Study On Tax Law System Of Controlled Foreign Company

As the more frequent international capital flow between different countries as well as the existence of international taxation competition, tax revenue planning is growing more and more popular when multinational companies are developing economical activities. And one of the important means is to construct controlled foreign companies in tax havens to defer the tax.In order to regulate the tax avoidance action, America established CFC (the short for controlled foreign company) legislation firstly. Then, many other countries started to follow it and constructed the CFC legislation in their own countries.Enterprise Income Tax Law of the People's Republic of China made in 2007 by China has also referred to the controlled foreign company, however, it is only a frame of provisions without enough feasibility in detail.This thesis comparatively studies the CFC legislation by analyzing, comparing, inducing and summarizing, and puts forward suggestions on how to improve the CFC legislation of china by learning the experience from the CFC legislation of other countries. It consists of three parts:The first Chapter will introduce the general situation of CFC legislation, including the economical and law background, objective and theoretical foundation, and concludes five constitutive legislation elements which is necessary to be instituted strictly in the CFC legislation on the basis of the theoretical foundation.On the basis of the five legislation elements concluded from Chapter I, which are judgment criteria for being controlled, affirming methods of tax haven, affirming methods of taxable income, exemption clause and the regulations of avoiding double taxation, Chapter II will analyze the advantages and disadvantages of all kinds of different provisions together with the causes by comparing lengthwise the various provisions of the CFC legislation in relative countries.Combined with the previous researches, economical background and present legislation in China, Chapter III will put forward a suggestion about how to improve the five legislation elements besides other relative important items on the CFC legislation in China by learning the legislation experience from other countries together with the particular situation in China.