Research On Tax Planning Of Cross - Border Reorganization

With the rapid development of economy and the improvement of market openness, Chinese enterprises are expanding their scale of the investment of foreign countries.However, as Chinese enterprises’ foreign investment is growing rapidly, some old enterprises of foreign countries are purchased by the Chinese companies, such as Zoomlion acquired CIFA of Italy, Geely acquired Volvo, more and more Chinese companies of resident enterprises in the foreign countries have become MultiNational Corporation through overseas mergers and acquisitions. Since China has signed bilateral or multilateral tax treaties with the much of the most important economies of the world, our global tax treaty system has been gradually formed. As tax treaty network construction reduces the overall tax burden of enterprise income tax. They have got a lot of space for operation in order to enjoy the preferential tax treaties, Therefore a large number of multinational companies tend to set up overseas intermediate holding company’s investment.However, some enterprises only consider the business needs of the enterprise,they have ignored the corporate income tax liability. When enterprises recognize the necessity of the burden of tax payment, they tend to adopt a tax planning method, as the least of the tax burden as possible. Thus the enterprises usually ignore the different tax risks brought by different tax planning methods.This paper, with Zoomline as an example, pointing to the above problems,considering the vital interests of the enterprises, analyzes them and gives the results,the different tax planning scheme under the tax burden contrast and facing the tax risk.This article can be divided into five parts, the first part focuses on the research background and significance, and collects some influential cross-border restructuring tax planning aspects of Chinese and foreign journal, combines the framework and research methods, names the main contents and the innovation and deficiencies. The second part is the most important discussed. Analysis of the Zoomlion’s potential needs of cross-border restructuring tax planning is introduced as a typical case. Then it puts forward the four cross-border restructuring tax planning scheme and uses the open market information respectively from different point of view to put forwarddifferent schemes of different tax planning for enterprises to calculate the total tax burden and face the tax risk. The third part is on the basis of the second part, stands on the perspective of the enterprise, from the state strengthening anti tax avoidance,policy uncertainty, to the problem of double taxation that branch set up multiple attempts exploring cross-border corporation and restructuring in the tax planning process may face some general risks. And the fourth part, on the bases of the third part, discusses general risk point, and puts forward some specific measures according to foreign host country, tax planning data integrity, strengthening bilateral tax authorities collaboration and improving enterprise tax planning and official incentive system aspects put forward some specific measures. The last part refines the four parts of the content, and gives the summary of the paper.