Research On Legal Problems Of International Tax Treaty Shopping

International tax treaty is a kind of agreement which avoids double taxation of earning and capital. It has played an important part in promotion of development of international economic. Nevertheless, it is facing many challenges in the globalization of economy. Tax avoidance through international tax treaty has become a subject of intense topic in the international community. Multinational corporations are currently able to take advantage of tax exemptions contained in tax treaties, though the countries that have joined the treaties never intended for them to benefit from such provisions. Many nations view this practice as tax treaty shopping.As a newly-emerged method of tax avoidance, international tax treaty shopping fails to comply with the basic aim of international taxation law and does harm to the source of the country's benefits from tax. Intergovernmental organizations like the Organization for Economic Cooperation and Development (OECD) and the United Nations (U.N.) developed official commentaries on the topic. In addition, many countries, such as the United States, would like to insert anti-treaty-shopping clauses into their model treaty and domestic law or give the general clause for control of the act like Netherlands.China is the bigger developing country which is on the way to open and reform. In order to obtain more foreign capitals, the favorable advantages will be provided in the tax treaty, so it is easy for the resident from a third party to be made use of. Due to lack of experience of combating treaty shopping, together with its complexity and secret, it's hard to deal with, the measures against tax avoidance must be improved.This thesis wholly analyzes and deep studies the legal problems of international tax treaty shopping, it consists of four chapters. Chapterâ… is the summarization of international tax treaty. The author expounds definition, legal signs, sort, content and legal effect in order to lay a solid foundation for the whole thesis. Chapterâ…¡provides the fundamental theories of international tax treaty shopping, such as international tax avoidance, the definition and the legal nature of treaty shopping. Chapterâ…¢reviews the available international and domestic legal countermeasures to treaty shopping, and the relation of the two measures. Chapterâ…£points out the shortcoming of the international and domestic legal countermeasures to treaty shopping in China, so as to put forward the effective and instructive measures for establishment and improvement of law system.