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Analysis Of Transfer Pricing Tax Laws

Posted on:2008-06-13Degree:MasterType:Thesis
Country:ChinaCandidate:D H LiaoFull Text:PDF
Abstract/Summary:PDF Full Text Request
With the development and globalization of economy, more and moreenterprises choose the managing model of corporation group and use internaltransactions to maximize interest of the whole. It has been an open secretthat related enterprises, especially foreign-invested companies oftenmake use of internal transfer price to escape taxation. A conservativeappraisal indicates that 300 hundred million RMB has been lost in ourcountry, which the government is paying great attention on. In China, thetax legislation on transfer pricing is constituted late and mostly aboutprinciple. They are too simple and too abstract to operate. It is necessaryto discuss and analyze the transfer pricing in practice and in theory toimprove our administrative ability on the tax and reduce the loss ofrevenue.To study transfer pricing, this paper bases on tax law and economicsand tends to build a mature theory system. This paper contains 4 main partsas follow: The first part of this paper is to define the transfer pricing,including definition,parties,behavior mode,motive,purposes and behavingform, which establishes the primary theoretical basis for the study. Thesecond part analyses the transfer pricing and determines it as aninstruments of tax avoidance in narrow sense. It is a behavior of escapingfrom law. The paper also utilizes the tax basic principles to study it,including principle of legality,equability of taxes,tax trustworthiness。The third part of the paper has an in-depth study on the principle andmethods of legal regulations. Analysis and appraising Chinese transferpricing is the emphases. Using foreign the experience for reference andaiming at Chinese actualities, the last part of the paper brings forwardthe idea of the author from legislation,regulation means,building information systems and administrative organization,cooperation ofinternational tax anti-avoidance and so on.In America and other western countries, the transfer pricing systemwith centuries-old history is more mature and developed than Chinese. OECDalso attaches importance to transfer pricing and has issued and emendedthe guidelines on it for several times. Since China reforms and opens-up,the study and legislation on transfer pricing have not been mature. So thepaper is valuable. In the related essays before, most of them are basedon economics, the study of professor LiuYongwei is based on law. Now taxlaw is independent and has itself theoretical system. So the study oftransfer pricing based on the tax law is necessary, however, which are few.The author once worked in a foreign-invested company as an accountant andhad a little experience with transfer pricing. Now, as a graduate, theauthor majors in tax law, therefore choose transfer pricing to study. Thetheme of this thesis may be novel, but limiting to the theoretical levelof the author, there must be mistakes in it. Please point them out so thatthey can be corrected.
Keywords/Search Tags:transfer pricing, controlled transactions, tax avoidance, basic principles of tax law, arm's length principle
PDF Full Text Request
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