July 20, 2004, Mr, Yan, Directing Partner of Co-Effort, was reported by Consumption Daily. First, he explained the relation and differences between tax stealing, tax evading and tax saving. Tax stealing is violation of laws, tax evading doesn¡¯t violate laws and regulations but conflicts with moral standard, and tax saving is OK on both legal and moral sides.
July 20, 2004, Mr, Yan, Directing Partner of Co-Effort, was reported by Consumption Daily. First, he explained the relation and differences between tax stealing, tax evading and tax saving. Tax stealing is violation of laws, tax evading doesn¡¯t violate laws and regulations but conflicts with moral standard, and tax saving is OK on both legal and moral sides.
As for the question whether enhancement on anti-tax evading measures will bring a fair playground to domestic-funded enterprises, Mr. Yan believed the state will enhancing the strike on tax evading behavior by exploiting the law, but will encourage lawful tax saving measures. Because those international corporations are familiar with all kinds of tax preventing methods, if our domestic industry even doesn¡¯t know how to do tax planning, it will be extremely hard and unfair for them to compete with the foreign ones. The country certainly knows that the national economy is based on vast individual units. Maybe several years ago, China still held a negative attitude against tax planning conducted by domestic-funded enterprises. In current time, it is obvious that the state is positive about this issue. Some enterprises are even helped to do tax planning works.
In the coming tax reform, the state will encourage the development of domestic enterprises by taxation measures, these change will make positive influence on our domestic economy.
