The Study On The Multinational Taxation Evading By Using Transfer Pricing

The multinational's legal tax avoidance has important impact to improve its global competitive power and investing strategy. The multinational's trade price among their inside business-The transfer price, as one of the legal means to evade tax, more and more obtains the focus of the multinational managers.This thesis first analyzes the problem of the international tax avoidance, separately expounding its evolving causes, its consequence and its methods, meanwhile pointing out that carrying the work is not only possible, but also has bright prospects. The proposition of this question is in order to draw the transfer price question, because the transfer price is one main method to evade tax; Secondly it offers the rational basis for research of the transfer price, only when the avoiding tax is rational and feasible, then the transfer price deserves our concern.Continuously this text casts sight on the transfer price naturally. The concrete questions include the causes of producing transfer price, its influenced facts, the method to make transfer price concrete questions, its impact to tax revenue, the mathematics model of evading tax; its main ways to influence the cost and profit. On the foundation of the theory analyzing, the text further researches the current situation of using transfer price in our country, combining the mathematics models to make a concrete analysis of our tax avoiding practices. It proposes the outstanding problems during practice, namely how we make over price control, how our transnational enterprises face the supervising of the tax authority.This part is the focal point. It points out that the transfer practice is the inevitable outcome inside the trans-corporation. The tax factor among which determine the transfer price is essential when making policy. The text also analyzes our multinationals' transfer practice applying the mathematics model. In addition, this thesis not merely studies the shift price from the angle of the enterprises, also shifting the angle, from the tax authority offers one view of "balance" when making price: Namely because of complicate influenced factors, the enterprises must balance the relationship between them and tax authorities in utilizing the transfer price.At last, this text puts forward the view by analyzing the impact of e-business on the tax and transfer price: tax evading and transfer price would be widely used in the future; they would not die away by itself for the governments' strictly controlling. The question confirmed the beginning part of the thesis and it also proved from another side that the question of the transfer price is worth our studying and probing deeply.The external multinationals have regarded transfer price as habitual practice of tax evading today, but our transnational enterprises are still in the primary stage in understanding It, so the situation has undoubtedly influenced the international competitiveness of our transnational enterprise. With our country's transnational constant developing, we should accelerate studying the restrict factors that our transnational enterprises can't use the transfer price effectively and find out the effective way of using the transfer price rationally.