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The determination of the tax system of multinational corporations should consider the coordination of tax objectives and tax adjustment economic objectives, and properly handle the relationship between them. Generally speaking, tax objectives and economic regulation objectives are unity of opposites. The so-called opposition means that the two goals are different concepts, and the goals are often exclusive. When emphasizing the tax target, if the economic development is backward and the tax source is narrow, the tax burden will inevitably increase, and the adjustment of tax to the economy may bring negative effects. This is especially true in developing countries, where the government undertakes more functions and needs more taxes, but the economy is small. In order to achieve the income target, it may increase the tax burden of taxpayers and ultimately curb economic growth. Therefore, developing countries should especially handle the relationship between economic growth targets and tax targets. When introducing direct investment from multinational companies, the host government should give priority to economic growth and consider tax targets when formulating tax policies. In the past ten years, China has handled the relationship between these two goals well. Due to the large amount of tax incentives given to foreign direct investment, the amount of foreign direct investment is huge, the total size of China's economy has doubled, and the tax sources have been broadened. Although the tax rate is low, the tax revenue of foreign-funded enterprises has increased substantially. In the future, with the deepening of world economic integration, China's accession to the World Trade Organization and the needs of economic development, the introduction of foreign capital and the promotion of economic growth should still be the primary tasks when formulating tax policies for multinational corporations.
2. Formulation of tax law for transnational corporations
The formulation of the tax law of multinational corporations is an important part of the tax activities of multinational corporations, and it is the embodiment of the tax system and tax policy of multinational corporations. Multinational companies engage in production and business activities between sovereign countries. Taxation on multinational corporations involves the interests of sovereign countries, and tax supervision on multinational corporations represents national sovereignty. Therefore, the tax law of multinational corporations should be more authoritative, and the tax law of multinational corporations should be promulgated by the highest authority of sovereign countries, which is a relatively common method in the world. Western developed countries have implemented the legal system for a long time, with mature legislative ideas, strict legislative procedures, high legislative level and scientific legislative model. Therefore, the tax legislation of multinational corporations is very strict, concise and operable, which ensures the high-quality tax laws and regulations system of multinational corporations in western countries, lays a solid foundation for the high efficiency of tax collection and management of multinational corporations, and also strengthens the full implementation of tax policies of multinational corporations.
Since the reform and opening up in China for 20 years, the legislative system has been gradually improved, and the tax legislation of multinational corporations has also made achievements. However, only a few tax laws of multinational corporations in China are promulgated by the National People's Congress, and most of them are laws and regulations promulgated by the State Council, which are not authoritative, are not conducive to safeguarding the interests of multinational corporations, and are not compatible with international practices. With China's entry into WTO and the emergence of a large number of multinational corporations, it is particularly important to improve the tax legislation level of multinational corporations in China. We should clean up and rectify the numerous and complicated tax laws and regulations of multinational corporations as soon as possible, and establish a high-level, concise, unified, scientific and international practice tax legal system for multinational corporations to ensure the efficient operation of tax activities and the high efficiency of tax regulation and control. In the process of legislation, we should strictly follow the legislative procedures, conduct scientific argumentation, conduct in-depth investigation and study, adhere to the principles of fairness, openness and transparency, and formulate a tax legal system for multinational corporations in line with international practice.
3. Tax collection and management of multinational corporations
Tax collection and management of multinational corporations is the implementation and operation process of tax law from regulation to reality, and it is the process in which the subject of tax regulation acts on the object, which is of great significance in tax collection and management activities. Tax collection and management activities include two stages: collection process and management process. In the collection stage, the tax authorities, in accordance with the provisions of the tax law, adopt special methods to determine the operating income, cost, profit and other indicators, and finally calculate the tax and turn it over to the state treasury to achieve the tax target. This process is also the implementation stage of tax regulation. In the process of taxation, the material interests of multinational corporations, home countries and host countries are redistributed, and multinational corporations will change their behavior according to the principle of maximizing interests, which embodies the economic function of tax regulation. If this stage is missing or not strictly implemented in accordance with the provisions of the tax law, the tax target may not reach the expected scale, and tax regulation may not achieve the expected effect. The process of tax management is mainly to set up a series of tax procedures, tax calculation, tax inspection, illegal handling and other related tax matters for the object of tax management, which is the guarantee for the full storage of tax revenue and the guarantee for the function of tax regulation and control. Almost all countries in the world have formulated special tax collection and management laws to standardize the tax collection and management process, ensure the accurate implementation of the tax system, and ensure the realization of the economic purpose of tax regulation.
