Study On The Regulation Of Treaty Abuse In Post-BEPS Era

The development of economic globalization and the free flow of production factors have magnified the harm of profit-driven capital.This has brought a series of economic problems to the international community,including erosion of the tax base of sovereign countries and the imbalance of international taxation orders.In response,the Organization for Economic Co-operation and Development(OECD)launched the Action Plan on Base Erosion and Profit Shifting(BEPS)Project with the help of the Group of Twenty(G20)in 2013.The tax system responds to the challenges posed by multinational corporate tax base erosion and profit transfer to governments' fiscal revenues and international tax fairness.On October 5,2015,the OECD issued fifteen output results of the BEPS Project;on November 24,2016,the OECD issued the"Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS"(The "BEPS Multilateral Convention" aims to revise bilateral taxation agreements through multilateral tools and rapidly implement the results of the BEPS Action Plan.It has achieved the largest and most extensive multilateral cooperation and coordination in the history of international taxation.On the issue of preventing tax treaties abuse,action 6 of the OECD/G20 BEPS Project identifies treaty abuse,and in particular treaty shopping,as one of the most important sources of BEPS concerns.Action 6 of BEPS(BEPS 6),Preventing the Granting of Treaty Benefits in Inappropriate Circumstances,proposes a series of new treaty anti-abuse rules,advocating that countries implement at least minimum standards to ensure treaties adopt effectively addresses treaty abuses along the lines of this report.With the signing of the "BEPS Multilateral Convention",signatories(except Norway)submitted a tentative list of reservations and notifications,which showed the parties' choices and attitudes towards the treaty anti-abuse rules.In recent years,China has fully participated in international tax reform,attached great importance to the implementation of BEPS Project,and issued regulations and normative documents to strengthen the anti-tax avoidance management such as the"General Anti-Tax Avoidance Measures(Trial)"(2014).Otherwise,the new signing of double taxation treaties with Russia,Chile and so on has included provisions to prevent tax treaties abuse.At the same time,China's position in the BEPS Multilateral Convention on the prevention of tax treaties abuse has generally followed the current new negotiations and re-negotiation of tax treaty positions,adopting the principal purpose test,and meeting the minimum standard recommended in the BEPS 6.In this context,study on the regulation of treaty abuse in post-BEPS era is of great significance for the improvement of the discoursive power of the formulation of rules and the protection of tax benefits.This article consists of an introduction and four parts.The first part of the text begins with the concept of tax treaties abuse,analyzes the practice of the traditional tax treaties abuse and its predicament The second part mainly introduces the BEPS Project advocated by OECD and the new development of BEPS Multilateral Convention on the tax treaty abuse,including the changes in the pattern of tax treaty abuse,the determination of minimum standards,and the innovation of the anti-abuse clause combination model.The third part introduces the impact of BEPS 6 and the"BEPS Multilateral Convention" on the abuse of national taxation agreements.It is mainly divided into two options,the PPT model and the LOB model,and the impact of the convention on the unsigned country-the United States.The last part,based on the analysis and summary of China's current system,studies the impact of treaty anti-abuse rules on China's relevant laws and international investament,and puts forward sound suggestions.