Tax evasion? In any developed or developing country, it is defined as a conscious subjective illegal act. Taxpayers deliberately evade their tax liability and consciously and subjectively evade paying taxes. According to China's Individual Income Tax Law of People's Republic of China (PRC) and Criminal Law of People's Republic of China (PRC), people may face the crime of tax evasion and thus face criminal punishment.
Tax avoidance? In developed countries in Europe and America, in fact, tax avoidance is also a controversial tax planning behavior, which refers to the tax planning behavior made by taxpayers using the legislative space or gray area of tax law and using tax planning skills to bypass the clear provisions of the law as much as possible, so as to make use of the controversial space.
Save taxes, save taxes? In recent years, this word has been mentioned more and more frequently in the international tax law system. The so-called tax saving is a tax planning way to avoid anti-tax avoidance investigation in the face of increasingly transparent tax collection and management environment. At the same time, taxpayers do not use the gray area of tax law to plan additional tax benefits and make legal plans, so it is more and more accepted by taxpayers and legislatures.
Duty-free, duty-free Only legal tax exemption, especially legal planning under the framework of law and taxation, can taxpayers be legally exempted from paying planned taxes.
Under the tax reform
New concept of asset allocation and wealth management
China's tax reform keeps pace with the times. 2065438+March 2008, the National People's Congress officially promulgated and revised the current tax collection and management law and individual income tax law to speed up the legislation of real estate tax law. The legislative proposal of "Real Estate Tax Law" means that from now on, there will be tax in the property holding stage of natural persons in China, which will greatly affect the asset allocation and wealth management structure of high net worth people in China.
From the perspective of personal wealth management, the high-yield channel that used to rely on a single real estate or stock investment can no longer meet the development requirements of the times, especially the essence of finance lies in the balance between risk and income. Diversified asset allocation has captured more investment opportunities, so reducing risks and improving income is an inevitable choice for investors and wealth managers. In this way, in the new era of tax planning, the core of wealth management is risk management. The appreciation and preservation of wealth is not how to choose investment, but how to diversify investment and hedge risks. Individual tax reform will not only adjust the distribution of income and wealth, but also increase the tax burden of single asset allocation in the holding stage, so that the wealth under our existing asset allocation may face the risk of shrinking after tax collection and management.
Therefore, diversification and global asset allocation have become common practices to spread risks and hedge risks.
Asset allocation also needs interval mutual support, with time guarantee and space preservation. In terms of time cycle, our traditional asset allocation in the past is simply short-term, medium-term and long-term asset allocation. In the face of the upcoming tax in the stage of real estate holding, such as real estate tax and even possible inheritance tax and gift tax in the future, this model will make us face the risk of shrinking real estate after the tax burden increases.
We need to consider four aspects at the same time:
First, thinking about the initial period of capital appreciation and wealth accumulation: how to invest? What is the security of funds? What is the profit of the market? What are our expectations for the market?
Second, I began to think during my retirement: is the quality of life for the elderly guaranteed? Will there be a risk of scarcity of old-age resources in the future? Will you face the risk of bear market in international and domestic markets after retirement? How to turn wealth into continuous income and provide high-quality life support for the rest of your life?
The third is to think during the wealth retention period: how to continuously maintain a high quality of life? How to protect wealth from diseases, accidental deaths, lawsuits, taxes and other factors?
Fourth, thinking during the period of wealth transfer and intergenerational inheritance: how can we inherit according to the will so that our wealth will not shrink?
Therefore, interval asset allocation and thinking about wealth management are to combine multi-agent interval and allocation, so as to build a safe new structure. In this way, our financial management will have the dilution effect of space. In the current new economic environment, it is particularly important to exchange time for security and space for preservation.
In the new tax planning era, the "tax exemption" plan in the property income stage and the "tax exemption" plan in the property holding stage are important tax planning in asset allocation and family wealth inheritance.
Be prepared for danger in times of peace and prepare for a rainy day. We will face new taxes in the stage of real estate holding, which will inevitably require us to change our traditional concepts and introduce new tax planning ideas. For tax authorities, taxation is mandatory, and taxation at different stages represents the adjustment function at different stages. But for high-net-worth taxpayers, tax cost has always been a comprehensive consideration in asset allocation and wealth inheritance.
Therefore, if we still follow the idea of "saving taxes" in the real estate holding stage, it will inevitably make us feel a lot of secondary taxes. Therefore, it is necessary to introduce the concept of "tax exemption" in the stage of property holding, so as to avoid the risk of wealth shrinkage or loss caused by tax burden and inherit wealth to the greatest extent in the process of intergenerational inheritance. In this regard, it is an ideal planning method to effectively and comprehensively use tools such as insurance, trust, insurance trust, international irrevocable life insurance trust and charitable foundation.
