On Abuse Of International Tax Agreement

Abuse of tax agreement (also called abuse of international tax agreement), is the taxpayer make use of the leak, special example and bugs in the international tax convention to avoid tax. It is a way in common use to avoid tax in international taxation fields. The negative factors caused by it have already given rise to the extensive attention of international society. This article describes the implication, approaches (establish direct conduit companies, stepping stone conduit companies and low-dividend controlling companies) and dangers of abusing international tax agreement. It distinguished the abuse of international tax agreement from the general avoiding tax ways. It posted abusing international taxation brought about many negative infections on international economy and Chinese economy.Then it centralized expounding concretely measures on how to keep away avoiding international taxation .For example, to strengthen the keeping away ability of taxation convention itself; using the rules of inner tax law; building up the exchanging system of international taxation intelligence. During studying the anti-abusing international taxation measures of other countries, it expects to pay much more attention to exploring anti-abuse international taxation convention and study it in legal way.