Abstract: [Abstract] We have yielded fruitful accomplishment and have achieved the major breakthrough in macro tax system reform since our implementing “BT to VAT” from 2012. According to the current accounting treatment, VAT is not involved in revenues and expenses as the result of VAT excluding from product price, then VAT is “unrelated” to the formatting of enterprise’s profit, and do not affect the earnings after the completion of “BT to VAT”. Therefore, there is no accounting information of VAT. If the reformation of BT to VAT is so effective, will accounting information qualities dramatic increase after BT to VAT? Based on the empirical study, this paper confirmed that VAT as the same as BT could significantly affect the corporate earnings. But as the result of VAT not including in Income Statement, company managers could get more invisible tax planning opportunities. Otherwise, this paper didn’t discover BT’s statistic sign of tax planning because of BT as the part of Income Statement. Therefore, this article strongly recommended that VAT should be expensing into Income Statement, which would be favor of the supervising of tax administration and constrain corporate managers from tax planning to truly report company earnings. Meanwhile, this paper also proved if one person were both president and CEO in corporate governance structure, he would obviously affect the cash flow of VAT and BT, which should be the orientation of optimization in corporate governance.