Dissertation > Political, legal > Legal > International law > International Economic Law > International Tax Law

Anti-corporate tax -avoidance legislation

Author JiaMinMin
Tutor ChenZhi
School Southwest University of Political Science
Course Economic Law
Keywords Taxpayer International anti-avoidance Tax authorities Avoidance phenomenon Tax avoidance Associated enterprises Transfer Pricing Substantive principles of taxation Preferential tax policies Thin capitalization
CLC D996.3
Type Master's thesis
Year 2006
Downloads 399
Quotes 2
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With the deepening of China’s reform and opening-up, and the development of socialism market economy, the problem has been already more and more serious that corporations avoid income tax. This gradually inaeasing phenomenon causes great loss of the tax revenue in our country. It has violated the principle of tax equity and influenced the sound development of market economy severely. How to improve tax law and make up loopholes, has already become a important problem demanding prompt solution in the evolution of market economy of our country at present.The first part of this essay concentrates on describing the basic problems of avoiding tax payment of duty. It defines the concept of tax avoidance from the views of the form and result of behavior, just like this: taxpayers make use of the loopholes of tax law or the difference between tax systems, to reduce or escape the obligation of paying tax in legal form. There are three kinds of theories about the legal character of tax avoidance. They are the theory of violating the law, obeying the law and evading the law. This text analyzes the theory of violating the law in terms of jurisprudence, and applies the principles of tax law to the field of anti-tax avoidance. These principles have offered the support in theory for punishing corporate tax avoidance. Additionally, on the basis of analyzing harmfulness of evading tax, the writer puts forward the necessity of anti-tax avoidance.The second part introduces the current situation and summarizes the experience of legislation of anti-tax avoidance in the world. Various countries utilize domestic legislation and international coordination to prohibit tax avoidance. They all formulate a set of quite complete system of anti-tax avoidance. The measures they take have already become more and more institutionalized and legalized. This system includes Transfer Pricing Taxation, Anti-tax Haven Measures, Thin Capitalization and Anti-abuse Tax Treaty.The third part describes the practice of preventing corporations avoiding income tax, analyzes subjective motive and objective reasons which let corporations avoid tax. To chase the profit is the fundamental reason. The important reasons which lead to avoiding corporate income tax are incomplete

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