Studying On Legal System Of China's Anti-Abuse Tax Agreement

Action 6 of BEPS Project identifies treaty abuse,and in particular treaty shopping,as one of the most important sources of BEPS concerns.The signing and revision of the tax agreement is mainly aimed at solving the international double taxation and coordinating the correct handling of tax collection by transnational taxpayers.In general,The tax agreement applies only to one or both of the inhabitants.If the resident of a non-agreement party is established through the establishment of a conduit company or intermediary agency,People are planning to get tax preference that they would otherwise not be able to receive.In this case,The third country does not limit its tax jurisdictions,nor tax cuts have been made to the contracting parties.This is contrary to the principle of tax equalization of transnational taxpayers.At the same time,the tax base of the parties to the tax reduction has caused erosion.In the long term,Not only to combat the enthusiasm of countries to negotiate tax treaties,but also break the balance of interests between the parties to the tax treaty.And it caused the chaos of the international tax order.The abuse of tax treaties by transnational taxpayers is mainly the intentional evasion of regional jurisdiction.The methods of preventing the abuse of tax treaties rely mainly on domestic law and the addition of anti-abuse clauses in tax treaties.However,the traditional methods of preventing the abuse of tax treaties are due to their own shortcomings or defections.Therefore,Led by G20 members,Commissioned the OECD to draft BEPS action project is designed to address the severe challenges of the existing international tax system.In the sixth plan of action,countries first agreed to include anti-abuse provisions in their tax treaties,including a minimum standard to counter treaty shopping.The report focuses on the inclusion of the limitation-on-benefits rule and the principal purposes test rule in the tax treaty.Next,Countries agreed to amend the title and preface of the tax agreement,and ask for clarification that the tax treaties are not intended to be used to generate double non-taxation.Last but not least,having a clear articulation of the policy considerations that,countries should consider before deciding to enter into a treaty could make it easier for countries to justify their decisions not to enter into tax treaties with certain low or no-tax jurisdiction.With the gradual generalize and implementation of the BEPS package project,Under this framework,The commercial profits of multinational taxpayers will be taxed where economic activities take place and value is created.In the future tax treaty on signing,amendment,implementation and dispute settlement,not only Follow and draw lessons from the minimum standards in the BEPS action plans,but also reserve the right of independent consultation in our country.in the meantime,to make timely and necessary adjustments to relevant domestic tax regulations,it is a major task facing our tax department.This is an effective way to prevent transnational taxpayers from abusing tax treaties,and great significance to Maintain China's national tax rights and corporate interests.