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Research On The Rules Of "prevention Of Treaty Abuse" In China And India Tax Treaties

Posted on:2022-05-08Degree:MasterType:Thesis
Country:ChinaCandidate:J JinFull Text:PDF
GTID:2516306530493334Subject:Science of Law
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The challenge of digital economy and business models to global taxation was put on the agenda by the Organization for Economic Cooperation and Development(OECD)and the Group of Twenty(G20)as early as 2014.The OECD pointed out that,affected by the tax avoidance behavior of multinational companies,the loss of tax revenue can reach nearly 25 trillion U.S.dollars every year in the world.These tax revenue losses could have been used in projects that promote sustainable economic development such as domestic infrastructure construction in various countries.Therefore,it is necessary to legally crack down on the behavior of "base erosion and profit shifting(BEPS)" and cooperate globally..Compared with developed countries,the influence of developing countries on this aspect is obviously greater.Therefore,important developing countries such as the BRIC countries should pay more attention to the BEPS issue when conducting international economic,trade and investment exchanges.In the OECD/G20 BEPS action,an important issue is anti-tax avoidance,and action 6 "preventing treaty abuse" is considered the most important anti-tax avoidance program,so the importance of establishing relevant rules for "preventing treaty abuse" is self-evident Metaphor.China and India(hereinafter referred to as "China and India")are among the top five in the world in terms of gross domestic product and foreign direct investment.At the same time,considering India's application of rules to prevent abuse of the agreement,especially the benefit restriction clauses In use,it is at the world's leading level.Therefore,a comparative analysis of China and India,both of which are BRIC countries,is a reference for the joint cooperation between BRIC countries.The nature of the rules to prevent the abuse of treaties is mainly divided into two types,one is the "general anti-avoidance rules" and the other is the "special anti-avoidance rules".The general anti-avoidance rules are mainly the main purpose test rule(PPT);the special anti-avoidance rules contain more content,mainly the "limitation of interest rules(LOB)",the third method domain permanent establishment preventing abuse rule,and the "beneficial owner" anti-abuse Rules etc.Among them,the benefit limitation rule is composed of the "subjective test" rule and the "objective test" rule.The subjective test content is similar to that of the main purpose test.The objective test includes restriction rules for specific people and specific behaviors.This article attempts to divide the rules for preventing the abuse of agreements into two categories,one is the rules for preventing the abuse of agreements composed of "PPT rules" and "LOB rules".These two rules can be applied to the entire tax treaty,not just for certain sources of income or residents.The other type is composed of the anti-abuse rules for permanent establishments in the third legal domain and the "beneficial owner" anti-abuse rules,which are anti-abuse rules for a certain type of residents or income.This article only discusses the first category,which is a systematic and in-depth study of the PPT rules and LOB rules for "prevention of treaty abuse" in the Sino-Indian tax treaties.This article uses historical analysis,comparative analysis and normative analysis to comprehensively,in-depth and systematically study the rules for preventing treaty abuse in the tax treaties between China and India,and analyze the PPT rules in the tax treaties between China and India.Compared with the specific content of the LOB rule,the similarities and differences of the specific content are compared,and the current tax treaties in the two countries' tax treaties for the prevention of treaty abuse rules may exist in the applicable subjects and remedies,and try to explain the "Implementation" The Multilateral Convention on Tax Treaty Measures to Prevent Tax Base Erosion and Profit Shifting(MLI Convention)addresses the problems of the two countries in coordinating the abuse of the treaty rules,and discusses China and India's abuse of rules to prevent the treaty from the perspective of the BRICS countries The need for coordination and the specific direction.In addition to the introduction and conclusion,this article is composed of the following four main parts.The first part of "the basic content of " prevention of treaty abuse " in tax treaties" re-analyzes the meaning of tax treaties from the perspectives of subject,purpose,and scope,and points out that tax treaties have a more appropriate definition in the context of current international tax exchanges and treaty signing.;Analyzed two common situations of agreement abuse;mentioned the change of the term "prevention of agreement abuse";and introduced the two rules of PPT and LOB of "prevention of agreement abuse".The second part "the main purpose test rules of the " prevention of treaty abuse " in the tax treaties of China and India",expounds the PPT rules in the tax treaties of China and India,and examines its development trends;adopts the "new three-element theory",comparative analysis The "Assumptions","Modes of Behavior" and "Legal Consequences" of this clause.The third part "the rules of " prevention of treaty abuse " in the tax treaties of China and India's interest limitation" expounds the LOB rules in the tax treaties of China and India,and examines its development trends;comparative analysis of the specific content of the rules such as the main body in the assumptions Conditions and behavioral conditions.The fourth part is "The Enlightenment of the " Prevention of Treaty Abuse " Rules in the Tax Treaties of China and India to the Cooperation of the BRICS".It discusses the research on the rules of "Prevention of Treaty Abuse" in the tax treaties between China and India,which can give China-India bilateral Tax treaties will cooperate in this regard in the future.At the same time,since the current cooperation between the BRICS countries on "prevention of agreement abuse" is mainly the MLI Convention,although the current MLI Convention has coordinated this content,there are still problems,such as whether the negotiated terms are used on the PPT.,The MLI Convention only conducted technical discussions,etc.,which may reduce the efficiency of the use of rules.Therefore,it puts forward specific aspects of cooperation between the BRICS countries in preventing the abuse of the content of the agreement.The main conclusions of this article are: China and India have different preferences for the use of "prevention of treaty abuse" rules.China tends to use PPT rules for specific revenues,while LOB rules are rarely used at present;India tends to use the entire taxation system.The rules of "prevent abuse of the agreement" are applied to all income of the agreement,and there is more experience in PPT and LOB.Considering that the LOB rules have greater certainty in practice,and that China and India are both at the forefront of the world's total international direct investment.Therefore,China can refer to India's tax treaties and try to use LOB rules more in the future.In addition,it analyzes the current problems in the tax coordination rules of various jurisdictions under the MLI Convention,and believes that further coordination can be made in terms of capacity building.
Keywords/Search Tags:India, Tax Treaties, Prevention of Treaty Abuse, Limitation on Benefit, Principal Purpose Test
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