in individual income tax law.Apparently,the related tax law is not comprehensive and experience of international tax collection and administration is relatively lack,which lead to these phenomenon very common and widespread,such as natural person escape individual income tax,transfer the high income and so on.In 2017,China transformed the OECD's CRS rules into a domestic law.In September 2018,the Chinese tax authorities began the first exchange of tax-related information with the tax authorities of other contracting parties.Since January1,2019,the full implementation of the new individual income tax law amendment(draft)introduced the anti-avoidance provisions for the first time and the tax authority would make relevant adjustments according to reasonable methods for the following tax avoidance:individual is not allowed to transfer property to offshore tax havens,individual is not allowed to make unreasonable implement business arrangements for inappropriate tax gain,etc.,which means that the construction of individual income tax anti-avoidance system is in a new chapter in china now.On the basis of formulating the above principles,the direction of the future individual income tax reform in china would be clear: construct a reasonable,effective and comprehensive system of anti-tax avoidance rules.This article firstly indicates the serious loss of individual income tax in China,analyzes the similarities of the anti-tax avoidance mechanism between individual income tax and corporate income tax,expounds the draft reform of individual income tax and the implementation regulations in detail,and finally analyzes the main methods and means for natural persons to evade individual income tax through typical cases.Based on the practice of anti-tax avoidance,the related rule system of corporate income tax in our country has solid foundation,which fully draws lessons from international experience.In the meantime,the OECD has given a hand to construct and perfect the anti-tax avoidance rules for our country.However,we should be aware that the OECD anti-avoidance rules is standing on the position of the developed countries.In order to maintain our country's tax sovereignty,when we are in the process of reference of international experience,we'd better combine China's concrete practice experience with the international experience.And then,it is essential to gradually make contributes in the BEPS action plan and the G20 tax reform to continuously establish the system in line with China's national conditions.Therefore,this article summarizes the corporate income tax anti-avoidance rules system in china,formulates the effective connection of individual income tax and corporate income tax rules,and dig the newest law of foreign anti-tax avoidance in the era of digital economy.Also,it is significant to analyse the latest research results,combine the individual income tax anti-avoidance policies in United States,BEPS action plan,some Asian countries and the areas.By comparing and drawing lessons from the experience of anti-tax avoidance rules of individual income tax in other countries,the authority would effectively discusse the possibility of localized reform of relevant systems and provisions,so as to put forward countermeasures and suggestions for the future system construction of anti-tax avoidance provisions of individual income tax in China.