The Research On International Tax Avoidance And Prevention Based On The Transfer Of Object

With the development of economic globalization, multinational companies havebecome major economic carrier of international trade. Currently,, there are more than350,000 multinational companies and their worldwide hundreds of thousands ofsubsidiaries and subsidiary undertakings. In order to maximize profit ,multinationalcompanies are through various means to avoid international tax. On the one hand,development of transnational corporations is to promote global economic integrationand development, and the other hand, the international distribution of tax rights andinterests are gradually acute. In order to safeguard national sovereignty and taxbenefits, and tax revenue distribution relations between the state's , international taxavoidance of the multinational companies are gradually aroused the concern andattention of Governments, the Governments have adopted international tax avoidanceand prevention measures to regulate multinational companies international taxavoidance.In order to achieve international tax avoidance, Circumvent the purpose of the taxburden, there can be roughly two means to carry out international tax avoidancethrough transfer of the taxable entity and the transfer of the object of assessment toreduce the tax burden. Through transfer taxation main way to achieve internationaltax avoidance, refers to the use of cross-border flow of taxpayers' trying to avoidbecoming a legal resident taxpayers identity of any one country, in order to avoidresponsibility for resident taxpayers should bear the unlimited tax liability. Throughthe tax object of transfer, including the object of labor, cost of capital, commoditiesand other elements between countries. Transfer taxable objects from high-taxcountries to low tax countries transfer is to change the source of income, to avoidhigh-tax burden. The scope of this study is based on the transfer of taxable objects ofinternational tax avoidance and its international tax avoidance prevention methods,systems are classified according to the object clues transfer, multinationalinternational tax avoidance has a comprehensive analysis of each object to the transfermechanism of the international tax avoidance and prevention methods.This article is intended by way of transnational corporations using the object transfer mechanism of international tax avoidance, to get the summary of each objectto the transfer of the prevention of international tax avoidance, its advantages anddisadvantages of analysis. In order to prevent multinational companies internationaltax avoidance can learn from the regularity of the theoretical and practical experience.Basing on the actual conditions in China, to find suitable for China's international taxavoidance and prevention methods, further improve China's international taxavoidance and prevention legislation, the collection of management and other aspectsof the work, to maximize the preventive effect of international tax avoidance.For the definition of the concept of international tax avoidance, this paperintroduces the definition of the concept of "formula to define the concept ofinternational tax avoidance, start from the" definition of the concept of "formula,International tax avoidance "close to the case of the concept of" tax avoidance ","species gap "is related to the tax jurisdiction is more than only one country, but to thetwo or more countries. In accordance with the formula of the "definition of theconcept of" defined "international tax avoidance" refers to the taxpayers in order tocircumvent or reduce the tax liability purposes, the use of two or more national taxloopholes, involving two or more state tax revenue the jurisdiction of a cross bordertax avoidance in the form of tax.For the definition of the nature of international tax avoidance, is the startingpoint of the position of the international tax avoidance and prevention. Qualitativelyfrom the legal point of view to analyze the nature of the international tax avoidance,summed up the three perspectives in theoretical circles as defined by the nature ofinternational tax avoidance, that is legitimate to say, off the law, illegal. The paperfollows the principle of "substance over form", that the multinational companiesinternational tax avoidance is based on the surface of legitimate acts conceal illegalcommercial purposes, resulting in the negative consequences of illegal acts against thestate's tax interests. This article identified prevention methods as the legal nature ofinternational tax avoidance tend to "illegal", which determine the position of theprevention of international tax avoidance, which upholds the prevention, regulation ofinternational tax avoidance of multinational companies to prevent the position of thetransfer of international tax avoidance as the object research base.This article based on the analysis of international tax avoidance, based on theperspective of the object transfer, multinational international tax avoidancesummarized as the following four: Transfer pricing of international tax avoidance, The illegal use of international tax havens, Avoidance of abuse of international taxagreements, The thin capitalization tax avoidance.Thus a comprehensive, in-depthanalysis of the four international tax avoidance mechanism and prevention methods toprevent the contents of the international tax avoidance schemes, the advantages anddisadvantages are reviewed.International tax avoidance and prevention of problems for transfer pricing,specific analysis of the purchase and sale of intangible assets, business transactions,labor exchange services, financing business transfer pricing tax avoidance mechanism.Resolve the plight of the transfer pricing of international tax avoidance after theadjustment mode, and thus leads to the transfer pricing of international tax avoidanceprior to the adjustment mode - booking pricing system; from the three perspectives ofhistorical, economic, institutional analysis of the factors of international tax havens toanalyze problems of International tax havens, tax avoidance and prevention. Basecompanies, property trusts have the characteristics of the virtual, non-commercialpurposes, as an international tax havens, tax avoidance an important basis of thevector from the domestic legislation and the signing of the two aspects ofinternational tax agreements to effective regulation of transnational taxpayers use ofinternational tax avoidance and tax avoidance.For abuse of the international tax treatyavoidance and prevention of problems. Cross-taxpayer's abuse of international taxagreements subjective move out of the pursuit of the purpose of maximizingprofits.State party to enjoy preferential tax policies for multinational taxpayers is thedriving force of abuse of international tax agreements and possible conditions for theinternationalization of capital flows between multinational taxpayer abuse ofinternational tax agreements. Analyze "Conduit company", "foot stone", "low equityfirm three abuse of the international tax avoidance agreement mechanism. Summedup the general types of multinational taxpayer abuse of international tax agreements,advanced type and special type of key analytical principle of "substance over form"and the concept of "income all practice in the prevention of guard against the abuse ofinternational tax havens to avoid tax. For thin capitalization of international taxavoidance and prevention of problems. Tax baffle effect in the thin capitalization, isto promote cross-border taxpayers to artificially determine the capital structure byincreasing the proportion of debt capital, to circumvent the tax burden.The thincapitalization international tax avoidance behavior of transnational taxpayer, selectthe fixed ratio method and the normal exchange act to prevent multinational taxpayers' thin capitalization tax avoidance.But on the view of the certainty of a fixedratio method and any contradictions, the flexibility of the normal Exchange Act ofcontradiction and uncertainty, this paper presents two kinds of regulation ofinternational tax avoidance schemes used in conjunction, make normal exchange actas an extension of the fixed ratio method to use, when the multinational taxpayers usefixed-ratio method to determine the existence of thin capitalization of international taxavoidance.Examine cross-border taxpayers to accept the level of interest paid on debtcapital is in line with market transaction price and then use the normal method oftrading, such as the actual financing of the transaction price and the normaltransaction price deviates from its take regulatory measures.Explore the basis of object transfer as a means of international tax avoidance andprevention methods, the paper examines the face of multinational companies in thecountry's international tax avoidance, make objective describing in China's currentdomestic legislation on international tax avoidance and signing of the status quo ofinternational tax agreements.There is a deviation to prevent the practice of a late startdue to China's international tax avoidance, the guiding ideology of the internationaltax avoidance and prevention, to prevent the object is limited in scope to preventlegislative level lower, to prevent the operating rules are still irregularities, not toprevent the efficiency of management. Combined with China's actual conditions,select the appropriate tax avoidance features, collection and management level ofvarious international tax avoidance schemes, from the guiding ideology - theemphasis on the need for international tax avoidance prevention of domesticlegislation - to improve the international tax avoidance to prevent tax,the signing ofinternational tax agreements - to strengthen tax information exchange, preventionmanagement - to improve the efficiency of international tax avoidance and preventionwork,the prevention supervision - the five dimensions of the norms of internationaltax audit behavior to improve the international tax avoidance and prevention system.