Tax planning

Author: Chen Chunjie
Publisher:
Publish Date: 2005-04-01
Features: Tax planning is a complex task that involves multiple fields such as financial decision-making, accounting, investment and financing, production, operations, and law. A solid knowledge base is the foundation for conducting tax planning. Under the premise of legality, we must follow specific principles, choose appropriate methods, and carry out comprehensive planning to reduce tax burdens and achieve maximum economic benefits. Based on different principles, methods, and means, tax planning mainly includes three aspects: tax-saving planning, tax-avoidance planning, and tax-shifting planning.
Tax-saving planning refers to selecting the lowest tax-burdened scheme among multiple options available to taxpayers, with the goal of reducing tax burdens while complying with current tax regulations and systems. Tax-avoidance planning refers to actions taken by taxpayers who are familiar with relevant tax laws, without directly violating tax laws, through clever arrangements in financing, investment, and operational activities to avoid or reduce tax burdens. Tax-shifting planning refers to the use of purely economic means by taxpayers to leverage the price lever, transferring tax burdens to consumers, suppliers, or through self-absorption.
The goal of tax planning refers to the economic benefit status achieved through tax planning under a certain tax burden condition. It determines the scope and direction of tax planning and is the key issue that tax planning should address. Currently, there are two opposite problems in positioning the goals of tax planning: one is that the goal positioning range is too narrow, and the other is that the goal positioning is too broad. Both of these approaches are unfavorable to the development of the tax planning industry.
This book is written in simple and vivid language, systematically explaining the basic concepts of tax planning, as well as specific operations such as the establishment of corporate tax planning, tax planning in financing activities, and tax planning in investment activities.