Research On Anti Abuse Of Tax Treaties

International tax treaties are divided into multilateral tax treaties and bilateral tax treaties.They are written tax agreements that are legally binding on all Contracting States through friendly consultation between countries in order to coordinate the conflict of jurisdiction caused by the transnational income or property income of transnational taxpayers.As of April 2020,China has entered into 112 tax treaties and arrangements(the agreements signed between countries and regions are called tax arrangements).The purpose of tax treaties is to help cross-border taxpayers avoid double taxation.However,there are some taxpayers with ulterior motives who try to use the loopholes of the agreement,the loopholes of national laws and the obstacles of information exchange to achieve their purpose of double non taxation or avoiding the tax burden they should bear.This is protocol abuse.Every year,due to the huge tax loss caused by treaty abuse,it is urgent to anti treaty abuse.The international community has been committed to regulating the abuse of treaties.The latest progress is the Multilateral Convention on the implementation of measures related to tax treaties to prevent tax base erosion and profit transfer(hereinafter referred to as MLI Convention)issued by OECD in 2016.The Convention puts forward three schemes to meet the minimum standards for anti abuse of treaties in various countries.China chooses the main purpose to test this scheme,As the main anti abuse regulation means,it is used to meet the minimum standard to prevent the abuse of the agreement,but no further implementation rules have been issued.In addition,the main purpose test gives the law enforcement agencies great discretion.Therefore,there may be disputes when the main purpose test is applied in our country.If we want to give full play to the due role of the main purpose test clause,China still needs to constantly improve the main purpose test rules in legislation and law enforcement.Since most countries choose to adopt the scheme of main purpose test,the main purpose test will be the international mainstream regulation means of anti agreement abuse in the future after countries declare the entry into force of multilateral conventions.As a country that has signed a large number of tax treaties,the regulation of treaty abuse is also a problem worthy of attention.Therefore,this paper chooses the main purpose test as the perspective,discusses in detail the development of the main purpose test at home and abroad,and intuitively shows the application of the main purpose test in practical cases combined with cases.In order to improve the current situation of anti abuse of tax treaties in China,this paper puts forward some suggestions from the perspective of main purpose test,in order to provide some help for the construction of anti abuse system of tax treaties in China.