International Tax Avoidance Case Study

For issue (2): international tax avoidance in transnational electronic commerce

What is international tax avoidance?

International tax avoidance refers to the behavior of transnational taxpayers using two or more than two international tax laws and international tax agreements, loopholes, exceptions and defects, to avoid or reduce their total tax obligations. Tax is the tax system of the state to the taxpayer (tax subject) and the object of tax collection (tax object). Therefore, to avoid tax, it is to avoid becoming the subject of tax and the object of tax. For the international tax avoidance, generally need through the country for domestic tax laws and tax treaties made corresponding supplementary provisions, the improvement of tax laws

Reasons for international tax avoidance (1) the strong desire to pursue the maximization of the interests of multinational taxpayers.

(2) the differences of the tax system, such as the different application of the tax jurisdiction, the objective basis for the tax revenue of various countries and the level of the tax rate, the different forms of tax rates.

(3) with the rapid development of the global and regional economic integration, international economy increasing communication activities, national tax legislation can not keep up with the pace of the economic development will inevitably lead to some transnational taxpayers to the vulnerability gap.

(4) the differences between countries to avoid international double taxation, different methods will make the taxpayer tax burden imbalance, such as the international tax law, the tax credit and the credit law and so on. Fourth, the difference between the level of collection and management of other countries and other non tax factors. Because the tax authorities and officials of various countries impose different management level, it will lead to different tax burden of taxpayers, resulting in international tax

Such as the law on the administration of tax collection, the Internet to carry out the business of the company and other companies should comply with the same tax; e-commerce operators must apply for tax registration, the tax take platform withholding, enabling electronic invoice.

(3) strengthen international cooperation in tax administration

Economic globalization is the trend of world economic development in the future, to carry out bilateral or multilateral information exchange, to strengthen the exchange of international intelligence,. To expand the tax supervision and cooperation with relevant countries, to grasp the economic activities of transnational enterprises in a timely manner, in the formulation of relevant electronic commerce tax policy, should coordinate the international relevant laws and regulations.

(4) take effective measures to strengthen the supervision of electronic commerce enterprises.

Establish filing system. In the initial stage of development of electronic commerce, strict tax registration, timely reporting of E - commerce business scope, its will through the network of services and products, sales, separate accounting electronic business operators, will and e-commerce related materials submitted to the tax machine, in order to facilitate the monitoring of tax