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The Study of the Tax Preference under the Limited of the Tax Fairness Principle

On 21/09/2013, in Finance, by rain

Tax preference has played an important role in the tax legal system, its essence isto give the taxpayer a different tax treatment and privileges to achieve the goal ofresource optimization and Social distribution. However, tax preference as one ofprivileges contradicts the tax fairness which is a principle of the Constitution, therefore,we have to answer the question whether the tax preference in accordance with the spiritof Constitution. From the view of legal, the taxes fair principle certainly takesprecedence over tax preference, but long periods of theory and practice has shown thatpreferential tax system will persists in the tax system in our country and plays animportant role. So we should coordinate the tax preference and the tax fairnessprinciple. Tax preference as one of the privileges must be limited strictly. To sum up,we should use the following three points as the standard to consider the tax preferentiallegal system: the interests of the public and society, the principle of proportionality, taxstatutory. Only if the tax preferential legal system under the limited of these threepoints, is it legitimate. Taking the Enterprise’s income tax law of China as an example,through analysis this law with the three points we can see there are so many problemsin the legal of our country. The tax preference should clear the content of legislation,and strictly limited the subject of legislation, and promote the legislative level, by theseways we could improve the tax preferential legal system step by step.

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Research on Impact of Tax Preference on R&D Investment in High and New Technology Enterprises

On 11/09/2013, in Management, by rain

Technological innovation, especially research and development (R&D), hasbecome the fundamental drive of the national Economic growth and Enterprise sustaineddevelopment. However, the Enterprise fails to provide sufficient quantities of R&D as ithas the characteristics of inappropriability, uncertainty and indivisibility, which cancause market failure. Therefore, many countries enact a number of tax preferentialpolicies to encourage the enterprise enlargement R&D Investment. New CorporateIncome Tax Law and several regulations, such as Administrative Measures for theDetermination of High and New Tech Enterprises, came into effect in2008, whichprovided munificent breakthrough preferential policies. The effectiveness of tax policieshas attracted the attention of domestic academe. Considering the fact that R&Dactivities not only run through all the whole life cycles of enterprises but also bedifferent in each life cycle stage because of the business conditions, the samepreferential policies will have a various effect on R&D activities in the different lifecycle stages. Therefore,research on R&D tax incentive from the angle of enterprise lifecycle is endued with great practical significance.Based on accountancy, finance and Economics, this article reviews the influencesfor R&D Investment caused by tax preferential policies in different life cycle stages.First of all, this paper introduces the prior researches on the field both abroad anddomestic, including study on the relationship between tax preference and enterpriseR&D investment, the relationship between enterprise life cycle and technologicalinnovation. Secondly, this paper expounds the Basic theories: Economic growth theory,tax incentive theory and enterprise life cycle theory. Thirdly, existing R&D taxincentive policies in China were introduced and those effects on R&D investmentwere analyzed, then the various influences of tax preferential policies on enterpriseR&D investment in the different life cycle stages were explored. Finally, with thepurpose of validating academic analysis, this paper selects high and new technologyenterprises from2009to2011and carries on least-squares regression analysis andfeasible generalized least squares panel regression analysis.The main conclusions of this paper are as follows:(1) tax preferential policy thegovernment settled in our country has a positive incentive effect on R&D investment;(2) R&D tax incentive in the different enterprise life cycle stages are significantly different,and the best effect occurs in the mature stage;(3) enterprise R&D investment dependson other factors more than just tax preference, such as enterprise scales and investmentopportunities, moreover, these factors differ in the different enterprise life cycle stages.According the result of the research above, this paper also puts forward suggestions tomake new policies that meet the requirements for enterprise staggered development.

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The Study on Fiscal Policies Promoting Industrial Structure of Our Country

