Research On Anti-tax Avoidance Of Non-resident Enterprises Indirect Share Transfer

As the process of economic globalization has gradually accelerated,capital flows in the form of equity transfer have become more frequent.Especially after the tax reform in 2008 and the preferential policies for foreign-invested enterprises have expired,foreign investors have chosen to transfer assets through equity transfer.Indirect transfer of equity by non-resident enterprises is not easy to be discovered by tax authorities because of its hidden nature.In addition,the lack of theoretical and practical experience of Chinese tax authorities in the field of indirect transfer of equity has made it one of the most difficult points in China’s anti-tax avoidance field.Based on the theory of indirect transfer of equity for non-resident enterprises,this paper analyzes the case with the current tax regulations,and then finds the problems and difficulties in the indirect transfer of the existing tax system in non-resident enterprises in China,and proposes solutions in a targeted manner.The paper uses the combination of literature analysis and case analysis to analyze the problems existing in the indirect transfer of equity anti-tax avoidance tax system for non-resident enterprises in China and proposes corresponding solutions.In addition to the introduction and conclusion,this article is divided into four chapters.The first chapter mainly introduces the theory of indirect transfer of equity by non-resident enterprises,including the definition of basic concepts,the conceptual difference between direct transfer and indirect transfer and tax treatment,the tax avoidance mechanism of non-resident enterprises indirectly transferring equity,the classic model of tax avoidance and Issues related to the taxing rights of indirect transfer of equity by non-resident enterprises.The second chapter mainly introduces the status quo of tax avoidance in indirect transfer of equity and anti-tax avoidance by government.The first part mainly introduces the current situation and the reasons behind the frequent transfer of equity in non-resident enterprises in China,and the necessity of regulation in China.The second part mainly introduces the development and status quo of indirect transfer of anti-tax avoidance policies in China,the status quo of collection and management and implementation.The third chapter is mainly for case analysis.This paper selects the McDonald’s(China)Co.,Ltd.renamed tax case as an analysis sample,clarifies the relationship change resulting in the change of name of McDonald’s(China)Co.,Ltd.and the reason why McDonald’s Group sold its management rights in mainland China and Hong Kong.The key point is to conduct a reasonable commercial purpose test on the transaction to determine whether the transaction has a reasonable commercial purpose,in accordance with the Announcement No.7 of 2015.The last part of this chapter mainly expounds the problems existing in the indirect transfer of equity in China’s current tax system through case analysis.The fourth chapter is mainly about policy suggestion.It includes improving criteria for further clarifying reasonable commercial purposes,improving the indirect transfer of the equity tax law system for non-resident enterprises and establishing a tax-related information exchange mechanism.