Research On Existing Problems And Countermeasure Of Anti-avoidance In China

Tax avoidance and anti-avoidance are the world's common problems. With the deepening of reform and opening up, especially after China's entry into WTO, international and internal tax avoidance start to influence and infiltrate each other and have the tendency to spread and develop. According to the lowest estimates, the annual losses of tax in terms of transferring price for tax avoidance of foreign investment enterprises are up to 30 billion yuan. Chinese government has already had a full realization of the necessity and urgency to put a stop to tax avoidance. The State Administration of Taxation of the People's Republic of China issued a series of laws and regulations to counter the action of transferring price taken by multinational enterprises for tax avoidance. Successful to some extent, tax anti-avoidance, with many problems to be solved, is still a vulnerable segment in China. Through theoretical and exemplary analysis, this paper does an exploratory study aiming at the development and improvement of our nation's tax anti-avoidance.Firstly, this paper briefly deals with the theory of tax avoidance and anti-avoidance, compares tax avoidance with some other easily misunderstood concepts, analyses the formation mechanism of tax avoidance, and thus regards tax avoidance as an action which is not illegal but violates the legislative spirit and consequently should be wiped out by the government. To clarify the definition of tax avoidances is the basis of the research into tax anti-avoidance.Secondly, through a brief introduction to the historical development of tax avoidance and anti-avoidance, it presents the current situation of tax anti-avoidance in China and explores the causes of existing problems.Thirdly, it does a detailed study on the experiences and development of tax anti-avoidance in the developed countries worldwide. Drawing on the practical insights from these countries helps to avoid detours and lay sound foundations to the last chapter of this paper.Finally, it puts forward practical suggestions for anti-avoidance in terms of tax legislation, tax reform, the improvement of tax collecting methods, and specific measures. They are intended to offer guidance to the practice of tax anti-avoidance.