Study On Anti-avoidance On Hybrid Mismatch Arrangements

The concept of a hybrid mismatch arrangement is that the taxpayer uses different taxation differences in different countries to cause different tax treatments for the same entity or financial instrument,which in turn causes a double deduction or a deduction of one amount and the other party does not count the result of the mismatch of income.Through this means,enterprises attempt to achieve the overall dual non-taxation purpose,which will cause global tax base erosion.Due to the complexity and concealment of the means of hybrid mismatch arrangements,Solving the problem of hybrid mismatch arrangements is becoming a difficult thing for countries.The second part of the OECD's BEPS Action Plan is to eliminate the impact of hybrid mismatch arrangements,and the OECD has put forward a series of recommendations and methods.Although the tax avoidance of hybrid mismatch arrangements is not the most important part of China's anti-tax avoidance,with the globalization of the economy,China's financial industry is also booming,and enterprises are more likely to use hybrid mismatch arrangements for cross-border tax avoidance.So we must pay attention to anti-hybrid mismatch arrangements.China started late in eliminating hybrid mismatch arrangements.Although China is guided by the OECD's BEPS action plan,it cannot be completely copied.We should also continue to improve the level of eliminating hybrid mismatch arrangements in light of national conditions.This paper first introduces the basic theoretical knowledge related to mixed mismatch?defines the concept of mixed mismatch and the three types of mixed mismatch and emphasizes the importance and necessity of eliminating mixed mismatch arrangements.I also elaborate on the tax theory related to the elimination of hybrid mismatch arrangements.The following article analyzes the current situation of the use of hybrid mismatch arrangements in China and the progress of the tax authorities in eliminating hybrid mismatch arrangements,and summarizes the shortcomings in China's current elimination of hybrid mismatch arrangements,including in the domestic tax system ? tax administration and international tax cooperation.Then a case study is conducted to illustrate how tax avoidance is in multinational companies in the cases.The process of investigating the case by the tax authorities and the judgment results of the case are described.In order to deal with hybrid mismatch arrangements,we should actively learn advanced experience.It summarizes the hybrid mismatch rules and experiences proposedby the OECD organization,and summarizes other foreign excellent experiences for different aspects of mixed mismatches,and gets inspiration for China's anti-hybrid mismatch arrangements.Finally,with foreign experience and China's national conditions,it gives some suggestions on anti-hybrid mismatch arrangements,for example,the government should constantly improve the tax system and set up a special anti-tax avoidance investigation team with tax elites,government also should strengthen international tax cooperation and exchanges.