This article discusses the nature of tax avoidance and the most important concepts connected to tax avoidance, before going into detailed discussions on the legislation and cases, and their underlying principles, relevant to anti-tax-avoidance, mainly in New Zealand, but also other jurisdictions. The focuses are on how the courts developed rules and interpreted the statutory provisions regarding anti-avoidance, and the implications. Proposals are made for the improvements of anti-tax-avoidance in China, based on the above analyses and the discussions on the status quo of legislation and practice on tax-avoidance and anti-avoidance in China.