Research On "Beneficial Owner" In Chinese And Foreign Tax Treaty

BEPS action plan to lead the global anti-avoidance enter a new phase, in which the action plan 6 to prevent the abuse of tax treaties concern around the world. In recent years, the growing problem of international tax avoidance, tax treaties makes perfect "beneficial owner" theory and regulations, the key to prevent treaty abuse and regulatory avoidance. Since the introduction of the beneficial owner OECD Model tax treaty in a long time, it has no clear definition. OECD report on the work and only the comments showed a lack of independence will for others to engage in property management agent, designated the principal and other intermediaries, can not be regarded as the beneficial owner, denied the conduit for the cash in the company’s tax identity of the beneficial owner. The countries signed a tax treaty has also been no problem for the beneficial owner of comprehensive regulation, so that the beneficial owner of the theory has been controversial. Or beneficial owner is a legal concept economy concept controversy, the different approaches taken by States in the tax practice, so that the beneficial owner is an urgent need worldwide to form a complete theoretical system.This paper discusses the history and the beneficial owner OECD Model, UN Model development for all benefit provisions, indicating the value of the beneficial owner is to achieve tax fairness and substantive principle of taxation. Analysis of the Anglo-American countries to benefit everyone in the latest tax treaty provisions, indicate the current tax treaty signed by the beneficial owner of the latest provisions of deficiencies. The actual tax work for the benefit of all countries in the application, despite the economic substance and business purpose to follow the rules, but those rules belong to the deep underlying factors, the lack of specific evaluation criteria, resulting in a non-uniform application of the beneficial owner. The value and significance of the beneficial owner is to prevent tax avoidance, but the difference in the practice of States, it will lead to "beneficial owner" contrary to the fundamental purpose. China’s latest increase in the tax treaties, although the proportion of investment instruments shareholding predetermined time, but compared to the complexity of multinational capital transfers between associated enterprises is difficult to identify the main power, our country finds beneficial owner will face more more challenges. The legal documents of tax provisions to benefit everyone, not part of the law enacted by the legislature, it is difficult to obtain recognition of States in international tax cases. In this context, the face of the action plan launched BEPS, China should learn from the beneficial owner of the contents of the latest tax treaty countries, improve the specific embodiment of the purpose of the test, and the scope of the main beneficiaries of all, the essence of international control of the resulting capital content such as the right to refine, further improve the provision of tax treaties and domestic laws. International anti-avoidance destined to be a never-ending problem, for the abuse of tax treaties lead to erosion of the tax base, the world must cooperate to improve the unity of the international tax laws, China should first national "beneficial owner" provision to that end Arrangements and improvement, and actively participate in the establishment of international tax law, and improve the country’s international discourse.BEPS action plan to launch into the era of globalization means that international taxation, tax treaties between countries should be subject to uniform application standards. The beneficial owner and can not simply be judged legal substance, but also to take into account the beneficial owner of the operation of the main substantive standards and other factors. "Beneficial owner" is the other way to set up multinational operations conduit companies taking tax basis, any of its lack of effective regulation, will not only lead to the abuse of tax treaties to bring the tax base erosion, but will not be unified practice in countries in creating an-made according to national practice avoidance select-international tax environment. Economic sovereignty of countries makes international tax structure with a prisoner’s dilemma, countries are intended to collect more taxes, but this is not conducive to cross-border economic activities. Based on this, in order to avoid the emergence of countries to pursue profit maximization, mutual constantly compete by lowering tax rates, resulting in unreasonable tax environment, only a unified tax treaty benefit from the implementation of standards for all, in order to ensure reasonable compensation subject to tax costs. The purpose of tax treaties is to avoid double taxation, that is the beneficial owner of the concession the State party to this end, to make its own taxing authority, it is based on the Contracting States to give each other reciprocal preferential tax residents. That is to ensure that the beneficial owner of such "reciprocity" from being acquired by non-residents of the State party to ensure tax fairness. Beneficial owner of the security tax fairness can be understood as:give back to the pair in the transaction to provide free access to public resources or guarantees manager, country of origin because the resulting providers and income-generating most or all of the stakeholders, which also the cost of providing these benefits occurred, for the State to provide security services obtained exclusive exercise of the right to tax to compensate for these costs.