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Study On International Tax Avoidance Model Of Offshore Company And China 's Countermeasures

Posted on:2017-01-31Degree:MasterType:Thesis
Country:ChinaCandidate:Y RenFull Text:PDF
GTID:2206330485450712Subject:International Law
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Since the middle of last century, the progress of information technology and the improvement of international transportation capacity greatly promoted flow of international capital and development of international trade. At the same time, the interaction between different countries became much closer, and international investments and international trades of multinational corporation also became more active. In the process of foreign investment by international investors, the tax-haven country with its unique economic advantages attracts a large number of international investors to set up offshore companies there, so that they could carry out the global financial investment and trade in the way of regarding this offshore companies as their financial core. There is no denying that,to a certain extent,the offshore companies make some contribution to the prosperity of the international investment and international trade. However on the other hand, they inevitably bring about many negative impacts to capital home or host country, including money laundering, international tax avoidance, capital flight through offshore companies, of which the most common of international tax avoidance. This kind of phenomenon is more common in large multinational groups. Such as the world’s most famous Apple company set up its subsidiary named Apple Sales International(ASI) in Ireland in responsible for sales business except America area. It delivers most profits except America area to Ireland through transfer pricing so that it can evade taxes in the United States. The international tax avoidance by international investors through offshore company makes serious damage to the capital home country and the tax base of host country. In terms of our country, in the early of reform and opening up, with the deepening of the reform and opening up in China, the scale of introduction of foreign capital obtained the unprecedented development, a large number of foreign capital made the international tax avoidance through offshore company in the process of investment, as a result, our country as the host country suffered huge tax loss. But now, under the background of strategy of the state supporting enterprises to going out, China’s enterprises conduct the international tax avoidance though set up offshore companies first, then make the global investment or trade. As capital home country, our country also faces the challenges of the tax loss. How to use legal means to effectively regulate the international tax avoidance by offshore companies is always a problem in the world. The United States as the largest foreign investor in the world, pay attention to the problem of international tax avoidance by offshore companies in the first, the legal system of regulating the international tax avoidance by offshore companies is relatively perfect. At the same time, since the concealed and International of the international tax avoidance, many countries make more awareness of the importance of international cooperation in the process of fighting against international tax avoidance by offshore company. The Organization for Economic Co-operation and Development(OECD) and the European Union(EU) have made certain achievements in the international cooperation in combating offshore company of international tax avoidance. Taking appropriate legal measures to effectively regulate the actions of the international tax avoidance by offshore companies is a major issue to be addressed for China. This article will take the legal regulation of offshore company of international tax avoidance as the research object, drawing lessons of the mature experience of regulating offshore company of international tax avoidance from developed countries and international organizations, as well as combining with the current situation of anti-avoidance legislation in our country and the existing problems, puts forward opinions and suggestions about establishing and perfecting the law system of regulating offshore company of international tax avoidance in our country.Chapter 1 is the preface of the article, the author primarily gives a brief background in regards to the objective and the importance of the study, questions, compilation of relevant literature and research methods.Chapter 2 is about relevant theories of the article. Firstly, while introducing legal characteristics of “Tax Heaven” and “Offshore Company”, the author defines what “Tax Heaven” and “Offshore Company”, specifying realm of the study in the article. Secondly, the article is about to study the narrow definition of international tax avoidance. The article,finally, are about to introduce and analyze how the international community commonly proceed tax avoidance, which creates a basic foundation about how developed countries and international organizations react to it.Chapter 3 analyzes practices of anti-tax avoidance in China. The author attempts to conclude foreign countries’ similarities and differences regarding regulations of anti-tax avoidance, by analyzing western and developed countries’ specific institutions, namely the U.S.,the U.K. and OECD.Chapter 4 is the main topic of the article. The author attempts to provide some advice to improve China’s anti-tax avoidance system, based on the experiences of foreign countries and international organizations. The author, firstly, introduces the current and basic situation of anti-tax avoidance in China, finding out its weakness and defect. In addition, connecting previous foreign experience with the specific Chinese situation, the author would like to provide meaningful and feasible suggestions for Transfer Pricing, Thin Capitalization, Controlled Foreign Corporation and Treaty Shopping.
Keywords/Search Tags:Tax Heaven, Offshore Company, International Tax Avoidance, Controlled Foreign Corporation
PDF Full Text Request
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