Several Legal Issues On Foreign Tax Avoidance And Anti-tax-avoidance In Our Country

At present, the problem of tax avoidance is becoming more serious in our country, with the rapid development of economic globalization and our country's economy. We need to further perfect and improve the legislation and justice practice of anti-tax-avoidance in our country. This thesis, which divides into three chapters altogether, mainly probes into the legal regulation question concerning foreign affairs of anti-tax-avoidance in our country.The first chapter of this thesis mainly describes the basic conception and cause of formation about tax avoidance and foreign affairs of anti-tax-avoidance. At present, there is not a unified concept of tax avoidance in the academia. This thesis synthetically analyses the academia's different explanations on tax avoidance, compares tax avoidance with tax evasion and tax saving, draws the following conclusions. Tax avoidance is that taxpayer utilizes loophole or ambiguity of tax law, tax system discrepancy of different countries and the inconsistentness of international tax relation to achieve the goal of reducing tax liability through legal means. Tax avoidance action has broad sense and narrow sense. The broad sense not only includes that taxpayer utilizes loophole or ambiguity of tax law to reduce his tax liability, but also tax saving action. However, the narrow sense only means the former. Persons of tax avoidance include all taxpayers, such as enterprise, other economic organizations, natural person. The targets of tax avoidance include all kinds of tax that taxpayers should be paid according to tax law, such as circulation tax, income tax, property tax, etc. Anti-tax-avoidance is to levy tax according to tax law principles like substance over form. Foreign tax avoidance is a tax avoidance action that foreign investor undertakes in host country or certain country taxpayer's tax avoidance involving in the taxation sovereignty of two countries or more than two countries. In our country, the means of foreign tax avoidance adopted by taxpayers not merely include transfer pricing, thin capitalization used commonly by transnational taxpayer in the world, but also utilizing our country's tax law loophole such as delaying profit-making year to avoid tax, and there is a characteristic of reverse tax avoidance. For among the persons of tax avoidance, it is foreign-invested enterprises that cause the tax revenue loss of our country to be most serious, main objects of research of this thesis are tax avoidance and anti-tax-avoidance of foreign-invested enterprises, also referring to a fraction of other persons of tax avoidance. The cause of formation that taxpayer avoid tax has subjective and objective respects .Subjective reason is that taxpayer is driven by profit maximum, and that objective is tax system loophole, differences of the tax system of different countries and incongruity of international taxation relation.The second chapter of the thesis makes a concrete analysis of the action mode of foreign tax avoidance, presents some current methods of tax taxation in the world, such as transfer pricing ,thin capitalization , abusing taxation agreement, tax avoidance in tax haven. Transfer pricing is inside transaction pricing that happens among the inside departments of company or associated enterprises which offer products, labor service, or the property each other. For there is very great random in its pricing method ,they make use of the differences of different countries and regions in tax systems to arrange transfer price, reduce tax liability, so as to achieve the purpose of global profit maximum. Thin capitalization is that enterprise investors reduce the proportion of the capital stock, improve the amount of the loan when they invest capital in an enterprise. Because loan interest can be deducted before income tax, but dividend is not allowed, adopting above-mentioned methods can increase the deducted interest, reduce tax liability. Abusing taxation agreement means that taxpayers make use of taxation agreement that the third country signs with other country to en...