The TCI Case – A Milestone Case for China Taxing Offshore Indirect Shares Transfer

Journal
Author
Li, N.
Country
China (People's Rep.)
Published Date
Issue
Asia-Pacific Tax Bulletin 2019 (Volume 25), No. 6
FormatPDF
EUR
45
| USD
50 (VAT excl.)

This article presents a full picture of the TCI case, a case trialed at Chinese courts for China taxing a non-resident transferring shares of a non-Chinese resident enterprise outside of China. The article examines the “reasonable business purpose” test applied to this case under Chinese GAAR and describes the impact of the BEPS Project on this case. The author holds the opinion that the TCI case has significantly influenced China’s legislation and administration on taxing offshore indirect shares transfers.