On 29/08/2013, in Finance, by rain

In the new century, the tendency of Economic globalization is strengthened andthe promotion of the industrial structure plays a more and more important role on thedevelopment of society and economy. The industrial structure of our country is facingmany problems, especially the proportions of the first industry and the secondindustry are obviously high and the proportion of the tertiary industry is obviously low.As an important tool of the government to guide the economy, the fiscal policy caneffectively attract resources to the fields of higher efficiency, and the fiscal policy canalso achieve the optimal allocation of Social resources. Therefore, the fiscal policy hasbeen the tool of the government to promote industrial structure, and making use of thefiscal policy is not only the internal needs of industrial development, but also therequirement of the optimization of the industrial structure. The fiscal policy will helpthe society and economy achieve further development.This essay focuses on the promotion of the industrial structure, and analysis thebasic theory of fiscal policy to promote industrial structure. And the essay also liststhe problems of the fiscal policy in the process of promoting industrial structure, andat last the essay lists the fiscal policies to promote the industrial structure. The essay isdivided into five chapters. The first chapter introduces the backgrounds and thesignificance of the research, literature review, and the brief overview of the researchideas, methods, innovations and the shortcomings. The second chapter includes thedefinition of related concepts, related mechanism and theoretical basis. The thirdchapter introduces the current fiscal policies of promoting industrial structure and theexisting problems, including the evaluation of current fiscal policies and theimplementation effect. The fourth chapter lists some fiscal policies of promotingindustrial structure of some typical countries, including United States of America, theUnited Kingdom, Japan, Singapore, as well as the enlightenments. The fifth chapterlists the detail fiscal policies to promote the industrial structure, including fiscalexpenditure, tax incentives, financial subsidies and the government procurement.

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R&D Tax Incentives in China

On 09/07/2012, in Economics papers, by rain

【Abstract】 Tax expenditure, which is one of the main subjects concerned by modern Public Finance and Taxation, is the new method to bring tax incentives into efiFect It has significance of improving the effectiveness of tax incentives. This dissertation holds the opinion that China need R&D tax incentives and studied how to use tax expenditure to carry on tax incentive policy.Firstly, the tax expenditure theory is studied. The situation in China is taken into consideration when the main issues of applying the theory are raised. When the tax expenditure theory is defined, the relationship between tax preference and tax expenditure is analyzed. The dissertation raised the standpoints that tax preference and tax expenditure both are government’s tax incentive method to support taxpayer. Tax expenditure is the innovative support method while tax preference is the rough support method By normalizing tax preference and using budget to manage, the government can transform tax preference into tax expenditure. The great defects of tax preference could be remedied As a tax incentive way, the calculating method and budget Management is the predominance of tax expenditure. Therefore we should apply tax expenditure to make the tax incentive more effective and make great fruits.The R&D situation in China is studied by using the R&D tax incentive theory. The dissertation holds the opinion that R&D-Expenditure /GDP is the core Economic index and important monitor index for R&D situation Along with the transform of scientific research institutes, company has become the principal part of R&D Investment. Because the natural R&D Investment of companies cannot meet the needs of our society, government’s Economic supports are required By comparing direct finance expenditure with tax expenditure, the dissertate believe tax expenditure can do better in leveraging R&D Investment of companies and further more in leveraging R&D. In the meantime, because non-profit scientific research institute (for example academy of sciences) and universities also have taxable behavior, tax incentive can also support them.The necessity of doing R&D tax incentive by tax expenditure way is expatiated By analyzing the tax preference concerning science and technology, we summarized the problems in this field as too many items, the monotony of tax preference, covering only a few R&D stages, not definitude R&D as incentive target, lack of cost and effect evaluation method and standardization method This dissertation holds the opinion that in the premise of setting R&D as the support target, tax expenditure can solve above-mentioned problems and make tax incentive more effective logically.To validating the opinion, and understanding how to fulfill the R&D effective tax incentive in China, this dissertation draft three stages based on the R&D expenditure and R&D-Expenditure /GDP in order to use other countries’ R&D tax incentive experience in corresponding stage as a reference.After orientation of China by above mentioned three stages, the dissertation considers China just get into the R&D-Expenditure/GDP promoting stage. In this stage, China should support R&D greatly by R&D tax incentives. The principle and steps of applying R&D tax incentive in China is established The tax expenditure is in its trail stage in China, could not be implemented as a whole. At the same time, R&D is in dire need of effective tax incentive. The dissertation holds the opinion that tax expenditure should be used onR&D firstly.Through studying, the dissertation believes that China should use the tax expenditure managing system to put former science and technology tax preferences in order, to regulating the expenditure, raise monitoring efficiency and evaluate the effect The approach and steps to establish R&D tax expenditure in China is raised in the end

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The Research on How to Perfect Tax Preference Policy for Foreign Direct Investment in China

