Research On The International Anti-tax Avoidance System For The Transfer Pricing Of Intangible Properties

The recognition of intangible properties in the fields of accounting and civil law differs from that in the meaning of transfer pricing in tax law,for the first time,the OECD adopts a general definition,however,the inherent disadvantage of a generalized definition is that the definition of the standard is not clear.Therefore,it is more appropriate to define both in a generalized and enumerated way.Transfer pricing is a neutral term and refers only to the behavior of affiliates setting internal transaction prices.Tax avoidance using transfer pricing can not equate transfer pricing with tax avoidance.The behavior of multinational corporations' base erosion and profit shifting("BEPS")has seriously disrupted the international taxation order.OECD has specifically formulated the Action Plan on Tax Base Erosion and Profit Shifting(hereinafter referred to as "BEPS action plan")for combating this behavior.It aims to ensure that transfer pricing results are matched with value creation.The legal ownership of an intangible properties does not by itself allow the legal owner to ultimately enjoy the rewards that MNE groups make in utilizing intangible properties.The determination of profit distribution through the determination of key functions,the control of significant economic risks,and the contribution of properties is the result of transfer pricing and its value create a matching principle of a manifestation.The principles of transfer pricing should follow the principle as arm's length principle,comparability principle and the best method rule.Multinational corporations to maximize profits and improve their competitiveness,to take the tax avoidance method is mainly used in tax planning differences in the identity of residents of different countries,cost contribution arrangement,exceptions to the rules of controlled foreign companies will profit from high tax rate countries to low-tax countries,and even double the effect of non-taxation.There are also many multinational corporations using direct licensing,contractual research and development,and cost-sharing separate models for tax avoidance.In view of the above-mentioned international tax avoidance model,the international anti-avoidance system for the transfer pricing of intangible properties is mainly the arm's length law,the global formula assessment method,the EU CCCTB and the advance pricing arrangement.The transaction net profit method in the independent transaction law requires the transaction to be comparable and the transfer pricing of the intangible properties is not comparable in most cases.The adjustment range is extremely limited.The profit division method can effectively adjust the transfer pricing of intangible properties.However,in practice,it is difficult to measure the total profits generated by related party transactions,lack of uniform standards to measure the contribution made by all parties in related party transactions and the possible double taxation or double non-taxation.The global formula apportionment method and the CCCTB both count the total profits first,distribute the profits according to the established formula and then tax the profits.The CCCTB differs from the applicable global formula apportionment method in the Americas in that it has the advantage of regional economic integration and you are free to choose to join or leave.Advance pricing arrangement is an ex ante adjustment system that can achieve a win-win situation for the tax authorities and multinational corporations,but at the same time there is a problem of difficult data analysis and difficult division of tax base.The four international anti-avoidance systems in the development process,the global public apportionment method has the tendency to replace the arm's length law,but global public apportionment method and CCCTB are different,advance pricing arrangement gets another way,the first three kinds of ex post adjustment system change Into the pre-adjustment system.Anti-avoidance system for transfer pricing of intangible properties may lead to the situation of "multiple sets of carriage"in the future,namely the existing independent transaction method,the CCCTB and global formula assessment method,the four adjustment system of reservation pricing and the new adjustment system go hand in hand,at the same time play a role.China's intangible properties transfer pricing anti-avoidance system is gradually improving,but at this stage there are still the following problems.That is,the definition of intangible properties in our country,the scope is not clear,the guiding principle is not comprehensive;the income distribution system of intangible properties lacks the supporting standards for implementation;the legal adjustment method of undisciplined intangible properties and tangible properties;the obligation of confidentiality of the reservation pricing arrangement system has not been done detailed rules and regulations,and a long period of reaching an advance pricing arrangement system are too long.At present,China has only promulgated the measures for the Administration of Due Diligence on Tax Information of Non-resident Financial Accounts,which stipulates the content of information and information exchange and has not promulgated a law of higher efficiency.Therefore,our country should make it clear that the definition and scope of intangible properties,the principle of comprehensive use of transfer pricing,the introduction of income distribution system of ownership of intangible properties,and the development of special provisions for the transfer pricing of intangible properties.In our advance pricing arrangement,reached a cycle of confidentiality,as soon as possible on the introduction of the law on the exchange of information and intelligence,non-resident financial account due diligence survey of financial information management practices,one by one to improve the problem,the domestic financial institutions to identify non-resident accounts and collect relevant information practice to make detailed provisions to increase the non-resident accounts opened in China or non-resident non-financial institutions to protect the rights of non-financial institutions,the introduction of the provisions of the financial institutions to submit information and to participate in the implementation of FATCA obligations related provisions.