Study On The Legal Problem Of Tax Avoidance Of Thin Capitalization Of Multi-national Corporation

With the development of the international economy and society,the economic exchanges among countries become more and more frequent.The Multi-National Corporation has developed and grown in the tide of globalization,and has a decisive role in the international market.With the Multi-National Corporation to bringing huge economic benefits to all countries in the world,all kinds of international tax avoidance behavior has made many governments feel bothered,especially in the way of the weakening of the capital.Compared with other international tax avoidance methods,the capital weakening tax avoidance behavior,the behavior model is simple,having the characteristics of low cost of tax avoidance,and the effect of the tax law is the most effective.The reason is mainly due to the weakening of the behavior of the capital inherent in the legitimacy of the cloak,so it is easy to have a normal transaction with the general nature of the loan confusion,the tax authorities are difficult to accurately identify.Weakening of transnational capital,in addition to take the general association loans,more will take back-to-back loan and parallel loans more complex covert way.Therefore,the purpose of this study is to accurately identify the weakening of the tax avoidance behavior of capital,but also to facing the normal trading of loans to be protected by law.In the second chapter,we first define the weakening of the capital from the concept,explaining the reason of the weakening of the capital,the general process.Then in the third chapter,the analysis method of law legal analysis of the thin capitalization,from the legal definition of its illegality,the key lies in the determination of an independent third party loans;also the creative uses the law and economics analysis method was used to analyze the thin capitalization,through the analysis of law and,Economics.It is pointed out that multinational companies take the capital weakening tax avoidance of the law and economics theory,in order to provide theoretical basis for the further interpretation of thin capitalization regulation method.At the international level,the article first on the OECD of the weakening of the tax system,and then to Germany and the United Kingdom as an example,to discuss the typical anti capital weakening method.In the last chapter of this paper focuses on the analysis of our country in capital weakening of achievement,especially at the end of the article,from the angle of law and economics proposed China should the thin capitalization uses punishment mechanism of new ideas.