| International tax avoidance is the practice that multinational tax payers use the differences, loopholes, special cases and flaws of two or more countries' taxation codes and their agreements to avoid or mitigate their tax responsibilities. International tax avoidance invades two or more countries tax jurisdictions. It is more complicated than domestic tax avoidance. This practice not only infringe on related countries' taxation rights, but also has the negative impact on taxation fairness between countries and tax payers.With deepening reform of our economy, our country is becoming the one that attracts Foreign Direct Investment the most. Multinational tax payers utilize all kinds of tax planning to mitigate international taxes, Such international tax avoidance damages the stability of our country economy, encroaches our taxation incomes, and has a negative impact on our investment environment. The main schemes of international tax avoidance include price transferring,offshore tax havens, capital weakening, taking advantage of favorable taxation, etc. Among which, price transferring between countries to avoid tax is commonly used by transnational tax payers.This thesis mainly discusses the problems of international tax avoidance and countermeasures that our country is facing. This paper introduces strategies that have been used to counter international tax avoidance and reports the steps that China has taken in recent years. Taking consideration of the implement of APA, this paper analyses the current situation of international tax avoidance and countermeasures, discusses the problems in countering international tax avoidance, explores the foreign successful anti-tax avoidance strategies, and provides useful suggestions in implementing those strategies. This article has realistic meaning in solving the problems in international tax management, perfecting our laws and regulations, and helping the creation of a fair social and investment environment. |
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