The tax collection and management of multinational corporations also involves the coordination between the home country and the host country of multinational corporations, and many countries have formulated specific cooperation methods. For example, international tax agreements stipulate that signatories have the obligation to provide tax information to each other and exchange information to prevent multinational companies from evading taxes, and also stipulate relevant provisions of tax agreements to prevent abuse; The EU has the Mutual Assistance Directive and the Convention on Mutual Assistance in Tax Matters. The OECD has formulated the OECD model audit agreement for the same period, and so on. All these have stipulated the international cooperation of tax collection and management, strengthened the tax management of multinational corporations, and ensured the realization of the expected goal of tax regulation and control of multinational corporations. China is relatively backward in this respect, so we should speed up the pace of international cooperation in tax collection and management of multinational corporations.
4. Tax Justice of Multinational Corporations
Tax judicature of multinational corporations refers to the activities of state organs with judicial power to try and judge tax disputes and tax crimes involving multinational corporations in accordance with legal procedures within the scope of their functions and powers stipulated by the Constitution and laws. Tax judicature of multinational corporations mainly includes tax administrative litigation and tax criminal litigation. The procedures of tax administrative litigation are plaintiff's prosecution, court acceptance, case trial, judgment and execution. The judicial procedure of tax criminal litigation includes that the tax authorities transfer illegal cases to the procuratorate, and the procuratorate files a case after accepting it and prepares for prosecution. After the examination by the procuratorate, the people who must be investigated for criminal responsibility according to law are prosecuted, and the court accepts and files a case for trial. Taxation judicature punishes criminals who violate the tax law, solves controversial cases and ensures the implementation of tax system and tax policy of multinational corporations, which is the guarantee for the smooth tax collection and management activities of multinational corporations and the realization of national tax policy of multinational corporations. The tax administration of multinational corporations also requires relevant countries to cooperate closely in accordance with the provisions of international law and fully cooperate in the evidence collection, arrest and trial activities of multinational corporations. Due to the differences in the legal systems of many countries, the handling of tax cases of multinational corporations requires specific coordination between the countries concerned, and the tax interests of all parties should be properly handled within the legal framework as far as possible, so that offenders can be punished as they should.
Second, the essential movement form of the tax control mechanism of multinational corporations-the change of income
The essential movement of the tax control mechanism of multinational corporations mainly refers to changing the material interests between the home country and multinational corporations, the host country and multinational corporations, and the home country and host country through taxation, that is, changing the income of multinational corporations, host countries and home countries. Changes in income include the following:
1. Impact of changes in commodity tax burden on income changes
The influence of the change of commodity tax burden on the change of income can be analyzed through the final destination of commodity tax burden. Many scholars have made partial equilibrium analysis and general equilibrium analysis on the destination of commodity tax. In the partial equilibrium analysis, it is concluded that the destination of commodity tax depends on the relative elasticity of the supply and demand curve of taxable goods. When the demand curve is fixed, the smaller the elasticity of the supply curve, the heavier the tax burden of commodity producers. When the supply curve is fixed, the smaller the elasticity of the demand curve, the heavier the consumption tax burden of goods. Through the general equilibrium analysis, it is found that the tax is borne by the producers, and the income of the producers decreases and the income decreases; Generally speaking, the higher the tax rate, the heavier the tax burden and the greater the decline in income. The above shows that the imposition of commodity tax on multinational companies will affect their income and thus their behavior.
How does the commodity tax burden of multinational companies change their income? Because commodity tax and marginal cost are related (the reason is that marginal cost has nothing to do with fixed cost, but only with variable cost, which increases with the increase of output, so marginal cost also increases with the increase of output; Because commodity tax is directly proportional to output and positively related to marginal cost, it determines that commodity tax has the function of causing income changes through the interaction with price mechanism. If a commodity tax is imposed on multinational companies, the marginal cost of multinational companies will rise by three liters. If the market price of products rises, it will have a substitution effect and consumers' consumption behavior will change. In the case of unchanged inventory, the sales volume of multinational companies will be affected, and finally the income of multinational companies will change. If the price remains unchanged, the commodity tax burden of multinational companies will increase marginal costs, directly reduce corporate profits and lead to a decline in income. As for the range of income change, it depends on the tax rate, the supply and demand of the market and the elasticity of supply and demand of products.
2. The impact of changes in income tax burden on income changes
The influence of income tax burden change on income change can be determined by analyzing the final destination of enterprise income tax burden. Because the object of enterprise income tax is all companies in the economic system, not companies in a certain industry, it is necessary to analyze the destination of enterprise income tax with general equilibrium analysis. Many scholars (such as Arnold C. Harberg of the United States) believe that in all cases, the company bears almost all the enterprise income tax after analyzing the possible influencing factors. Therefore, the collection of enterprise income tax will inevitably reduce the company's income. The higher the enterprise income tax rate, the heavier the tax burden and the greater the income decline. Some scholars believe that because many companies have a considerable degree of monopoly, they can easily raise prices and pass on part of the tax burden to consumers. But no matter from what point of view, the tax burden brought by enterprise income tax will definitely affect the company's income, which is beyond doubt, but the accounting profit is less than the taxable income stipulated in the tax law, which will lead to the increase of income tax expenses in the future.
