Research On The Legal System Of Preventing Tax Avoidance In Transfer Pricing Of Intangible Assets

With the development of the economic globalization,science and technology have been advancing,the tax avoidance behavior of the transnational corporations is more inclined to conceal and diversify,and the generalization of transfer pricing behavior leads to the more severe consequences of tax avoidance.The rapid progress of the science and technology makes the intangible assets more diversified,which have created huge profits for the transnational corporations.Meanwhile,and the particularity of intangible assets makes it possible for the transnational corporations to transfer profits more covertly,so as to reach the purpose of minimizing the tax burden.In order to maximize the benefits,the transnational corporations continue to conduct transfer pricing of the intangible assets on a global scale,which cause great harm to the tax interests of various countries.Therefore,the tax avoidance behavior of the transnational corporations to transfer pricing of the intangible assets has received wide concerns.In order to safeguard the country’s tax interests and establish more complete international tax rules,the Organization for Economic Co-operation and Development(OECD)has launched the Base Erosion and Profit Shifting(BEPS)Action to provide effective guidance to countries in addressing the issue of tax avoidance in transfer pricing of the intangible assets.Based on the discrimination and analysis of the concepts related to the transfer pricing of intangible assets,this paper has carried out in-depth analysis on transfer pricing of intangible assets from the four aspects of adjustment method,pre-adjustment mechanism,after-the-fact adjustment mechanism and punishment mechanism,international coordination and cooperation,and summarized the shortcomings of China in the field of preventing transfer pricing tax avoidance of intangible assets,such as the lack of targeted and operability of the transfer pricing adjustment method of intangible assets,the lack of pre-adjustment mechanism,the lack of after-the-fact adjustment and lighter punishment,and the lack of close international cooperation.Meanwhile,on the basis of absorbing and drawing lessons from the experience of anti-tax avoidance in transfer pricing of intangible assets,the corresponding suggestions were put forward for the existing problems in the transfer pricing of intangible assets in China.This paper has mainly focused on five parts:Part one is the introduction,introducing the research background and problems faced by this paper,and summarizing the existing relevant research literature,the innovation points and the deficiencies;In the second part,in terms of the transfer pricing of intangible assets,the legal analysis of its regulating tax avoidance system was discussed from the concepts of the intangible assets,the concepts of transfer pricing and its general form,and the anti-tax avoidance law theoretical basis was analyzed,revealing the the necessity for its anti-tax avoidance;In the third part,centering China’s anti-tax avoidance legal system in transfer pricing of intangible assets,the current predicament that China was facing was expounded from four aspects of the intangible assets transfer pricing adjustment method,pre-adjustment mechanism,after-the-fact punishment and international cooperation;Part four has described the current situation and experience of the extraterritorial anti-tax avoidance in transfer pricing of intangible assets from four levels,accumulating experience for the follow-up suggestions;In part five,the clarification and refinement of the adjustment methods in transfer pricing of intangible asset,the improvement of the pre-adjustment mechanism,the increase of the after-the-fact tracing and punishment,and the strengthening of the international cooperation were put forward,so as to improve China’s anti-tax avoidance law in transfer pricing of intangible assets.