Research On The Improper Tax Avoidance In Transfer Pricing Of Multinational Corporations In China And China's Anti-tax Avoidance Strategy

The process of economic globalization has been accelerating,and the international economic and trade contacts are becoming more and more frequent after China's entry into the WTO.China has become the first choice for foreign direct investment.In China's Direct investment multinational corporations has played an important role in the economic development of China.However,due to the difference in tax system,in China,the multinational corporations in China through their own favorable conditions through related transactions,the use of transfer pricing means to avoid tax avoidance,reduce the tax base,transfer profits,seriously damage our economic interests and international balance of payments,and the healthy development of China's economy and international reputation also caused adverse effects,from the back to avoid.From the point of view of Taxation,it is of great theoretical and practical significance to study the inappropriate tax avoidance behavior of multinational corporations in China and improve our anti avoidance strategy.This paper summarizes and analyzes the domestic and foreign research status of transfer pricing,improper tax avoidance and anti tax avoidance,and defines the concepts of transfer pricing,tax base erosion,profit transfer,improper tax avoidance.From two aspects of tax and non taxation,this paper analyzes the motivation of transfer pricing in China's transnational corporations and analyzes the cost and market in China.The transfer pricing method of multinational corporations,from three aspects of investment,operation and loss,analyzes the current situation of transfer pricing mispricing in Chinese transnational corporations,analyzes the harm to our country from the aspects of transfer profit,tax revenue,economic order,international balance of payments and social welfare,and summarizes the current situation of anti tax avoidance in China;from laws and regulations and relations.The international anti tax avoidance experiences in OECD,the United States and Japan are summarized and analyzed in the aspects of enterprises,adjustment methods,proof and punishment,compensation adjustment,information disclosure and so on.The game analysis model of the misallocation of tax avoidance for transfer pricing in China and the anti tax avoidance of China's tax authorities is constructed,and the three aspects are cost,punishment and probability.In view of the transfer of improper tax avoidance in China's transnational corporations,the strategy of anti tax avoidance in China is put forward,including perfecting the transfer pricing system,perfecting the system of reservation and pricing,establishing the idea and method of anti avoidance,setting up the anti tax avoidance professional team and strengthening the international anti avoidance tax cooperation.