Font Size: a A A

Study On The Legal Regulation Of BEPS Multilateral Convention To Prevent The Abuse Of International Tax Treaties

Posted on:2021-05-31Degree:MasterType:Thesis
Country:ChinaCandidate:S D LiFull Text:PDF
GTID:2416330602973532Subject:International Law
Abstract/Summary:PDF Full Text Request
The international tax treaty that generates at a certain stage of economic development plays an important role of removing double taxation and facilitating the economic development of nations.Facing the continuously expanded global tax treaty network,some multinational taxpayers manipulate the difference of tax system between countries to reduce or evade the obligation to pay tax,which not only erodes the tax base of each nation and cut down the global tax burden to a maximum degree,but also disrupt the international taxation order.In 2013,the Organization for Economic co-operation and Development(OECD)launched the Base Erosion and Profit Shifting action plan(BEPS).In Action 6Prevention of tax treaty abuse,it proposes suggestions to avoid improper benefits granted under the tax agreement,including the principal purpose test(PPT)and limitation on benefits(LOB).In order to foster the implementation of the BEPS,the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting(“Multilateral Instrument” or MLI)that entered into force on 1 July 2018 transposes results of BEPS Project into bilateral tax treaties and implement agreed minimum standards to counter treaty abuse so as to flexibly accommodate problems such as base erosion.China as one of the first contracting counties decided to amend or add provisions of PPT into bilateral treaties to address various kinds of treaty abuse.In such case,studying provisions to counter treaty abuse in MLI is significant to improve the ability of addressing tax evasion and facilitate international business.This paper consists of the introduction and the main body of four parts.The first part introduces the definition of global tax treaty abuse,analyzed the cause of such abuse,and briefed the updates of OECD BEPS Project,such as the agreed minimum standard and combinations of treaty abuse models.The second part studied the major content and applicable range of PPT and LOB based on provisions to counter treaty abuse in MLI and explored existing problems in PPT and LOB as well as their relations.The third part presented current practice of provisions to counter treatyabuse by comparing the similarities and differences between PPT of the EU and MLI and discussing the practice and development of them in China.The last part further analyzed the influence of MLI on China's tax treaties and international investment.Based on our state conditions,this paper proposed that China should adopt a new mode to counter treaty abuse with PPT as the dominant and LOB the supplement.Amendment suggestions were also put forward concerning PPT and LOB to accommodate them to the requirements of our economic development.
Keywords/Search Tags:Base Erosion and Profit Shifting, Treaty Abuse, Principal Purpose test, Limitation on Benefits
PDF Full Text Request
Related items