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International Tax Avoidance And Offshore Companies Of The Financial Crisis Era. Research

Posted on:2012-05-18Degree:MasterType:Thesis
Country:ChinaCandidate:H L LiangFull Text:PDF
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World economy was in a mantle of haze in 2008, the worldwide financial shock was resulted from subprime mortgage crisis of America, A lot of scholars are looking for the reasons of this crisis, and they put their eyes on the Tax Havens. On the other hand, although Tax Havens are obviously not the source of the financial crisis, fifty Tax Havens around the world are deemed to one of the factors which caused the financial system volatile. Under the background of the economic globalization, transnational investors apply the differences in tax rate, especially the favorable tax policies of offshore areas, to avoid international tax in order to obtain the global maximize profits, which results in abnormal flow of international capital and serious erosion of the relevant states'tax base.There are many methods of international tax avoidance, mainly including transfer pricing, thin capitalization, tax treaty abuse, exploiting the loopholes of management of taxation and so on, taking which in the form of offshore companies influencing the international economical society most. Multinational investors comprehensively apply the offshore companies established in tax havens in international trade, international finance, international investment and international taxation etc. The offshore companies are not only providing experiences for investors from the world engaging in multinational transactions and producing huge economic profits, but also challenging the laws and regulations of finance, investment, taxation, foreign exchange and so forth in the domicile and place of business of the companies. This article objected in international tax evasion of offshore companies, by analyzing the rules in international anti-tax-evasion and anti-Harmful Tax Competition of each developed country and international organizations under the background of financial crisis, combining with the status quo of legislation of international tax evasion of offshore companies of our country, putting forward some suggestions to establish and consummate relevant legal system.The paper is divided into four parts to illustrate the legal problems of tax evasion of offshore companies and countermeasures to manage it. The first part begins with the influence on the tax havens of financial crisis, briefly introducing the attitude of each country on tax havens to cope with financial crisis, and analyzes the basic theory and specific modalities of international tax evasion of offshore companies. The second part carries on with the first part to introduce relevant rules of international tax evasion of offshore companies of foreign countries, taking America and Japan for examples. The third part analyses the international rules from the respective of international law, first introduces the situation of bilateral international cooperation, mainly introducing information exchange and taxation assistance two methods, then introduces OECD's report of Harmful Tax Competition and its progress of implement, throughout the point is that managing international tax evasion of offshore companies relies on international cooperation. The last part starts with the status quo of the legislation of international tax evasion of offshore companies, analyzing problems subsisting in our present legislation, using for reference of the effective measures and successful experience of advanced countries and international organization in taxation, comes up with specific measures to prefect our legislation of managing international tax evasion of offshore companies.
Keywords/Search Tags:Off-shore Company, International Tax Avoidance, Controlled Foreign Company, Transfer Pricing
PDF Full Text Request
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