Indirect Taxation In Investment And China's Countermeasures

Indirect expropriation is a controversial issue in current international investment law.Due to the hidden means of indirect expropriation,there are many inconsistent standards for determination and compensation in legal provisions and practices.In addition,the expansion of the jurisdiction of the arbitral tribunal and the fragmentation of the bilateral investment agreement make it more complicated and confusing,and the game between the interests of investors and the interests of the host country becomes increasingly fierce.These vague standards bring two kinds of risks to China.One is that Chinese investors are expropriated by foreign governments when they invest abroad.Second,our government's reasonable control measures are accused of indirect expropriation.In order to clarify the indirect tax theoretical level and practical level of blur problem,this paper USES the case analysis,comparative analysis and literature analysis about the cognizance of indirect tax standard and compensation standard,thedispute settlement mechanism is summarized on the international practice and special circumstances,at the same time found in domestic law on the improvement of the existing problems and puts forward corresponding Suggestions.The first chapter mainly introduces the sources,concepts,characteristics,forms and causes of expansion of indirect expropriation and the basic contradictions involved in indirect expropriation.The second chapter is the basic theory and practice of indirect expropriation.This part,combined with cases,respectively introduces and analyzes the identification theory,compensation theory and dispute settlement mechanism of indirect expropriation.The first is the identification theory of indirect expropriation,including single effect standard,single purpose standard,effect and purpose consideration standard under the principle of proportion,and effect and purpose consideration standard under the weight theory.Then it is the compensation theory of indirect expropriation,including the theoretical basis and standard of compensation.Finally,there are problems and countermeasures in the dispute settlement of indirect expropriation.The third chapter is mainly about the deficiency of China's regulations on indirect expropriation.At the level of domestic law,we mainly understand and read the provisions on indirect expropriation in the foreign investment law,which mainly have the following deficiencies: the formand scope of foreign investment are not clear,and the constitutive elements,identification standards,compensation standards and scope of public interests of indirect expropriation are not clearly defined.The deficiencies in China's bilateral investment treaty mainly include: the lack of operability of the identification standard of indirect expropriation,unclear provisions on compensation standard and time for compensation,imperfect exceptions,indirect expropriation caused by unclear provisions on the relationship between the old and new investment treaties,and excessive litigation of indirect expropriation caused by the expansion of the jurisdiction of the arbitral tribunal.The fourth chapter puts forward some Suggestions to solve the problems in domestic legislation and bilateral investment agreement.The foreign investment law that our country just passed needs to make clear the form and scope of foreign investment as well as the relevant provisions of indirect collection through supporting laws and regulations.The problems existing in the investment agreement for China respectively put forward the perfect Suggestions: strengthen the indirect tax standards of operability,make clear a regulation indirect expropriation and compensation standard and compensation time,improve the exception of indirect tax regulations,clear the relationship between the old and new investment agreement,the indirect tax scope of arbitration and create rampant litigation mechanism of prevention and control.