The Interpretation Of Reasonable Commercial Purpose In The General Anti-tax Avoidance Rule

The instantaneous changes in the business society have made the company and individual tax avoidance methods vary,and special “commercial arrangements” are used to hide the real tax avoidance purpose.“Reasonable Commercial Purpose”,as the rules of judgement,is set in the general anti-tax avoidance tax terms of corporate income tax and also individual income tax in China.Whether it is applicable depends on whether the purpose of the taxpayer’s tax avoidance practice is allowed by the tax law,or whether it is prohibited or not.In other words,the core of whether it is applicable to the requirements of law lies in the purpose of the tax law interpretation.“Reasonable business purposes” is the “killer” to fulfill the legislative intention when any other clause fails to prove the tax interest is on the opposite of it.This paper considers the “reasonable business purposes” as a general anti-tax avoidance term in China,which involves the problems of power subject,necessity,method,principles,purpose,etc.,these elements can be attributed to two aspects,the legitimacy problem of power subject.In addition,it is the issue of explaining and interpreting the methods the power subject takes to exercise this principle.Accordingly,this article is based on the following framework.The first chapter introduces the development process of the principle of reasonable commercial purpose in the general anti-avoidance rule system and its localization status in China and draws three levels of interpretation dilemma through the existing cases involving the interpretation and application of the principle of reasonable business purpose.Chapter 2 discusses and analyzes the controversy of interpretation standards,Chapter3 analyzes the situation and problems of subject distribution and gives solutions respectively.Chapter 4 demonstrates the differences in interpretation goals and gives three methods to improve.By analyzing the existing cases,this paper aims at the interpretation of reasonable commercial purposes,and concludes that disputes exist in the interpretation standard and interpretation level,and the interpretation dilemma can be attributed to the interpretation target level.Accordingly,based on the disputes,this paper maintains that for the interpretation of the target disputes,the subjective standards should be clearly adopted,and the objective factors should be used as auxiliary;the executive subject has legitimacy,but its exercise of power can be restricted and perfected through the typo-logical interpretation method and the principle of proportionality;for the misunderstanding of the interpretation target,it is believed that the taxpayer-centrism position should be adopted,and the hierarchy should be achieved by establishing direct targets,indirect targets and final targets.target guidance.This paper aims to explore improving solutions to the interpretation disputes and dilemmas of the principle of reasonable commercial purpose in general anti-avoidance rules,and to provide academic theories and practical references for how to apply the regulation of general anti-avoidance clauses to changing commercial purposes.