The Study Of International Tax Legislatures Regarding Tax Heaven

The issue of tax heaven has been globally brought to many countries' attention since World War II. Particularly, since 1960's, western countries, headed by USA, have written tax laws to combat tax avoidance schemes involved with tax heaven and built up their relatively independent tax law systems for the issue of international tax heaven.Comparatively, the issue of tax heaven just emerges in China, as investments for tax heaven increase, foreign investments report more and more losses, and investments from tax heaven countries and areas to China increase in significant amount while China does not have systematic legislatures to deal with the issue of tax heaven. All available information indicates that although there have been many studies of the legislatures of international tax done by Chinese scholars, there were few studies of international tax involved with tax heaven. Therefore, the writer of this essay explores the practical legal solutions to the issue of tax heaven by using the method of comparative analysis based on the research of large amount of information.The essay is developed from the following four aspects: At first, explores the definitions, types, and functions of tax heaven and reveals the process of tax avoidance scheme involved with tax heaven by analyzing the ways that were used. Secondly, summarizes experience and practice of tax-heaven-legislatures done by the countries represented by USA and British. Thirdly, demonstrates the negative impact on China's tax system by the analyzing how both domestic and foreign enterprises to use tax heaven to avoid taxes. Finally, from the experience of international tax-heaven-legislatures, proposes main principles and directions China should follow to build up its tax-heaven-legislatures on the basis of introduction of the process of China's tax-heaven-legislatures and its weakness.