On Improvement Of Advance Pricing Agreement Legal System In China

Taxation is the performance that a country's sovereignty reflects in economy,and also is the essential economic foundation to maintain the state run. To guarantee the taxation, in a sense, is to safeguard national sovereignty. Therefore, the tax laws in force have already designed some safeguard measures; the advance pricing agreement system is one of them. The advance pricing agreement system is a specialized system that is set up against transfer pricing. Transfer pricing is an economic behavior that using the form of related transaction taxpayer to transfer the profit from heavy tax burden area to low tax burden area in order to realize the maximum of profit for the taxpayer. Obviously, it will be a great impact on our stability of the tax revenue if we allow this kind of deliberately and abusive behaviors to happen frequently, and will also be terribly harmful to our taxation power. That is why the existing tax laws have to design the advance pricing agreement system.To perfect our advance pricing appointment pricing legal system, firstly, we should start from its legal basis. Specifically, this paper analyzes the theory foundation of the current advance pricing agreement legal system from two aspects, on the one hand, is to guarantee our taxation rights, on the other hand is to maintain the taxpayers' rights, these two rights of both conflicts and coexistence are the foundation and target to design the reasonable advance pricing agreement legal system.Secondly, to study the advance pricing agreement legal system we should learn the successful legal system and experience from the developed foreign countries. The advance pricing agreement legal system is an "exotic" as many other legal systems. On abroad, from the beginning of 1980s, some developed countries such as the United States and Japan had begun to study the advance pricing agreement system and draw up some regulations; in the advance pricing agreement system, there is a more important law source that is the regulations of the organization for economic co-operation and development (OECD) , as an international organization to promote the global economy, the OECD since the 1970s, has successively formulated a number of tax agreement template, some of them are about transfer pricing regulation and advance pricing agreement system. These laws and practice experience are very useful for our country to perfect our advance pricing agreement legal system. This article puts forward some useful suggestions on my view to perfect our own advance pricing agreement legal system based on summarizing the legislative process, institutional installation and implementation procedures, learning from those useful experiences.Then, the paper points out problems that exist in China's current advance pricing agreement legal system and puts forward some legal countermeasure to solve them, in order to make this paper endowed with both theoretical and practical meaning. During the specific discussion, this paper gives its analysis though studying the problems that exist in the current advance pricing agreement in the aspects of legislation and enforcement guarantee. The paper point out that although our country's existing laws has already given some regulations about advance pricing agreement, but still not perfect. From the legislation perspective, currently advance pricing agreement system has not reflect the higher efficiency, and the time of its procedures is too long, the tax provisions are few, supervision system is not perfected and so on; From an implementation protection perspective, now advance pricing methods are not proper, the supervision system also are not set up, has no special tax court, the burden of proof is not clear and so on.Finally, draw lessons from foreign legislation and practice, the paper put forward the suggestions to perfect our own advance pricing agreement legal system. In legislation, the paper suggests to set up regulations that can reflect the fair value and strengthen of tax competition rules and perfect the current management service regulations, etc.In implementing guarantee perspective, we need to improve information disclosure mechanism, strengthen the law enforcement cooperation, and train more professional talents, etc.In the current economic background, to study legal problems about advance pricing agreement legal system and put forward legal countermeasure is significant for perfecting the relevant tax law theory, improving the service level, and promoting enterprise development and so on.