Legal Regulation Of Multinational Tax Avoidance

The multinational corporations have had an unprecedented development with thecontinuous development of social productive forces， the increasing specialization，socialization and internationalization of production， the technological advances， therapid expansion of capital accumulation as well as the rapid growth of the foreigndirect investment. Through setting up branches or subsidiaries abroad， themultinational corporations form a large enterprise with their own global strategyranging from production to sales to pursue the high profits from home and abroad.Multinational corporations have become the core organizers of the world economy，taking a crucial position in the world economy. Multinational corporations have theirown advantages and disadvantages. On the one hand， they accelerate theinternationalization of productive capital， allow a better allocation of resources， andmake great profits. Through their branches and subsidiaries around the world， hightechnology has been spread and the exchange of international technology has beenstrengthened. Moreover， for the developing countries， it can make up for the lack ofdomestic funding， provide more jobs and improve the international balance ofpayments in order to promote their own country’s economic development.However， on the other hand， the global strategic development trends of themultinational corporations bring new challenges to the traditional legal concept whicharouses the widespread concern of the world. Especially for the international tax law，the tax evasion is quite often among the multinational corporations and they tend totake the advantage of the fact that government doesn’t fully understand the foreignprice information so that they can transfer the profit by means of transferring pricingand evade tax through weakening capital or making use of the exempt zone. That’swhy it’s very significant for each country to study the tax evasion of the multinationalcorporations and improve the anti-tax evasion abilities.This thesis makes a systematic and in-depth study of the tax evasion of the multinational corporations and the anti-tax evasion measures on the basis of theinternational tax evasion and anti-tax evasion theories in the international tax.Furthermore， this thesis studies the current situation and the problems of China’santi-tax evasion work and provides some suggestions and innovative ideas for thefurther perfection of China’s anti-tax evasion law.