On 02/07/2012, in Finance, by rain

【Abstract】 As the Economic globalization process is accelerated, the competition becomes more intense in fighting for the resource, technology and managerial knowledge etc. In order to share the international capital resources, all countries and areas strengthen comparative advantages in the international competition, and adopt various kinds of encouraging measures to absorb the foreign direct Investment, the tax preference policy is a kind of main form among them .Since reform and opening-up, the foreign direct Investment that our country absorbed is in a situation that is growing at top speed all the time. Direct foreign Investment plays an important role to the Economic development of our country. The tax preference policy is very important in absorbing the foreign direct investment of our country, but there still exists some place needed to be improved. Therefore, in order to continue expanding the absorbing the foreign direct investment and quickenning the development of economy of our country, it is necessary to reform the tax preference policy for the foreign direct investment in our country father.The thesis regards the improving qualities and benefits of the foreign direct investment as main point, and makes the tax preference policy for the foreign direct investment as research center. It adopts theory proving, history investigating and economic analytical methods and analyses in depth the influence of the tax preference policy for foreign direct investment. This thesis makes the international comparison and analysis on the tax preference policy for foreign direct investmen,and proposes that we should make the tax preference policy multimedia,stress the direction of industrial tax preference policy,adjust the direction of the regional tax preference policy and unify the income tax of foreign and home enterprises in order to perfect the current tax preference policy for foreign direct investmen while keeping its stability and continuity.It also compares the tax preference policy for foreign direct investment of all countries and aeres in the pattern and the type, and it point out that its tax preference policy has legal system nature strong, the way is flexible and characteristic of relying mainly on indirect preference; then in terms of history , it has perspected the formulation of tax preference policy for foreign direct investment of our country and development course.It is a Basic content of a main and characteristic current foreign direct investment tax preference policy of our country to explained with regional tax allowance and reduce or remit the taxes directly, then from the point of the realty, the current tax preference policy ofevaluation and analysis , to the positive role absorbing the foreign direct investment objectively of angle, and from the loss of the tax revenue, the burden of taxation is unjust, it improved and caused the regional polarization etc. and has not explained with the respect that the current tax preference policy exists to unfavorable to domestic Enterprise’s industry upgrading and competitiveness Institutional defect. Finally utilize the targets and development strategies of the foreign direct investment at present and in the future to our country, propose that the foreign direct investment tax preference policy of our country should start with three Basic principles of ” fair principle , appropriate principle , exceptional principle ” , on the basis of keeping the existing tax preference policy stability and continuity of our country, take many kinds of tax allowance way, the implementation position of stressing the direction of industry , adjusting the regional tax preference policy combines the corporate income tax preferential policy of the foreign capitals in unity, thus perfect the foreign direct investment tax preference policy of our country further.

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The Research on Tax Policies of Reducing Regional Economic Disparities of Our Country

On 25/06/2012, in Finance, by rain

【Abstract】 The non-equivalent development of regional economy, i.e. the existing of regional disparities, is a kind of phenomenon which exists commonly during the course of Economic development. The existing of disparities of regional economy has its reasonability and significance. But excessive regional Economic disparities will bring about some of passive influence, which is already non-arguing fact. From the reform and open, regional disparities are increasingly expanding. Our country has become one of the countries which have serious regional disparities. The serious fact calls theory and policy research for reducing the disparities of regional economy.The paper researches the question in terms of tax policies. Firstly, the paper clarifies government’s important part in the course of adjusting regional disparities, and analyses the effect of tax policies during the course of regional economic development; Secondly, the paper takes positive analyses for regional economic disparities of our country. By the compare of primary economic index, the paper describes the present situation of regional economic disparities, and analyses the tax factors which make regional disparities’ expanding. At the same time, the paper explains the important significance of reducing regional economic disparities. Thirdly, by means of introducing other countries’ practice for accelerating the development of undeveloped regions, the paper summarizes general experience. Finally, on the basis of analysis on theory and realistic questions, the paper puts forward the measures of reducing the disparities of regional economy from the principle of dealing with economic development across the region. The measures include tax policies of accelerating the development of Middle and Western China and tax policies’ adjustment of Eastern China. The former is emphasized from three aspects, which includes optimizing tax category, improving revenue-sharing and improving tax preference. At the same time, tax policies must strengthen coordination with other measures.

