First, recognize the trap. Tax planning is understood from a legal perspective, and I think it is an act that is neither legal nor illegal. On the one hand, the starting point of tax planning is not based on the violation of tax laws and relevant regulations. It uses relevant laws and regulations, especially the loopholes in tax regulations and the difficulties of tax authorities in collecting and managing cooperation. In this sense, tax planning is not illegal. Sex. On the other hand, no country currently treats tax planning as a legal act and protects it by law. On the contrary, tax authorities in various countries have carried out anti-planning activities to varying degrees, and listed the relevant anti-planning provisions separately or implicitly in tax regulations. And related regulations. For example, in China, Articles 35, 38, 39, 40, 41 of the Regulations for the Administration of Tax Collection and Administration of the People's Republic of China, Article 7 of the Provisional Regulations on Value-Added Tax of the People's Republic of China, Article 10 of the Provisional Regulations on Consumption Tax of the People's Republic of China, Article 10 of the Provisional Regulations on Enterprise Income Tax of the People's Republic of China, Article 13 of the Law of the People's Republic of China on Foreign Investment Enterprises and Foreign Enterprises Income Tax, and the Third Financial System of Industrial Enterprises Articles XI, Thirty-two, Thirty-three, and Forty-three, "Regulations on Tax Management of Business Transactions of Related Enterprises", etc., these terms and regulations have certain anti-planning effects. If we simply emphasize the legitimacy of planning and disobey the management of the tax authorities, it will trigger conflicts with the tax authorities in action, and escalate the planning behavior into tax-fighting behavior. Another trap in the understanding is that tax planning is to carry out ingenious tax evasion, tax evasion or tax evasion; it is to revamp the tax evasion method; that is, by engaging in some relationships, taking the road, walking the door, paying less, less penalty Such an understanding is extremely wrong and will directly lead to illegal and irregular behavior. Second, the operation of traps. Operational traps are mainly manifested in the following aspects: 1, credulous theory preaching. At present, there are quite a few books on tax planning or similar, but there are not many practical applications. Because these teachings or discourses often neglect many preconditions and environments that meet the goals of tax planning, rendering is a kind of planning. atmosphere. For example, a number of case studies in the book "Tax Avoidance" published by a publishing house in 1998 describe the tax rate table and related regulations before the 1994 tax reform. There is a book called "Enterprise Tax Planning Strategy and Cases" with more than 100 pages of direct plagiarism related to Taiwan's publications. The words "Republic of China" appear several times and are shocking. Tax planning decisions are related to all activities of production, management, investment, wealth management, marketing, management, etc., and have an overall impact. Tax planning can only succeed if certain conditions are met. Simply planning for paying less taxes will inevitably fall into the operational trap. For example, the tax law stipulates that the interest on corporate liabilities can be deducted according to regulations when calculating the taxable income. In theory, it is generally considered that debt financing has a tax-saving effect on enterprises, which is conducive to raising the income level of equity capital and optimizing the capital structure of enterprises. However, in fact, the above effects of debt financing are only practical when the cost of liabilities is lower than the investment income before interest and taxes. When the liability cost exceeds the investment income before interest and tax, the debt financing will show a negative leverage effect. At this time, the return on equity capital will decrease as the debt quota and proportion increase. Moreover, as the debt ratio of enterprises increases, the financial risks of enterprises and the risk costs of financing will inevitably increase. Therefore, enterprises should carry out tax planning. If they do not consider the various objectives of the enterprise, they should only choose the tax burden. The standard of the tax plan may lead to a decline in the overall income of the company, and the sesame is lost and the watermelon is lost. 2. Ignore planning costs. Any tax planning has a cost (ie, opportunity cost), and there are related costs when tax planning reduces tax burden. If enterprises use transfer pricing to reduce the tax burden, they need to spend a certain amount of manpower, material resources, and financial resources to set up institutions in low-tax areas or international tax havens; conduct necessary tax consultation before tax planning, and even hire professional tax experts to hire them. Planning and so on. Another way to convert a general taxpayer into a small-scale taxpayer is to lose some of the customer because the VAT invoice cannot be used. If the depreciation accrual method and the inventory evaluation method are re-selected, the corresponding cost will also be incurred. In short, a “cost-benefit analysis†is required during tax planning to determine whether it is economically feasible and necessary. Otherwise, it is very likely that it will not be worth the candle. 3. The intrinsic link between the tax types. Each type of tax appears to be independent, with separate regulations and implementation rules, and in fact they have more or less intrinsic links through the carrier of economic activity. In this regard, a simple calculation formula for calculating the taxable income through corporate income tax can be visually seen. Taxable income = total income - costs, expenses, losses, etc. that are allowed to be deducted - consumption tax, business tax, urban construction tax, resource tax, land value added tax, education surcharge, etc. When we plan the turnover tax involved in the formula, the purpose of reducing the tax burden can only be achieved when the tax burden of the reduced turnover tax is higher than the corporate income tax burden. Otherwise, it may be possible to pay less some turnover tax after planning, and may pay more corporate income tax later. 4. Despise the anti-planning ability of the tax department. Despite the efforts of the tax authorities in China in recent years, the quality of personnel has improved and the level of equipment has improved. However, compared with taxpayers, there is still a phenomenon of inverted quality of business. It is this phenomenon of upside down that makes some operators Tax planning is understood as a high level of financial fraud, through tax evasion, tax evasion, tax evasion and tax fraud. These practices of playing with fire are not really tax planning, and will be subject to legal sanctions. Third, the time trap. In the final analysis, tax planning is a taxpayer's effective use of the relevant tax regulations and related provisions of the omissions and defects, and pay less taxes without violating relevant laws and regulations. One of its basic characteristics is not illegal. But what is illegal and what is not illegal is entirely dependent on the specific laws and regulations of a country. The specific laws faced by taxpayers from one country to another may be different. With the passage of time, the laws of the same country may also change, especially for tax planning, the state and tax authorities do not. It may be ignored, and the state and tax authorities will take corrective and adjustment measures on the incompleteness and unreasonable laws and regulations exposed during the planning process. When taxpayers face changes in national laws, the nature of their actions will change accordingly. Therefore, any tax planning plan is formulated in the context of a certain business operation under a certain time and a certain legal environment. It has obvious timeliness. The true winners of tax planning are the “prophetic†people who continue to make financial innovations and marketing innovations. When a planning method is accepted by taxpayers and widely used, it is also the day of the national Duse vulnerability. That is to say, not violating the law at this time does not mean that it is legal in the future. At this time, it is a more favorable taxation scheme, and then it may be a poor taxation scheme. If the duration of the "vulnerability" and the method of plugging the loophole cannot be accurately judged, it is very likely to fall into the "time trap" of tax planning.
Beware of tax planning traps