Research On The Pass-through Entity Of Cross-border Personal Income Tax

When the cooperation between countries have become increasingly frequent,personal services between countries are more and more convenient.Because the difference between national regulations and the tax loopholes and other reasons.The number of cross-border personal income tax evasion cases also increased.Countries will often use pass-through entity in investigating this kind of case.However,because of various reasons,pass-through entity has been subject to various questions and criticisms.That has the inevitable flaws in legal theory and practice in the process of personal income tax.Such as the applicable domestic law did not support pass-through entity.It also do not have the relevant provisions of the tax treaty,and every country lack a unified and detailed implementation for the practice of the pass-through entity.However,for nations,there is no other better way to deal with the relevant cross-border personal income tax cases.So,for cross-border personal income tax evasion cases,application of the pass-through entity is more realistic and practical.Most of the cross-borderpersonal income tax evasion cases happened inthe group of artists and athletes.Many of the cases have shocked the world every year,.Because artists and athletes often get a high income,and also their source of income is more complex than ordinary people.So cross-border income usually occupies a very high proportion of their total income.That fact offers the possibility for the cross-border personal income tax evasion.In this context,once artists and athletes success in cross-border personal income tax evasion,it is bound to cause a lot of tax loss.More importantly,because they are very well known in the community,their tax evasion will have more terrible social impact than the general made.Thus,this group is a typical representative of personal income tax in cross-border tax evsion cases.So the article takes the artists and athletes as an exampleto explore the rules of pass-though entity in the cross-border personal income tax cases.The research method of this paper uses case analysis method and comparative analysis method.By studying the relevant literature of the United States and some other countries,we we will know if countries use the pass-through entity to solve the cross-borderpersonal income tax cases is up to legality.And the paper will inthoduce American theoryand practice experience ofpass-through entity.And then,the paper will research the plight of applicable pass through entity in cross-border personal income tax cases and improve the program.The most important thing is to propose some suggestions for our country to solve cross-border personal income tax evasion cases with pass-through entity.This paper is divided into three chapters.The first chapter is on the analysis of tax case in which Beijing tax levied foreign star 18 million yuan,Messitax evasion case,Di Maria tax evasion case.It also obtain the focus of controversy,problem analysis.The three case are very typical cases of personal income tax evasion cases in which the pass-thourgh entity was used,especially the case of Messi has great influence in the world.That has very important practical significance and academic value of the analysis.The second chapter is the concept of pass-though entity and related theory.The pass-through entity comes from principle of the independen.In practice it is more is to rely on the principle of economic substantive guidelines.In addition,By summarizing three cases,the chapter summarizes the cross-border personal income tax evasion cases' s different point and same point.The chapter will conclude some applicable dilemma every country faces in using pass-through entity to solve the cross-borderpersonal income tax cases,and applicable legal analysis of pass-through entity.The third chapter is providing legislation and specific measures of improvement suggestionsfor our application of pass-through entity to solve cross-border personal income tax evasion cases.The personal income tax law of our country is constantly improving.With the development of our socialist market economy,applicable pass-through entity is bound to be more reasonable and legitimate.I hope this paper can provide some suggestions for China to solve the problem of cross-border personal income tax.