The Study On Our Nation's International Counter Tax Avoidance

As the continual expansion of the business among the associated enterprises both in scale and speed, the pricing mechanism, especially, the transfer pricing has become the most attractive tools in their tax avoidance planning. This therefore, brings in enormous impact on our revenue collection. This article makes a general theoretical analysis on international counter tax avoidance from three aspects:the definition of related enterprises, the distinction of international tax avoidance and present status of international tax avoidance. Also, it introduces the counter tax avoidance practice in the U.S.A., Japan, Great Britain and Germany, elaborates the current situation of international tax avoidance and counter tax avoidance in China and analyses the existing problems and cause in our nation's international counter tax avoidance approach. Finally, it puts forwards the countermeasures and advices in strengthening our efforts on international counter tax avoidance from five levels, which are the establishment of effective counter tax avoidance mechanism, intensified supervision of related parties, positive and sound tax administration on transfer pricing, firm introduction of Advance Pricing Agreement and proper treatment of tax relation between Taiwan and the mainland.