Research On Anti-tax Avoidance Rules Of The Individual Income Tax Law

The personal income tax is an income tax levied on all kinds of taxable income obtained by natural persons.It is one of the main tax types in the tax structure of China.It plays an important role in the national fiscal revenue,fair distribution and macroeconomic regulation.Since the introduction of personal income tax in 1980,China's personal income tax has maintained strong growth.In 2017,China's personal income tax income totaled 116.6 billion yuan,second only to value-added tax,consumption tax and corporate income tax,ranking fourth among 18 taxes.However,there are still some problems to be solved in China's personal income tax.On the one hand,the proportion of personal income tax income to total tax revenue is always lower than the average level of other countries.According to the International Monetary Fund(IMF)statistics,the income tax income of developing countries The average value of total tax revenue is 10.92%,and the average value of industrialized countries is 29.04%,while China is always around 6%.On the other hand,according to calculations,in 2011-2015,the loss of China's tax year is about 600 billion yuan,and the amount of tax loss accounts for more than 40% of the tax revenue capacity.Finally,for the developed countries such as the United States,the personal income tax has a tax burden structure of “inverted pyramids”,and high-income groups bear the main income of individual taxes.However,although high-income groups in China have large assets,they do not contribute much to taxation.The reason is that the natural person is absent in the anti-tax avoidance legal system,and individuals using various forms of tax avoidance are the main factors leading to the above situation.Therefore,the study of strengthening the anti-tax avoidance of personal income tax has an important impact on China's fiscal revenue.At the fifth meeting of the Standing Committee of the 13 th National People's Congress on August 31,2018,the "Decision on Amending the Individual Income Tax Law of the People's Republic of China" was passed.The new tax law has made significant changes to the original content.One of them is to increase the anti-tax avoidance provisions based on the international regulations and the relevant provisions of the corporate income tax law.Anti-tax avoidance rules include transfer pricing,controlled foreign companies,and general anti-tax avoidance provisions,which will have a profound impact on future tax collection and management.However,how the anti-tax avoidance rules should be applied in practice,and how the relevant concepts and situations in these three articles should be identified and applied.The current laws and regulations are not clearly defined.To this end,this article will analyze the vagueness and controversy in the application of anti-tax avoidance rules based on Article 8 of the tax,and explore the methods to deal with it.