Research On Assistance Of State Administration In Multinational Corporations’ International Tax Avoidance

In the process of economic globalization,the international tax avoidance of multinational corporations has become an important issue in the field of international tax law with the increasing number of multinational corporations.To achieve double non-taxation,multinational corporations often carry on tax revenue planning with the exploitation of the conflicts of rules in different jurisdictions,which can be called international tax arbitrage.This kind of behavior has seriously damaged the fairness of international taxation.Therefore,the international community has always paid great attention to it and has taken a series of countermeasures to regulate it.In the past,academics habitually focused on the multinational corporations when studying the international tax avoidance of multinational corporations and tried to regulate their tax revenue planning and improve the consistency of the international tax system.However,they ignored the phenomenon that a national tax administration in one jurisdiction may consciously assist the multinational corporations to avoid taxes in other jurisdictions.The "LuxLecks Affair" has caused an uproar of the international community.This incident shows that the Luxembourg tax authority have assisted multinational corporations to artificially create some non-existent international tax arbitrage opportunities or provide some conveniences to better use the existing international tax arbitrage forms by signing secret tax rulings with these multinational corporations.If we do not pay attention to this kind of behavior and continue to let this spread,then the tax authorities of various countries can learn from the behavior of Luxembourg tax authority to assist multinational companies in tax planning.All tax sovereign countries may face increasingly serious problems of base erosion and profit transfer,and the international tax order will suffer further damage.Therefore,this paper will focus on the assistance behavior of government tax authorities in the international tax avoidance of multinational corporations,and analyze how they assist multinational corporations to artificially create available international tax arbitrage opportunities or better use the existing international tax arbitrage forms by signing secret tax rulings.In the end,it will give relevant advices on how to regulate such behavior.The paper is divided into four parts.Part one mainly makes a brief introduction of international tax arbitrage.Part two discusses the specific ways that the tax authorities used to assist multinational corporations to avoid taxes in other jurisdictions based on the tax rulings signed by Luxembourg tax authority.Part three introduces the measures and rules adopted by European Union and OECD to regulate the assistance activities of national tax authorities and analyzes their shortcomings.Part four makes some suggestions on how to further improve the relevant rules.