Study On Anti-tax Avoidance Based On BEPS Action Plan

In the wave of globalization,multinational companies make full use of the optimal allocation of global resources,build all-round,three-dimensional structure of the industrial chain,and promote the development of the world economy.At the same time,multinational groups also take advantage of the difference between various national tax systems and loopholes,erode tax base and transfer profits,to reduce their tax obligations.On one hand,Through profits transferring,multinational groups obtain a huge profits,and greatly reduce their tax obligations;On the other hand,since the situation of tax avoidance is common among multinational groups,it seriously violate the tax sovereignty and tax benefits of the tax jurisdictions.Therefore,transnational tax avoidance has become a serious issue of international taxation.In this context,the paper firstly introduces the 15 achievements of the BEPS Action Plan,and reviews the past research on transnational tax avoidance and anti-tax avoidance.Secondly,by summarizing and sorting out the measures of BEPS Action Plan that have been implemented by OECD countries in the world as at the end of 2016,the paper finds that some of the action sub-programs are jointly and actively implemented by all countries,and some action sub-plans are difficult to implement because they are hampered by countries’ interest competition or countries’ actual situations.Thirdly,through two cases respectively,the paper introduces the typical tax avoidance measures in China and the most noticeably tax avoidance case in the world.Among them,one case is the WS Company and its overseas parent company that taking the advantage of commission fees to transfer profits manually,so as to achieve the purpose of evading tax obligations.Another case is the European Union that imposing a huge tax ticket on Apple Company.Through the deep excavation and analysis of Apple’s global structure,financial data and the Irish government’s tax ruling,the paper finds that Apple had used various tax avoidance measures,including digital economy,intangible assets transfer,patent technology application rights,loopholes of resident taxpayer identification and tax rulings to achieve the purpose of minimizing the tax burden.Finally,combining the BEPS Action Plan and the current anti-tax avoidance practice,the paper provides relevant recommendations.This paper suggests that China should deal with the problem through three aspects.One aspect is to build a more scientific and rational monitoring indicators which based on tax risk management indicators and information technology,effectively monitoring multinational companies;the second aspect is to enhance the daily regulatory level of tax authorities,making good use of the monitoring technology toinvestigate the risk,finding out problems by tax auditing,in particular,paying more attention to the common measures of tax avoidance and strengthening the supervision;on the third aspect,at the macro level,China should actively involve itself in the global international tax rules development work,strengthening international tax cooperation,and doing a good anti-tax avoidance job in both horizontal and vertical dimensions.