A Study On The Effect Of Tax Planning With International Tax Havens

With the development of economic globalization,mutually beneficial interaction between multinational corporations and international tax havens has greatly changed the pattern of world economy.The international tax havens serve as lubricant in the global economy,while some multinational corporations and rich people abuse international tax havens for tax evasion,resulting in huge loss for their countries.The western countries have already expressed the dissatisfaction and take various forms of regulation.However,a large number of enterprises in China,such as Alibaba,Sina,Baidu still register in the international tax havens.On the one hand,they hope to reduce their tax burden in this way.On the other hand,they also hope to enhance the profitability of enterprises by using the conveniences of international tax havens.Therefore,we choose data on Chinese overseas listed companies from 2011 to 2016,and conduct the empirical study on the tax burden of enterprises and the profitability of enterprises.As a result,the tax burden of enterprises registered in the international tax havens is not significantly lower than that of other enterprises;the profitability of enterprises registered in the international is higher than that of other enterprises.The empirical study and data on the tax burden of these could provide decision basis for China government to face the increasingly intense international tax competition.This thesis is divided into seven parts to study.In the first part,after discussing the background of the study,the problems and directions of this thesis are puts forward.As China gradually integrates into the world economy,the use of foreign capital in China is gradually increasing.So many excellent enterprises in China are registered in international tax havens.This phenomenon has aroused many scholars' thinking and discussion.We need to analyze the tax burden and profit level of the overseas listed companies registered in tax havens and answer this question with empirical research.The second part is literature review,which includes five parts: First,literature review on the definition of international tax havens.Second,literature review on the forming factors of international tax havens.Third,literature review on the classification of international tax havens.Fourth,literature review on the role of tax havens.Fifth,the literature review of multinational companies using international tax havens for tax avoidance.After reviewing the literature,we find that there is no published empirical thesis in China on whether the tax burden of the overseas listed companies registered in tax havens is really reduced or not.The third part of this thesis mainly expounds the theoretical basis of the study of international tax havens,including the theory of international tax planning,the theory of tax planning for international tax havens the theory of international tax competition and the background of international tax regulation.The fourth part is about famous international tax havens and the reasons why overseas listed companies register there.This thesis enumerates the Cayman Islands and the British Virgin Islands and analyzes the reasons for the registration of overseas listed companies.In the fifth part,two hypotheses of this thesis are put forward on the basis of certain theoretical analysis,and the relevant variables are selected to design the model.The sixth part is empirical analysis,this thesis uses the data of Chinese overseas listed companies from 2011 to 2016.Through descriptive statistics,correlation analysis,regression analysis and robustness test,the thesis draws a conclusion consistent with the hypothesis.The seventh part summarizes the conclusions of the research.This thesis puts forward some suggestions on the supervision of international tax havens in China and analyzes the deficiency of this thesis and the prospect of future research.