Case study:
An enterprise purchased a set of equipment in February 1994, with a value of180,000 yuan. According to the tax law, the service life of equipment is 6 years. With the approval of the tax authorities, enterprises adopt accelerated depreciation. The depreciation period is 3 years, and depreciation is not allowed from the fourth year. In addition, the total profit before income tax of this enterprise 1995 to 2000 was1000000 yuan, and the income tax rate was 33%.
Enterprises have problems with time difference. According to the tax law, the depreciation amount is 300,000 yuan per year (excluding residual value), while according to accelerated depreciation, the depreciation amount is 600,000 yuan per year, which is 300,000 yuan per year in terms of time difference.
According to the tax payable: 1995- 1997, the annual income tax payable is 429,000 yuan [( 100+30)×33%], the annual income tax expense is 429,000 yuan, and the annual net profit is 57 100 yuan; 1998 to 2000, the annual income tax payable was 23 1 10,000 yuan [( 100-30)×33%], the annual income tax expense was 23 1 10,000 yuan and the annual net profit was 769,000 yuan.
Accounting method based on tax impact:1995-1997, annual income tax payable is 429,000 yuan, deferred tax is 99,000 yuan, annual income tax expense is 330,000 yuan, and annual net profit is 670,000 yuan; 1998 to 2000, the annual income tax payable was 23 1 000 yuan, the annual income tax expense was 330,000 yuan, and the annual net profit was 670,000 yuan.
Examples show that different income tax accounting methods have different amounts included in the current income tax expenses, which directly affect the amount of current net profit. Therefore, under the condition of market economy, enterprise financial personnel should save income tax expenses through reasonable planning and arrangement of production and business activities and financial activities in order to maximize profits. At the same time, as a tax official, on behalf of national law enforcement, we should carefully examine the enterprise income tax, master the methods of enterprise tax adjustment, and prevent unreasonable adjustment from causing tax loss.
In practice, there are two ways to deal with timing difference: deferred tax method and liability method. The main difference is whether the deferred tax is adjusted with the change of national tax rate. Therefore, we should also pay attention to the tax payable by enterprises.
How does the income tax burden borne by the company change the income? Income tax has nothing to do with the marginal cost of products, which determines that the transnational income tax mechanism is interest-oriented through its functional relationship with profits or income, and has a direct impact on the direct investment of multinational companies. Because the income tax of multinational companies has nothing to do with the marginal cost of products, it will not cause changes in commodity prices at least in the short term. Under the restriction of foreign-related tax coordination system, the income tax burden of multinational companies directly affects the change of investment return rate, and then affects the change of taxpayers' economic behavior.
3. The impact of international tax coordination on income changes
International tax coordination means that the home country and the host country of multinational corporations make the tax burden of multinational corporations moderate, exempt from international double taxation, punish international tax evasion and eliminate vicious tax competition, and sign multilateral or bilateral tax agreements through equal consultation and mutual benefit under the condition of recognizing the tax jurisdiction of various countries, so as to ensure that the tax interests of the home country and the host country are fair, and that the tax burden of multinational corporations is reasonable and the investment income grows steadily. International tax coordination is mainly achieved by signing multilateral and unilateral tax agreements. The international tax coordination mechanism mainly includes the following aspects: First, the international coordination of tax jurisdiction. Because there are more foreign direct investments in developed countries, residents tend to have tax jurisdiction, while developing countries mainly introduce foreign direct investments and tend to implement regional jurisdiction. In order to avoid double taxation, coordination must be carried out through various means such as tax exemption, tax preference and tax credit. The second is the international coordination of transfer pricing. Due to the differences of tax system and tax burden in different countries, multinational companies often use the advantages of their global network to transfer the tax base through product pricing power to achieve the purpose of tax avoidance and harm the interests of the host country, which requires the coordination of relevant countries to eliminate this problem. Thirdly, the coordination of tax incentives includes two aspects: first, the host country should give all or part of tax incentives to multinational companies to ensure that multinational companies have higher income and achieve the purpose of tax adjustment in the host country; Secondly, in order to attract foreign investment, many countries compete to reduce tax burden and launch tax competition, which has negative effects on economy and tax revenue. Therefore, it is very necessary for countries to carry out international coordination to eliminate negative effects. Fourth, the coordination of tax collection and management, including the exchange of tax information, the establishment of tax collection and management cooperation mechanism, transnational tax inspection, and the stationing of tax personnel.