Research On CFC Anti-avoidance Rules For Personal Income Tax

In recent years,the loss of personal income tax in China has been serious.There are many cases of tax avoidance by rich people through various methods.Although the tax authorities have adjusted individual cases,they have no legal basis,and the process of anti-avoidance is difficult and slow.With the development of the Belt and Road,more and more enterprises and individuals have begun to "go global".A large number of individual taxpayers in China have used immigration,offshore companies,etc.to circumvent residents' tax obligations during the process.On the one hand,it violates the principle of tax fairness;on the other hand,it aggravates the erosion of China's personal income tax base.At the same time,China's anti-avoidance process has begun to accelerate.In 2013,China joined the BEPS Action Plan.BEPS provided new ideas for improving China's anti-avoidance framework.In 2018,China began to exchange non-resident financial account information with other countries through the CRS.Tax authorities gradually realized the ability to timely grasp the massive tax-related information of overseas accounts in a timely manner,which cleared technical obstacles for anti-avoidance of personal income tax.In the same year,China carried out the reform of the personal income tax law.For the first time,anti-tax avoidance clauses for individual controlled foreign companies were added.The promotion of the CFC rules on the one hand has discouraged individuals from using offshore companies to avoid tax evasion.The work provided the legal basis.However,it is not difficult to read the CFC rules carefully.At present,the clause still stays at the level of the principle.At present,how to build a scientific,efficient,and complete personally controlled foreign company rules is a subject that needs urgent research.This article focuses on individual CFC rules.First,from the theoretical and practical perspectives,the concepts,theoretical foundations,institutional framework,and the significance of personal income anti-tax avoidance are briefly explained.Secondly,focusing on the individual CFC anti-avoidance rules proposed by the new personal income tax law,by comparing the corporate income tax CFC rules under the same principle system,it is considered that the current personal CFC rules may exist at the legislative level and the supporting system level when directly citing the corporate income tax anti-avoidance rules The problem.Furthermore,from the perspective of international comparison,the individual CFC rules are summarized,and the experience is summarized by drawing on the countries with better individual income tax systems.Finally,based on a comparative study of the CFC anti-avoidance rules system for personal income tax,based on the actual situation in China,we put forward suggestions for improving the individual CFC anti-avoidance rules.