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Research On The Legal Regulation Of Base Erosion And Profit Shifting Activities Of Off-shore Companies

Posted on:2017-02-02Degree:MasterType:Thesis
Country:ChinaCandidate:P P ShengFull Text:PDF
GTID:2346330566453298Subject:Economic Law
Abstract/Summary:PDF Full Text Request
The revenue of translational investors can be located all across the globe due to capital globalization and economic integration.For the purpose of profit maximization,more and more translational investors utilize international tax planning to avoid tax responsibility.Translational investors may receive preferential tax treatment and convenient finance services from offshore domains,where offshore companies are initiated.Thus offshore companies are widely taken use of by translational investors to reduce cost and transfer profit.Offshore companies conduct base erosion and profit shifting activities by means of transfer pricing,thin capitalization,abuse of tax treaty and offshore trust,etc.Those kinds of activities have eroded the healthy tax base,affected national tax sovereignty,caused great loss of fiscal revenue,and lead to unfair competition all over the world.Some companies in China are also undermining the tax base through offshore companies,which the domestic law cannot effectively regulate at the moment.This article started with the research on base erosion and profit shifting activities of offshore companies.It will provide suggestions on improving of Chinese legal system in respect of regulating BEPS activities of offshore companies after analyzing current reality of Chinese taxation and introducing the regulation experience of other countries and international organizations.This article is mainly composed of four parts besides preface and peroration.The first part explains the concept of offshore areas,offshore companies and BEPS,acting as the foreshadow of the following paragraphs.This part also elaborates the detrimental effect may be caused by BEPS activities of offshore companies on world economy and countries with tax sovereignty.The second part introduces several ways widely adopted by offshore companies to harm tax base and transfer profit in details.The most widely used ways are price transferring,thin capitulation,abuse of tax treaty,offshore trust,and electronic commerce,which started to be popular recently.This part also summarizes and proposes deficiencies of the current regulation of BEPS activities of offshore companies in China.The third part concentrates on the related regulation experiences from America,Japan and OECD,introducing the historical development of their regulation.In order to learning from advanced strategies,this part focuses on some special measures taken by them respectively.The fourth part provides some suggestions on improving Chinese legal regulation system over BEPS activities of offshore companies based on the above theoretical and practical research.This part also pays attention to international cooperation in respect of tax matters.
Keywords/Search Tags:Offshore Companies, Base Erosion and Profit Shifting, Tax System, Improving Suggestions
PDF Full Text Request
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