Examples Of International Tax Avoidance

1375 Words6 Pages
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
…show more content…
(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 avoidance.
No matter what the reason of international tax avoidance, but the consequences are very serious.(Baidu,
…show more content…
(2) the main body of concealment
Traditional e-commerce transaction subjects are determined and are registered by the departments of industry and commerce, and taxation of corporate, and e-commerce operators is virtual enterprise based on network. These networks of enterprises is no longer complete economic entities in traditional legal sense, they shouldn't have the qualification of independent legal entities, they can be in both the buyer and the seller in met for a variety of business activities and online electronic payment of a business model.
(3) the universality of the
Open Document