The Study Of Legal Regulation On Off Shore Companies' International Tax Avoidance

The horizontal and vertical development of Economy globalization has contributed to not only the increasing dependency and tightened communication among countries,but also dynamically flourishing international investments from transnational corporations.Offshore companies,as an important legal phenomenon in international capital market,are playing a vital role in developing the global economy,whereas causing severe damages to both countries the tax base of national finance in both home and host though the exploitation of preferential taxation policies in offshore legal regions for the purpose of international tax avoidance.With respect to our country,an increasing number of Chinese companies go abroad and establish offshore in offshore legal regions for international investments and trades,to avoid taxations in China.It has been a worldwide problem that how to effectively regulate the tax avoidance of offshore companies through legal means.Moreover,because the separability determined by the establishment and operation of offshore companies has made it necessary for united regulation by several countries,European Union as an organization for economic cooperation and development has obtained some results in international cooperation for jointly fighting against international tax avoidance of offshore companies.This thesis takes the legal regulations of international tax avoidance by offshore companies as the object of study,draws lessons from practical experience of anti-international-tax-avoidance laws and regulations from developed countries,such as the US,the UK,Germany,and Japan;while decomposes relevant laws,regulations,and practical experience from international organizations regarding the international tax avoidance of offshore companies,and grounds on the current situation,problems,and relevant legislations in our country for establishing and improving reasonable proposals for the regulations of offshore companies and the legal system of international tax avoidance.There are four chapters included in this thesis.The first chapter defines key concepts of this thesis.It starts from the definitions of offshore legal regions,offshore companies and the summary of legal characteristics of both offshore legal regions and offshore companies.It then moves to clarify the concepts on tax avoidance,international tax avoidance,and international tax avoidance of offshore companies,in comparison with related concepts.Finally,this chapter introduces widely adopted means by international investors for international tax avoidance,and special functions of offshore companies in international tax avoidance.The second chapter focuses on regulations of national legal practice for international tax avoidance of offshore companies.The studied cases in this chapter are mainly regulations that has achieved significantly in fighting against international tax avoidance by offshore companies,including in the US,the UK,the EU.Laws,regulations,and relevant policies aiming at international tax avoidance behaviors by offshore companies are described and assessed accordingly.The following chapter three reviews practical analysis on regulations by international organizations towards international tax avoidance behaviors of offshore companies.It systematically analyzes laws and regulations that offshore companies attempt to avoid,including international bilateral cooperation on laws and regulations against international tax avoidance of offshore companies,Taxation of cross-border interest and royalty payments in the European Union,and the OECD Counteracting Harmful Tax Competition Progress Report.The final chapter,as the core of this thesis,mostly introduces current situations of legislation on international tax avoidance behaviors of offshore companies in our country,and assess problems that exist in the legislation on international tax avoidance behaviors of offshore companies from various perspectives.Based on these knowledge,chapter four goes a step further to give recommendations on legal countermeasures of effectively regulating offshore companies in our country.