Analysis Of Reasonable Tax Avoidance Methods For Enterprises

　　 register Analysis of reasonable tax avoidance method for tax tutors' examination and guidance Enterprises

So-called tax avoidance Refer to enterprise In order to maximize profits and minimize tax burden, we should study differences between tax laws of various countries and plan personal or group internal financial tax saving plans to avoid paying taxes.

Foreign funded enterprises have their secret recipe for tax avoidance. Although tax avoidance violates the intention of tax legislation and runs counter to the government's tax policy guidance, tax avoidance is not illegal, and there is a reasonable tax avoidance in law. Because of this, many foreign enterprises take various kinds of recruitment to achieve the purpose of reasonable tax avoidance.

　　 transfer pricing

Miss Zhang, a KPMG accounting firm, disclosed that when they were auditing foreign enterprises, they often encountered some tax avoidance methods which were not perfect by the existing Chinese tax laws.

Miss Zhang, for example, said that during her audit, she encountered a manufacturing enterprise with headquarters in foreign countries. The headquarters was interested in raising the cost of raw materials and increasing liabilities. If the price unchanged, the revenue would be reduced or even lost. After losing money, it would increase investment. This practice is called "transfer pricing" by the auditors. The practice of "long losing" is also popular among many foreign enterprises.

Transfer pricing is an important means for modern enterprises, especially multinational corporations, to borrow international tax avoidance. In modern economic life, many tax avoidance activities, whether domestic tax avoidance or international tax avoidance, are related to transfer pricing. They tend to reduce the overall tax burden on international associated enterprises by selling goods and distribution costs from low tax countries or tax shelters to low tax countries or tax shelters, or selling goods and distribution costs at higher internal transfer prices from low tax countries or tax shelters to high tax countries.

　　 High interest rates on loans

The use of know-how and other intangible assets is higher than the international market price or hidden in the price of equipment. Foreign businessmen take advantage of people's ignorance of the true price of equipment and technology, raise the price of equipment and technology transfer, and transfer the profits of enterprises abroad. While raising the price of the equipment, they hide the transfer price of the technology in the price of the equipment to avoid the withholding tax payable on the royalty income.

The standard of labor service charges is "high and low." The provision of services or services between affiliated enterprises is usually high fees for overseas companies, and domestic companies charge low or even no charge. Some companies also falsifying the cost of offshore companies.

Assets assessment improves depreciation

Miss Chang once met a Hongkong company and assessed its real estate value every year. Because of Hua Zi's merger with Hongkong's parent company, she also had to assess its real estate in China. This is also an effective way for foreign capital to avoid tax. If the value added of real estate appraisal increases, the annual depreciation will increase correspondingly, and the tax will naturally decrease correspondingly.

　 International tax avoidance and construction company

The reporter also learned from a Miss Chen who worked in an enterprise in Taiwan that registration in a tax haven is also a way. They also used the same method there. Establish a company in an international tax haven, and then conduct business and financial operations with companies in other places through tax havens, transfer profits to tax shelters, and reduce taxes by tax avoidance or low taxes on tax shelters. In the Yangtze River Delta region, some foreign investment enterprises come from the British Virgin Islands and other places, and in fact, they may have only one office on the island.

Using tax haven to avoid tax is one of the means to reduce tax burden and increase revenue for multinational taxpayers, and maintaining the effectiveness of taxation system in raising national financial funds is also one of the important tasks faced by tax authorities in various countries. With the continuous use of tax haven by multinational taxpayers, the tax rights and interests of the state have been constantly damaged, and the tax revenue has been affected, and the fair principle of Taxation has been damaged accordingly. Therefore, many countries, especially the developed countries, pay special attention to how to prevent transnational investment operators from using tax haven to engage in tax avoidance activities.

　 Other methods emerge in endlessly.

Another main way for foreign companies to avoid tax is to use related party transactions to get higher and lower. This means accounting for more than 60% of tax avoidance. In addition, more than 60% of foreign capital invested in China is loan funds. Even some powerful international companies are borrowing large amounts of capital from banks both inside and outside the country to make use of the tax interest at the forefront, so as to achieve less or no enterprise income tax purposes.

Anti tax avoidance involves all sectors of social and economic life. The incompleteness of the tax system and the inconsistency between regions and departments are the objective reasons for tax avoidance. Experts pointed out that we should improve and strengthen the existing tax system from two aspects of tax law and collection and administration. First of all, the current foreign-related tax law stipulates that foreign invested enterprises enjoy different tax policies with domestic funded enterprises, which provides a large space for legal avoidance. Only when the income tax of domestic and foreign enterprises is merged can we further improve the tax law and strict collection and management, and lay a good foundation for avoiding tax avoidance. Otherwise, the two sets of tax systems are very arbitrary at present.

Secondly, the collection and management. In terms of collecting and managing means, we must keep up with the information control of computers, and also involve export tax rebates and tax fraud. It requires that customs, foreign trade departments and tax authorities should be able to communicate quickly with each other in three aspects. There is still a gap between these areas and the international community, which needs further improvement.