Research On "Reasonable Commercial Purpose" In Indirect Equity Transfer Of Non-resident Enterprises

With the continuous development of economic globalization,China's total economic total is second in the world,and international economic exchanges are becoming more and more frequent and close.Many large multinational companies and individuals with high assets usually use the Off Shore Company as a financial tool to invest in our country.Through such a shareholding structure,non resident enterprises can conduct indirect equity transfer transactions,evade paying corporate income tax,resulting in a large number of tax losses and seriously damage our tax sovereignty.To this end,the State Administration of Taxation on the basis of general anti avoidance provisions,for non resident enterprises indirect equity transfer behavior have been introduced to the State Administration of Taxation issued 2009 No.698(hereinafter referred to as No.698),the 2015 seventh announcement of the State Administration of Taxation(hereinafter referred to as the number of Public Announcement No.7).Announcement No.7 No.698 successive determination of the reasonable business purpose of refinement,but the current regulations are still relatively simplified,specific performance in Announcement No.7 on the main value,the main investment does not provide a general scope;the relevant provisions of the real economic is too general;when the tax benefits and non tax benefits exist at the same time.How to judge,and not clearly defined;transaction substitutability test is of no real significance.These problems make the non resident enterprise indirect equity transfer "reasonable commercial purpose" that the distance of tax legislation "standard" specific and clear tasks as well as the larger gap,is not conducive to the objective judgment on "reasonable business purpose",also led to the tax authority has great discretionary power in practice operation.This paper uses literature research,logical analysis and other methods to analyze the combination of theory and case,indirect non resident enterprise equity transfer problems,that needs to be refined on the related factors of reasonable business purpose "certification,and on the basis of the comprehensive factors to be grasped from the whole;in the process of recognition of taxation the information asymmetry and unavoidable problems such as subjectivity,reasonable allocation of the burden of proof,a clear preponderance of the evidence standard of proof;perfecting the tax adjustment system,standardize the tax law enforcement organs.In addition to the introduction and conclusion,the research content of this paper is divided into four parts:Part one: the case of Children's Investment Master Fund.It is a brief introduction and analysis of a typical non resident enterprise indirect equity transfer case,which leads to the core problem of anti tax avoidance operation is the identification of reasonable business purpose.The second part: the theoretical basis.Through the analysis of substantive taxation,protection of taxpayers' rights and information asymmetry,and provide theoretical support for the identification of the reasonable commercial purpose of non resident enterprises in indirect equity transfer.The third part: the provisions and difficulties of the "reasonable commercial purpose" in the indirect equity transfer of non resident enterprises.According to the current regulations,it is found that the indirect equity transfer of non resident enterprises has the problem of reasonable commercial purpose.The fourth part: the improvement of the "reasonable commercial purpose" in the indirect equity transfer of non resident enterprises.According to the problems identified in the "reasonable commercial purpose",the proposal to improve the "reasonable commercial purpose" is put forward.