Transfers The Fixed Price By The Chinese Government To The Multinational Corporation Instead To Avoid Taxes

Tax evading is an important factor which influents fiscal income of all countries, so anti-tax avoidance is always a main research topic. During past several years, more and more transnational corporations come to China. They brought us the development of national economy as well as the problems of tax evading and anti-tax avoidance. Transfer pricing is such a common thing that violates our country's tax profits and the fair competition. However, the complexity of the problem is that tax evading is relatively unobvious which is quite different from tax evasion. Meanwhile, the generality of tax evading makes legal punishment hard to be exerted for it may partly influence the inflow of foreign capitals. This essay emphasizes on how to strike a key on anti-tax avoidance and make it an effective way to restrain the transfer pricing and reduce the loss of fiscal income.The whole essay mainly includes five parts.The first part expounds a theory on the relationship between transnational corporations and international tax evading.The second part introduces the progress of transfer pricing theory. The present research tendency mainly lies in the application of the principle of"Substance over Form"as well as reverse anti-tax avoidance.The third part analyzes the anti-tax avoidance work of transnational corporations start relatively late and it is not balancing among different areas in our country. At the present, the foreign investment companies which are established in China by foreign companies are the main force of the transfer pricing. Thus, this work should be carried on in depth.The fourth part compares the advanced method being adopted by other countries. Their experiences are worth learning.The last part gives some relative opinions and suggestions. First, the perfection of legislation is the key word of anti-tax avoidance work. Secondly, we should improve relative working system on the basis of daily levy and management. Meanwhile, we should bring anti-tax avoidance work in the information construction.The creativeness of the essay is that the transfer pricing anti-tax avoidance is a difficult topic in international tax. The author selects this topic to explore and research and gives her own suggestions on it.The perfection of legislation is the key word of anti-tax avoidance work. Since all the anti-tax avoidance work of our country rely on the two regulations published in 1998 and 2004, which are not the law yet, the anti-tax avoidance lacks the persuasiveness. Therefore, we must renew the regulations from time to time.The essay emphasizes that anti-tax avoidance work should be based on the daily work to increase the quality of the selection of tax evading case The essay pays close attention to the problems which are urgently needed to be solved and this is just where the uniqueness of this essay lies.