Tax avoidance means that taxpayers take appropriate measures to evade their tax obligations and reduce tax expenditures on the premise of respecting tax laws and paying taxes according to law. Tax avoidance is not tax evasion, but a normal and legal activity.

Reasonable tax avoidance refers to the economic behavior of taxpayers to reduce tax payment through legal means and methods when permitted by law.

On the premise of paying taxes in accordance with the law, fulfilling obligations in accordance with the law, and paying taxes in full and on time in accordance with the tax law and its specific tax rules, and under the circumstances permitted by law, tax incentives can be realized to the maximum extent through legal means, so as to realize the economic behavior of taxpayers to reduce taxes. According to its characteristics and contents, tax avoidance can be divided into three forms: domestic tax avoidance, international tax avoidance and tax burden transfer.

From a practical point of view, domestic tax avoidance means that enterprises evade domestic tax obligations through various methods, ways and means. Pay attention to the legality of tax avoidance. The promulgation and implementation of the new tax law has stipulated various preferential tax policies in the form of law. Enterprises should strengthen the research on preferential policies in this area, and strive to make enterprises enjoy various preferential tax policies through income adjustment, avoid taxes to the maximum extent and strengthen their strength.

First of all, "tax avoidance" can be regarded as market competition and does not involve tax fairness. "Tax avoidance" means that enterprises can reduce the tax burden by changing the management mode or organizational structure within the space reserved by law. Therefore, "tax avoidance" is a way for enterprises to win market competition by reducing production costs, and it does not involve fairness.

Secondly, if we simply define "tax avoidance" as illegal, it will lead to conflicts between the legislative principles of tax law. The principle of capacity-based taxation with substantive justice as the core is the essence of taxation and the concrete application of the principle of constitutional equality in the field of taxation. It is the legal basis and ultimate basis for adjusting tax revenue.

legal ground

Individual Income Tax Law of the People's Republic of China

Article 2 Individual income tax shall be paid on the following personal income: (1) Income from wages and salaries;

(2) Income from remuneration for labor services;

(3) Income from remuneration;

(4) Income from royalties;

(5) Operating income;

(6) Income from interest, dividends and bonuses;

(7) Income from property lease;

(8) Income from property transfer;

(9) Accidental income.

Individual residents who obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income) shall calculate individual income tax according to the tax year; Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly or itemized basis. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.