Research On The Legal System Of Anti Avoidance About Intangible Assets Transfer Pricing

Base Erosion and Profit Shifting(BEPS)is a hot issue in international tax law circles in recent years.Tax avoidance by multinational corporations through transfer pricing is one of the important reasons for the BEPS.Especially with the advent of the digital economy era,intangible assets have increasingly become an important tool for multinational enterprises to create profits.This has brought difficulties to the traditional transfer pricing anti avoidance legal system.In order to protect China's national tax interests,it is necessary to improve the legal system of anti-tax avoidance of intangible assets transfer pricing.In addition,it is helpful for taxpayers to arrange reasonable tax planning according to the tax law and prevent associated enterprises from destroying the fair environment of the market by this means.Besides,it is helpful for taxpayers to arrange reasonable tax planning according to the tax law and prevent related enterprises from destroying the fair environment of the market by this means.The transfer pricing problem has long been concerned by all countries,and the corresponding tax law has been established to regulate it.However,these traditional laws fail to play a normal role in the field of intangible assets.In the field of transfer pricing tax law,the meaning of intangible assets is easy to distinguish in the field of accounting,and the types involved are more and more with the progress of the times,which has brought great obstacles to the adjustment of tax authorities.Moreover,due to the uniqueness of intangible assets,it is difficult to find comparable uncontrolled transactions,and it is also difficult for tax authorities to obtain information about intangible assets,so the traditional adjustment methods based on the arm's length principle will always encounter many obstacles.Aiming at the current situation and characteristics of tax avoidance in transfer pricing of intangible assets,the international community has to carry out a new round of research on anti-tax avoidance system of transfer pricing.In this case,OECD has launched this research.Based on the original international system of anti-tax avoidance of intangible assets transfer pricing,the research results have made breakthroughs in terms of the definition of intangible assets,ownership,and the refinement of relevant transfer pricing methods.Nevertheless,there are still many difficulties in the anti avoidance of intangible assets transfer pricing.Therefore,efforts should be made to deepen the rules governing the use of existing adjustment methods,explore other adjustment principles and methods,develop the mechanism of prior adjustment,and strengthen the coordination of national tax laws.Along with the development of relevant tax law system in various countries or international organizations such as OECD,China has also actively improved its anti-tax avoidance legal system on transfer pricing.But there is still a big shortage of intangible assets.From the overall legislative level,there is no specific legislation on the transfer pricing of intangible assets,only mentioned in Chapter 6 of the Enterprise Income Tax Law,is listed as one of the related transactions to be regulated.According to the specific provisions in the existing normative documents,the definition of intangible assets in China's customs related tax law is too narrow,which makes some marketing intangible assets of multinational enterprises evade tax.There are still some deficiencies in the regulations on the ownership of intangible assets in our country,so that multinational enterprises can transfer profits by transferring legal ownership of intangible assets.In addition,the existing rules of adjustment in China are too simple,and there are no specific operational guidelines.However,the management system of pre-adjustment measures,such as Advance Pricing Arrangement and Cost Contribution Arrangement,is still imperfect,and relevant legislation needs to be improved.In addition,it is worth mentioning that China has always been concerned about the transfer pricing of intangible assets of multinational enterprises,while ignoring the tax avoidance of natural persons.On August 31,2018,the new tax law introduced a tax anti-avoidance clause,so that the tax authorities can adjust the transfer pricing of individual tax avoidance.However,this clause is only a principled clause,and the relevant supporting legal system of tax avoidance needs to be supplemented and perfected by legislation.Based on the above legislative status in China,China should actively absorb the achievements of International Anti-tax Avoidance System such as OECD transfer pricing guidelines,and improve the relevant tax laws on the definition of intangible assets,ownership,adjustment methods and other aspects.For the problem of individual tax avoidance,we should also actively take into account the experience gained by the existing enterprise income tax law and establish a complete legal system of individual tax avoidance.In addition,China should actively develop other pre-adjustment mechanisms,explore new transfer pricing adjustment methods,and strive to be in the forefront of the world in the field of anti-tax avoidance legislation in the transfer pricing of intangible assets,so as to gain an active position in the era of tax internationalization.