The Research Of International Tax Avoidance And International Anti-Tax Avoidance

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 or Tax burdens by using some loopholes of Tax Treaty or Tax Laws. It not only does harm to the taxation of the nations involved but also causes chaos to the order of international capital circulation. With the globalization of world economy and the rapid expansion of multinational enterprises, ITA has been found to be used in more and more ways and to be actived in larger and larger scales. The battle between ITA and anti-ITA has become the World War in economic field .It has also become a common topic which national and international researchers of tax and law are working on.The typical ITA methods used by multinational tax payers are the Transfer Pricing (TP), Tax Haven and the Abuse of Tax Treaty (ATT ) . From theories, TTA& anti-ITA has become one main topic in the area of International Tax Law. The current transfer pricing taxation rule used by most nations is so called "normal transaction rule" . It is used to regulate the transfer pricing activities. But the rules are applicable only in a small number of cases and difficult to apply in practice. In the mean time, with the Tax Paradises having been founded, many multinational enterprises use them to avoid Taxes on Income. Many countries also strongly opposite that their taxes found multinational enterprises on the Tax Paradises. Governmental actions have effectively taken the ITA activities into normal. But the ITA activities are still not completely eliminated. China has established its own anti-Tax avoidance laws system. But there are still problems in the system. The research on tax avoidance approaches will be valuable in decreasing tax lost and establishing a fair market.This article first systematically analyzes the characteristics and motivations of anti-ITA regulations and then summaries the commonly used in ITA methods and their respective consequences. This paper also compares different anti-ITA approaches used by other countries with emphasis on countermeasure to the typical abuse of tax treaty. Based on the current status and the legislation practice of anti-ITA regulation in China and existed western regulations on anti-ITA. We propose some suggestions to solve the problem by legislation to enhance the government's ability of anti-ITA.