The Apas Legislation And Practice

With the rapid development of international investment, the transfer pricing method applied by multinational enterprises through their affiliated agencies to achieve tax evasion has resulted in huge loss in tax revenues of various countries, which is usually prevented by taxation authorities of different countries introduce adjustments thereto. However, there are many disadvantages in the traditional measures to the aforesaid adjustments. Advance Pricing Agreement that makes the post-adjustment of transfer pricing into advanced stipulation and brings convenience to both enterprises and taxation authorities, becomes an emerging provision widely adopted by most countriesBased on how to enhance the overall Advance Pricing Agreement provision of our country, the comparison and normative analysis methods are introduced. On one hand, it tries to analyze the legislation and practice of Advance Pricing Agreement on the world to make reference. On the other, it focuses upon the recent innovation and shortcomings in the legislation and practice of our country after the implementation of The Rules, in order to deliver my simple opinion on the development of Advance Pricing Agreement in China.Besides the forward and the conclusion, this paper consists of four chapters.Chapter I, an introduction of related theories to transfer pricing, makes the base that Advance Pricing Agreement is understood in the broad sense. It also imposes an analysis on the subject, basic principle, legal nature and grounds of Advance Pricing Agreement. Further, the advantage of Advance Pricing Agreement under the legal circumstance is mainly that it reflects the integration of statutory taxation and actual taxation principle. Also, this chapter discusses the pros and cons of Advance Pricing Agreement in the practice, as well as our attention to provocation of the pros and avoidance of the cons in legislation.Chapter Two, a research on the legislation and practice of Advance Pricing Agreement in the international community, imposes a description of Advance Pricing Agreement in the U.S. and the two important reforms thereof. It further analyzes the orientation of legislation in those reforms and agrees upon their positive influence on reference by our country. Further, analysis and evaluation to the OECD Guidelines for Conducting Advance Pricing Arrangements under the Mutual Agreement Procedure leads to my knowledge of its perfection. Also, the practices of Advance Pricing Agreement in Japan, Canada, Australia and other countries are introduced.Chapter Three, an analysis to the current legislation of China's Advanced Pricing Agreement legislation, discusses the practices of unilateral and bilateral Advanced Pricing Agreement of China so as to get an overall understanding and knowledge of the situation thereto. With a profound discussion on the bilateral Advanced Pricing Agreement practice, I think it is the weak point in the whole current Chinese practice and shall be the keystone of the nest stage to the development thereof.Chapter Four, analysis and advices to the Chinese Advanced Pricing Agreement, applies an analysis to the shortcomings in the Chinese Advanced Pricing in the fundamental and provisional perspectives. In the session of advices, I employ a systematical analysis and consideration to the further perfection of the Chinese Advanced Pricing Agreement with a reference to the legislation and practice of foreign Advanced Pricing Agreement, which leads to a viewpoint that we should strengthen the basis of the operation of our provision as well as the orientation of legislation, and that we shall improve the current legislation system and strive to co-operate internationally.