Research On Several Legal Problem Of The Multinational Companies Using Transfer Price For Tax Avoidance In China

The problem of multinational companies using transfer price for tax avoidance has been the important tax reform for different countries in 20th century. For building well-off society in round way, deepening reform and opening-up period Chinese, Formulating tax legal system of transfer price more perfect, not only retrieve the huge economic loss by multiria tional companies using transfer price for tax avoidance, but also attract great numble of Multinational Corporations to invest in China,which will deep reform and opening-up cause, reach the effect of counterbalance and double win. Thus, refining the transfer prices regulation will be the core problem of the multinational companies using transfer price for avoiding tax in China.With the combination of thoery and practice methods, take the largest transfer price case of Shenzhen multinational corporations for example, author will put forword to several legal problems on regulation of transfer price. By researching the individual case, and summarize pervasive problems, using the example and method of induction, author will completely analyze four hot spot issues about this case. Learn from foreign experience, author will give some advice on improving Chinese regulation of transfer price.Four parts are included in this thesis. The first chapter introduces us about the transfer price case of Shenzhen multinational corporations and four hot issues invovled in this case. The seconed part is mainly about the theory of transfer price, it contains the basic problem and the principle and adjustment methods of the transfer price for tax avoidence.The third charpter tries to analyze the four hot issuses of transfer price case. The last part, some advices will been given for the improvement of tax regulation of the transfering price. Such as, from substantive law, defining the arm’s length’s standard and Profits method, formulating tax avoidence regulations of connected transaction from different industries. Procedural law will estabished detailed regulation on advaced pricing agreenment, clear reporting obligations and the burden proof for taxpayers, refine the penalties of transfer pricing for tax avoidence.