Multinational Tax Avoidance Methods And Learn

Transnational Corporation, in other words, Multinational Enterprises Multinational Corporation or Global Enterprises, is an economic organization in special form. It is in composed of several entities from different countries in economics; however, Transnational Corporation is not a legal entity since it is built on base of different laws and has different nationalities. Unlike domestic companies, Transnational Corporation has some characteristics of which relevance is the typical one. The relevance of Transnational Corporation can bring convenience for Tax Avoidance and get extra profits.Entering WTO, our country will supply better investment surroundings and more entrance chance for other trade partners by trade principle. As the results of globalization, Transnational Corporation plays a critical role in world economy. Nowadays, we have more and more investors, and they will use all kinds of method to avoid tax. According to the record of Ministry of Commerce, there have been 508941 foreign investment enterprises till December 2004, however, 60% of them are to the bad. Experts on taxation point out that most enterprises in bad condition show that on purpose, and transfer price is an important way to make that aim. Reportly, more than 30 billion are lost due to tax avoidance of Transnational Corporation. Therefore, it is necessary to study tax avoidance and Tax Evasion in order to find proper ways to solve the problems.Beginning with the concept and reason of tax avoidance, this article analyses the main methods to avoid tax of Transnational Corporation, then it introduces some counter method of tax avoidance and valued experiences. At last, from the open-up policy and economy development need, this article gives some pieces of advice in order to keep balance between economy development and tax revenue.