The Analyse Of Theoretical Basis And Legislation Improving Of Advance Pricing Agreement

At the age of fast development, world economic became more and more globalization. It brings the corporation and communication between companies in the worldwide. The world is facing unprecedented competition and opportunities. The different areas in the different country always have the different tax rate to encourage investment and economic development. The different tax rate gives the enterprise groups the opportunity to transfer pricing and avoid taxation.Enterprise Group play very important role in competition and at the same time they are the main force to do transfer pricing to avoid taxation. The main reason for this is the enterprise group earns more profit, pay more taxes and have ability to transfer profit from one subsidiary to another. The enterprise group transfer profit and revises the financial statements, transfer funds and profits of listed companies to avoid pay tax. Transfer pricing leads to the serious loss of government revenue. This issue is to analysis the transfer pricing and advance pricing agreement. And then try to give some legal advice to perfect the legal system. The thesis is composed of three parts: preface, 4 chapters and conclusion.Chapter 1 Cite a case to show the transfer pricing phenomenon and advance pricing agreement. Pay more attention to the concept and classification of advance pricing agreement.Chapter 2 To analysis the legal theoretical basis of advance pricing agreement. Introduce the relationship between advance pricing agreement and tax law. It is a contract between government and enterpriseChapter 3 Introduce other countries experience in advance pricing and China's laws and regulations about it. Use a mathematical model to analysis the profit between government and enterprise. Why to sign an advance pricing agreement and what profit can get from it. Reference the advanced experience in America, Japan and England.Chapter 4 To analysis the advantages and disadvantages of advance pricing agreement in China. Based on the research and compares ion with other countries to give some advices in legal system improving and organization perfecting.