Tax-free planning of insurance in intergenerational inheritance
"Being rich for three generations" has always been a problem that puzzles many families. In terms of asset allocation, we have always advocated the allocation of maximizing investment income in the short-term, medium-term and long-term duration, such as combined parent fund, equity investment, real estate, annuity insurance and so on. However, in the process of family fortune's intergenerational inheritance, the lifelong planning behind it has become more and more important. With the deepening of tax reform, the revision of personal income tax law and the promulgation of real estate tax law, it indicates that there will be taxes in the stage of real estate holding in China, so another important tax in the stage of real estate holding will not be ruled out in the future: inheritance tax and gift tax.
The biggest impact of taxation on the inheritance of family fortune in the stage of property holding is that the wealth passed down from generation to generation will be greatly reduced by taxation, which is what we usually call the risk of wealth loss caused by taxation.
In this case, the advantages of life insurance in family wealth inheritance, especially in tax planning, are very obvious. However, people may not be genuinely interested in life insurance. I think, first of all, people always have the psychological trouble of getting tangible assets after consumption. As a contract, life insurance is essentially an intangible asset. Second, in essence, life insurance is a guarantee product for the insured's risk transfer. In the optimal asset allocation of the insured, it is the product of premium leverage to generate insurance amount, and it is also the product of beneficiary's guarantee of wealth inheritance. Its nature of guarantee, insurance coverage and preservation makes the insured have no interest income before his death, and often can't get actual returns before his death, thus ignoring that life insurance is an important bridge to deal with intergenerational inheritance. In addition, we often ignore an important design concept of life insurance, that is, the accumulation of cash value. Maybe we don't think cash value is practical.
However, it can't be ignored that it is the traditional life insurance whose accumulated cash value has been increasing with the passage of time, and its advantages in financial cost and tax cost have greatly surpassed any financial instruments and equity investment, especially in the process of intergenerational inheritance, and it has become an irreplaceable financial instrument.
In the past many years, high-net-worth people in China have a large number of real estate allocation, while more high-net-worth people often ignore the shrinking wealth caused by the tax risk of real estate in intergenerational inheritance. People often only care about: is the property passed down as a gift or as an inheritance?
To do a good job of intergenerational inheritance of wealth maximization, we need to start with tax planning. With the introduction of tax in the stage of real estate holding, it will directly affect the intergenerational inheritance of wealth of high net worth people.
From the taxpayer's point of view, imagine that all the funds we use to buy real estate come from the income source in the income stage, and we have already paid the income tax in the income stage. If the taxes in the holding stage of real estate, such as real estate tax and inheritance tax (gift tax) follow, it means that we will bear the taxes again in intergenerational inheritance. Our tax planning idea is: the tax planning goal in the income stage is tax saving, and the tax planning goal in the property holding stage is tax saving and tax exemption. If the idea of tax saving is still in the stage of property holding, it is not cost-effective.
Then, how to maximize tax planning in the stage of real estate holding, so as to achieve the purpose of tax exemption? In fact, it is to combine life insurance to solve the tax risk in wealth inheritance.
Generally speaking, in the concept of global tax system, when real estate is passed on to the next generation by way of gift, in countries with sound tax system, the accounting cost of children inheriting real estate is mostly the original cost of parents buying real estate. When we inherit real estate by inheritance, the accounting cost of a country with a sound tax system is the market value of the decedent at the time of his death. In this way, when the next generation sells the property again, its profit rate is obviously reduced, and the income tax is also obviously reduced. In the process of inheritance, a very important combination tool, life insurance, is a perfect combination. On the one hand, it can quickly provide a tax source for future inheritance tax payment, on the other hand, it can provide a source of income tax hedging for future real estate disposal, thus minimizing the risk of shrinking wealth in intergenerational inheritance.
Therefore, from the perspective of income tax, life insurance claims are exempt from personal income tax. Judging from the tax system in the property holding stage, the claim right of life insurance provides a tax source for paying the inheritance tax that may appear in the future, and also provides a tax source for the income tax that is resold after intergenerational inheritance. It is very important to choose the right life insurance, so that you can enter the tax-free process before your death and provide the insured with cash flow of wealth.
Therefore, we can say that insurance is the best tool for tax deferred tax exemption, the perfect combination of income deferred tax exemption and the best tool for tax exemption in intergenerational inheritance.
Various factors make it more necessary for high-net-worth people to formulate effective financial, tax and legal structure planning schemes than in the past, and use various financial tools to achieve the goals of family businesses, enterprises and foundations in the process of creating, maintaining and spreading wealth. For this reason, life insurance, annuity insurance, funds, creditor's rights, wills, trusts, equity investment, fixed assets investment and other tools have become the basic elements for modern families to improve their financial, tax and legal structures. Among them, insurance is a very valuable and flexible financial tool.
At the same time, insurance is not a short-term profit-seeking tool, but a tool for wealth substitution, patient capital, long-term investment, deep wealth dissemination, tax minimization and legal tax exemption.