The Research On Legal Problems In China's Implementation Of BEPS Project

The base erosion and profit shifting(BEPS)project aims to strengthen international cooperation to combat tax avoidance by multinational companies then establish a new international taxation system.China,as a party,participated positively by implementing the four minimum standard measures with the most influence in the project through tax legislation.However,the inherent legal limitations of the BEPS project and the deficiencies in China's localization of the four BEPS projects determines that it is difficult for China to achieve all the project's preset goals in the near future.For the BEPS project,the basic principles of international tax law are not work,the specific principles are invalid,silent,and dislocated,fundamentally restricting the project's effectiveness,while the soft law nature will be influenced by tax sovereignty as well as political forces.For the China implementation results,the narrow exchanging scope of the tax rulings restricts tax authorities from obtaining information;the rules to avoid treaty abuse may damage the interests of Chinese multinational companies;the legislation for country by country report is different from the OECD template,which may cause practical problems;the failure to introduce compulsory arbitration determines the deadlock of the mutual agreement procedure is still there.All of the above adversely affect the BEPS project results in China.In response to these limitations,China shall first bear in mind that the parties are cooperatives,and take systematic,comprehensive,and innovate ways.Second,for the specific implementation process,China should base it on national conditions and the big country strategy,promote to set new principles,develop the implementation rules actively,as well as constantly update the implementation results,to safeguarding national interests,while enhancing China's international influence.