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The Influence of the Tax Preference Policy to Chongqing’s Economy Development

On 10/06/2012, in International, by rain

【Abstract】 The tax preference is government given specially object of taxation, area and taxpayer tax incentives or favorable regulations by the form of law as per general aim of Economic, political and Social development at stated periods. That is to say the tax preference is a preference clause to some activity, some assets, some form of organization and some form of financing stipulated in the tax law. Such to subtract expenses from activity of research and development, and to accelerate depreciation of capital etc. It is obvious that tax preference is a special tool of adjusting society and economy, also is the most important content of taxation policy. A report about tax preference in 1995, the OECD affirmed that the tax preference promote the beneficiary countries in Economic and Social, at the same time it point that tax preference bring bad influence, especially the developing countries’ overfull tax preference concerning foreign parties bring on malignant tax competition and make against the development and tranquilization of the world economy. So we suggest that the developing countries abolish tax preference policy concerning foreign parties. At the same time, our country have actualized a great deal of tax preference since reform and opening. As plenty of tax preference and problem, more and more practical man and theoretician ask for adjusting current tax preference policy. While to it’ s function and reform’ s direction, nobody decide which is right. Some people even suggest to abolish it The controversy has influenced the government’ s choice of macroeconomic control. So the right knowledge to the effect and

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Research on Foreign Corporation Tax Preference of China Joined WTO

On 26/05/2012, in Finance, by rain

【Abstract】 Since the reform and open of China, foreign corporation played an important role for China, it speeded the economy, optimize the Industry, introduced into international technology and Management experience. Nowadays, economy is being global, for the sake of international capital, the countries took measures to attract foreign capital one after another, tax preference is one important measure among it. For the sake of attracting international capital, China also established tax preference for foreign corporation. On the one hand, tax preference introduced into foreign capital and speeded the Chinese economy, on the other hand, tax preference hade many abuses and did not fit China’s deep reform and open to truly be in harmony with world economy. Especially after China’s into WTO, a series of policis cannot conflict with WTO rules, it must satisfy WTO rules. But many foreign corporation tax preference of China have are not on speaking terms with WTO rules.So after China’s into WTO, government officials, scholars and many-handed pay more and more attention to foreign corporation tax preference. Foreign corporation tax preference is becoming an important and disputed research task. And the frame of WTO, use for reference of advanced theory and practice of other countries, enclosed the economy development stratagem, carried out the rule of national treatment, take many reforms to foreign corporation tax preference.

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Tax Avoidance of Multinational Companies and Tax Anti-avoidance of China

On 10/05/2012, in Finance, by rain

【Abstract】 With the rapid development of the Economic globalization, the multi-national enterprises (MNEs) have become the dominant power of the world economy. In order to maximize their profits, the MNEs globally allocate their resources. As there are various differences among countries on tax rate, legislation and administration, the MNEs can conveniently make their global tax plan. In addition, the rapid development of Economic and lagged improvement of legislation have promoted the situation of international tax avoidance (ITA) which does harm not only to tax escaping but also tax dominion and principle of tax fairness.After its entrance of WTO in 2001, china is in great harmony with the whole world. By the end of 2002, China has become the country that attracts most foreign direct investments in the world. MNEs play more and more important roles in china’s development of Economic. Accordingly, the problem of ITA has become the biggest concern of Chinese tax authority. MNEs avoided tax nearly 30 billion every year. They escape tax by the pseudophase of book loss. ITA is decreasing Chinese financial revenue;weakening competition power of domestically funded enterprises;disturbing the economic order and making negative effect to the moving of international funds.Proceeding from objective realities and using other’s research for reference, this article analyses Chinese ITA by case studying. It tells the situation, harm of ITA and the common methods taken by MNEs. By deep analysis of successful ITA experience of developed countries, it offers suggestion and reference to that of china. This article includes four chapters. In chapter one, it analyses the actuality, reasons and harm of ITA. In Chapter two, it introduces common used methods of ITA. In chapter three, it studies the successful experience of developed countries for ITA from the aspects of lawmaking and law executing. In chapter four, from the aspects of legislation and tax collection Management it offers suggestion and countermeasures to ITA of china.

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Research on the Reform of Enterprise Income Tax System of Our Country

On 09/05/2012, in Finance, by rain

【Abstract】 To reform and improve Enterprise income tax is an important research projectthat draws great attention from current Economic theory circles in China. Sincereform and opening up, with the continuous improvement of socialist marketeconomy, the tax system with circulating tax as the main body and income tax as thesubsidiary has taken shape initially in China. This tax system plays a positive rolein promoting the development of Chinese economy, which is undergoing changes.However, under the influence of special historical background, there still existgrave drawbacks in legislation, content, administration. With China’s entry intoWTO, together with the changes in international income tax system it is becomingincreasingly urgent to improve and perfect Chinese corporate income tax system. Tofurther improve Enterprise income tax system and make it adapt to Chineseconstantly deepening reform and opening up is the core issue of the thesis.