Research On Anti-Tax Avoidance Of Transfer Pricing Within Transnational Corporations

With the further development of economic integration of the world, the transnational corporations is becoming the protagonist of economic globalization gradually. In recent years, the transnational corporations generally evade the tax revenue through transfer pricing between affiliated enterprises. This trend is popular in the world and growing in intensity. With the new Enterprise Income Tax Law of P.R.C issued currently, it is a key task to study the transfer pricing system and strengthen the ability of anti-avoidance for Chinese tax authority.On the basis of review of relevant literature on transfer pricing and study of transfer pricing system of OECD or U.S.A., this paper analyzes the problems existing in our current transfer pricing law system and tax administration practice through a transfer pricing Case of X Company, and then put forwards the corresponding suggestions to complete the transfer pricing system in China.