After the Second World War, as international commercial relations have become closer and more extensive, the number of Multinational Corporations is increasing quickly. Multinational Corporations ' financial income is becoming worldly. As tax rate and tax burdens are becoming higher and higher in many countries, the behavior of International Tax Avoidance and tax evasion have become seriously. Because Multinational Corporations ' behavior of Tax Evasion is regarded as illegal in many countries, it will be punished by the government, and the Multinational Corporations have recognized the serious results of Tax Evasion , they seek Tax Avoidance as a good measure to reduce their tax liability.International Tax Avoidance is the reduction of tax liability through the movement or non-movement of persons or funds across tax boundaries by legal methods. That is they reduce their tax burdens by using some loopholes of Tax Treaty or Tax Laws.Multinational Corporations have both internal and outside reasons to reduce their Tax Burdens. The internal reason is that every Multinational Corporation wants to reduce or exempt their tax liabilities to maximum their profit. The outside reason is the different tax systems in different countries. Such as the different laws of tax liability in different countries; the different tax rate and different extent of tax levy in different countries; and the different ways to avoid International Double Taxation in different countries. All the reasons make International Tax Avoidance possible.The traditional ways of International Tax Avoidance are as follows: 1, Movement of tax payers; 2, Movement of funds, goods, or services, it includes Transfer Pricing, using Tax Heavens, and Thin Capitalization, 3,Abuse of Tax Treaty.More and more countries such as the USA, the UK, Canada, Japan and China are taking steps to against Tax Avoidance, because it reduces one country' s financial income, and it is unfair to other corporations,There are many ways to Anti-Avoidance, such as Anti-Avoidance Legislation, collaboration between governments, Anti-Transfer Pricing, Anti-Movements of individuals and orporations, etc.In this article, on basis of theories of International Tax Avoidance and Anti-Avoidance, the author has thoroughly studied the actions of Avoidance and the measures of Anti-Avoidance. Firstly, revealing the Multinational Corporation' s internal essence and ways of Avoidance by analyzing the reasons, kinds and results of Avoidance. Secondly, discussing the-validity of International Anti-Avoidance through the contrast research of some countries' measures of Anti-Avoidance. Based on the analyzing of the ways of Multinational Corporations Avoidance and the validity of Anti-Avoidance, the author has studied the problems of Anti-Avoidance in our country, and give the measures of Anti-Avoidance that can be applied in our country.Based on comprehensive survey data, the author follows the principle of combining universality and speciality and tries to make the conclusion efficient and convincible. The conclusions of the research will give the theory support for our Anti-Avoidance work and decision-makings. So it is very useful to promote the application and development of anti-avoidance in our country.
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