International Tax Avoidance And Chinese Anti-avoidance

In recent years, along with the deepening international economic integration, the amount of tax increases, more and more a means of a new, more complex, which not only hindered the normal development of the world economy, the erosion of national tax revenue, but also to break The original normal trade order is a violation of the host country and the dignity of other taxpayers. And how to solve the use of international tax avoidance has become the focus of the study. China's accession to the WTO is faced with the same after tax impact of the proper use of foreign capital, to prevent accurate in the fight against international tax avoidance has become China's need to address an important topic.This article is divided into two parts. The first Festival discusses the causes of international tax avoidance. In addition to the multinational corporations that are subjective pursuit of profit maximization objective factors are also a number of foreign multinational companies to provide the necessary conditions: if the countries are different methods of taxation, the tax authorities in accordance with national conditions drawn up to avoid double taxation in different ways, and so on. Concluded that the tax multinational companies have their own development is an inevitable result of tax law at the same time countries in such areas as well as differences in the tax provides a good objective conditions.The second Festival discusses the main form of international tax avoidance. That the existing international tax avoidance in the form of the following six: 1, associated with the use of corporate profits tax rate from the high-low transfer rate of the country's national transfer pricing tax avoidance. 2, the use of tax concessions and tax environment to tax avoidance of tax avoidance. 3, through the increased use of credit (debt investments) and the reduction of share capital (the rights and interests of investment) way to increase the proportion of pre-tax deduction to reduce tax avoidance weaken the capital. 4, the use of national tax loopholes in the agreement of the tax deficiencies. 5, the emerging e-commerce tax avoidance. 6, by changing their own tax resident status. Concluded that several of the above-avoidance mode, some of the permanent tax, and some of the time difference is the use of the taxpayers, the tax deferred for the time being, however, does not mean that the tax can be ignored for the time being. It should be noted that amendments to the laws of the country has achieved a temporary tax does not have retroactive effect, may also be converted into permanent tax avoidance. So for the anti-tax avoidance must be multi-faceted, multi-level perspective.The third Festival discusses the impact of international tax avoidance and harm. International tax avoidance that has a positive side and negative risks. First of all, from the point of view of the world economy, the emergence of international tax havens distort the normal flow of international capital, has changed the national deficit and the trade surplus of meaning, to cover up the real trade relations, resources hampered the rational distribution of the world. Second, the emergence of international tax avoidance damaged the economic interests of the host country, weakening the national financial functions, making the host country in the development of international trade policy in a dilemma. Once again, the taxpayers, the tax break the emergence of a fair tax burden among taxpayers, contrary to the principle of fair taxation. Concluded that the tax is a "double-edged sword" countries in dealing with international tax issues must be carefully treated in stimulating national economic development should also pay attention to his own harm, it is necessary to strictly control and reduce the risk of tax .Chapter II discusses the two parts of our country at this stage of the anti-avoidance legislation and the work of anti-avoidance. And our country's anti-avoidance job now made a number of recommendationsThe first Festival discusses China's anti-tax avoidance legislation of the status quo. From that in 2008 China promulgated a series of laws and policies, we can see that China's legislation of its content has made some breakthrough in the light of international practice, the absorption of advanced foreign anti-avoidance experience, combined with China's actual conditions. Its contents, including a robust anti-avoidance in the area of transfer pricing, tax avoidance, controlled foreign companies, capital and so on but weakened in practice has also exposed some problems such as: low levels of legal, low-operability, a number of supporting Policy has not yet introduced, the concept of legal chaos, and so on. China's legislature concluded that although the content of the lessons on the international practice, combined with China's national conditions, but also the need for further refinement and improvement of certain provisions in some of the content of norms and would also like to be close.The second Festival discusses China's anti-avoidance practice and the lack of response measures. That our existing anti-avoidance work are still some problems, mainly in the departments of the anti-avoidance awareness of the work of non-uniform, not the tax authorities of the specialized agency for international tax avoidance, tax personnel of higher quality. Therefore, in addition to the tax authorities to strengthen the legislation would also strengthen the practice, mainly from the following aspects to strengthen anti-avoidance efforts: 1, it is necessary to speed up the pace of updating information. 2, it is necessary to strengthen tax collection and management. 3, to improve the quality of the tax. 4, set up business transactions related reporting system. 5, strengthen the tax on foreign-related enterprises inspectors. 6, strengthen international tax cooperation. Concluded that China's anti-avoidance practice is still our weak link in the anti-tax evasion, in the light of the developed countries are still disparities, the need to improve legislation to strengthen the continuous improvement of management practice, or re-close the legal policy is only a piece of paper .Anti-tax avoidance is a long way to go, we must uphold for a long time and constantly improve it, no country's tax system has loopholes, exceptions and deficiencies found only in the study, improve the practice of the process of To make up for insufficient to ensure the country's source of revenue. We must closely follow the economic development front, and constantly update their wealth of knowledge and experience, improve relevant systems, continuous training of high-quality tax professionals, and increase collection and management, and strengthen international co-operation, the maximum guarantee of the country's economic interests, for our country Protect the economic development.