Various tactics of reasonable tax avoidance for enterprises

The so-called tax avoidance refers to the enterprises in order to achieve maximum profit and minimum tax burden, study the differences between tax laws, planning individual or group internal financial tax plan, in order to evade tax. The foreign-owned enterprises all have the secret tax avoidance recipe, although the tax avoidance violates the tax legislation intention, is contrary to the government's tax policy direction, but the tax avoidance is not illegal, the legal existence reasonable tax avoidance's saying.　 Because of this, many foreign-funded enterprises take various strokes to achieve reasonable tax avoidance purposes.　 Transfer pricing The KPMG accounting firm Zhang disclosed that when they audit foreign-funded enterprises, they often encounter some use of the existing Chinese tax law does not sound transfer pricing of tax avoidance methods. For example, Miss Zhang said, she was in the audit, met a headquarters in the foreign branch of the domestic processing manufacturing enterprises, the headquarters intends to increase the cost of raw materials, increase liabilities, in the same price unchanged, so that the loss of profits, even losses, in the loss, will increase investment, all the year round, The tax authorities have no alternative but to do so. This practice is called "transfer pricing" by the auditor.　 The company's "long-term deficit" approach is also prevalent in many foreign companies. Transfer pricing is an important means for modern enterprises, especially transnational corporations, to borrow from international tax avoidance. In modern economic life, many tax avoidance activities, whether domestic tax avoidance or international tax avoidance, are related to the transfer pricing.　 They tend to sell goods and distribute costs through lower internal transfers from high tax countries to low or tax havens, or from a low tax or tax havens to high tax countries with higher internal transfer pricing of goods and distribution costs, so that the overall tax burden of international affiliated enterprises to reduce. Loan high interest rate use of proprietary technology and other intangible assets priced above the international market price, or hidden in the equipment price of a method. Foreign companies use people do not understand the real price of equipment and technology, from which to raise equipment prices and technology transfer prices, the enterprise profits to the overseas transfer.　 While raising the price of equipment, they hide the transfer price of technology in the price of equipment in order to avoid the withholding tax due to royalty income. Labor service charge standard "high into low out". Affiliated enterprises to provide services to each other or service, usually foreign companies charge high, domestic companies charge low or even no charge.　 Some also falsely listed overseas company expenses. Asset assessment improvement depreciation Miss Zhang had met a Hong Kong company which had to evaluate its real estate every year, and its subsidiaries in China had to evaluate the property in China at the same time because they wanted to make a consolidated statement with the Hong Kong parent company. It is also an effective way to evade taxes.　 If the real estate evaluation value-added, the annual depreciation will also increase correspondingly, the tax will naturally be reduced accordingly. International tax haven Construction Company reporter also learned from a former Taiwanese company, Miss Chen, registration in a tax haven is also a way. They used to use the same approach. To establish a company in an international tax haven and then to operate a commercial or financial operation with a company in a tax haven and elsewhere, to transfer profits to a tax haven and to reduce taxes by tax exemptions or low taxes on tax havens.In the Yangtze River Delta region, some foreign-invested investors come from places such as British Virgin Is., and actually on the island, they may have only one office. The use of tax havens for tax avoidance is one of the means by which multinational taxpayers reduce tax burden and increase income, while maintaining the effectiveness of the tax system in raising national financial funds is one of the important tasks faced by the tax authorities of various countries. With the continuous use of tax havens by multinational taxpayers, the tax rights and interests of the State are constantly damaged, the tax revenue is affected, and the fairness principle of the tax is destroyed correspondingly. Therefore, many countries, especially developed countries, pay special attention to how to prevent transnational investment operators from using tax havens for tax avoidance activities.