Study On Transfer Pricing Tax Avoidance Of Multinational Corporations In China And Anti-avoidance Strategies

With the obvious globalization of economic trends,there have been a large number of multinational companies in the international community.The multinational groups' investment in the sub-branches is extremely important for a country's economic progress and growth.However,multinational groups usually adjust the charges,which should be taxed in the country of high tax rate,unreasonably in the parent company,subsidiary companies and other related enterprises for the global business strategic objectives.Thereby,it could reduce the tax burden of the entire group.With accession to the WTO,multinational companies gradually stationed in China as production market.Although foreign direct investment(FDI)has shown an upward trend in recent years,there are still illusions of long-term losses.It seems to transfer profits through the transfer pricing.In addition,compared to mature developed countries,China has some laws and regulations about the transfer pricing,but the construction of anti-avoidance tax system is still not perfect,which is difficult to guide the operation.This phenomenon not only forms an illusion of poor investment environment in our country,but also causes serious loss of tax.Therefore,it is necessary to analyze the behavior of multinational corporations and put forward the specific anti-tax avoidance suggestion.The paper explains the significance of studying the topic.On the basis of introducing the concept and the theory of transferring price,its makes a quantitative analysis of the total value of import and export commodities,import and export trade,trade growth and difference,investment in China and the operation of foreign-invested enterprises from 2001 to 2015,and summarizes the problems of China's transfer pricing anti-tax avoidance.Then it sets up a game model and continuously expand the assumption to make it more close to the practice of transfer pricing analyzing the strategy of anti-avoidance in tax collection.And then it compares different countries to transfer the pricing tax system,learning from the mature anti-avoidance experience.Finally it puts forward advice against multinational corporation's transfer pricing in China.