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Study On The Legal Problems Of International Tax Avoidance Of Controlled Foreign Company In China

Posted on:2016-08-20Degree:MasterType:Thesis
Country:ChinaCandidate:Y ZhouFull Text:PDF
GTID:2296330461967729Subject:Civil and Commercial Law
Abstract/Summary:PDF Full Text Request
Under the background of economic globalization, economic exchanges and international cooperation is more frequent, the emergence of a large number of Multi-National Corporation. The merchant’s profit and the profit maximization based, Multi-National Corporation set up in the selection, international investors will usually set up tax environment as an important investment factors. All the countries in the world political and economic development level is different, there are differences in the implementation of the tax system, the tax rate for foreign investors in different countries of the international tax avoidance may be provided. The use of high and low rates in low tax or tax exemption country (region) to establish the tax for the purpose of the company was known as Controlled Foreign Company.The Controlled Foreign Company, in addition to the use of the home country and the low tax or tax exemption country (region) between the high and low rates, but also by the deferred tax system, the independence of corporate personality and the influence of factors such as international tax jurisdiction conflict. Deferred taxation system is regarded as the government and enterprises "win-win" system, not only can improve the international competitiveness of domestic enterprises, but also for enterprises to provide a "interest free loans". The independent personality of the company, Controlled Foreign Company independent of affiliated companies, financial independent accounting and enjoy preferential tax policies for tax havens. All the countries in the world according to its actual situation, the tax jurisdiction principle most personal and local implementation of the principle of combining, inevitably there will be conflicts of tax jurisdiction, lead to international double taxation. Countries typically sign bilateral or multilateral international tax agreement, take the method of tax credit, tax sparing credit and other ways to solve the problem of double taxation. Controlled Foreign Company tend to use the tax loopholes, to achieve the purpose of tax avoidance through tax difference.The Controlled Foreign Company becomes Multi-National Corporation international tax avoidance tools, the use of transfer pricing, tax havens, thin capitalization, the agreement of the international tax avoidance and other tax avoidance mode, the tax avoidance behavior is more subtle, leading to the tax authorities is difficult to detect and regulate.The western developed country’s Controlled Foreign Company established a relatively perfect system, Japan, Germany, American Controlled Foreign Company tax representative. After compared the difference between the common law and civil law in the Controlled Foreign Company tax, can draw lessons from the relevant provisions of which in line with China’s national conditions, China Controlled Foreign Company tax in tax havens, control standard, determination of taxable income, exemptions so as to gradually perfect. Improve the pricing system of the transfer of our country, need to expand the scope of application of advance pricing system and strengthen the regulation of tax penalties to achieve. Identification method in tax havens, a number of the introduction of international organizations identified factors of comprehensive judgement, make it more scientific and reasonable. Thin capitalization tax system improvement, can be in a fixed ratio setting for financial enterprises and other enterprises were adjusted accordingly, and the related parties control the level of certain changes. China’s current tax environment and the domestic and foreign investment level, can be added into the allocation of shares publicly listed exemption, exemption, exemption, exemption clause construction industry, and continue to strengthen our country tax information exchange system, the tax authorities to strengthen international cooperation of anti tax avoidance, in order to ensure our country’s fiscal revenue, prevent the tax base from erosion.
Keywords/Search Tags:Controlled Foreign Company, international tax avoidante, transfer pricing, tax havens, thin capitalization
PDF Full Text Request
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