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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (3390)	7/20/2004 1:51:16 PM
From: Logain Ablar	Read Replies (1) \| Respond to of 6370

Yiuw: In the US as part of the income tax code there is a section on transfer pricing to try and eliminate some of the tax dodges us companies would try to do in this area (not sure how sucessful the law is with all the companies headquartering in Bermuda to avoid taxes). Now to understand the transfer pricing regulations one would need to hire an attorney specializing in the area.

To: RealMuLan who wrote (3390)	7/20/2004 5:30:45 PM
From: BubbaFred	Respond to of 6370

Yeah, I am familiar with those kind of strategy and finagled bookkeepings. Many other ways, and they can be made very convoluted and it will take a lot of effort to track down. The reason it's taking place is because of the lack of regulations and no enforcement of regulations. It will require a larger bureaucracy for oversight agency of the companies books and watchdogs on the local officials who stamp validations and approvals. The simplest way is to force all transactions through a commerce and business dept. That way all transactions have official record and can be traced and tracked. Anomalies can be found quickly and easily. Violators and transgressors can be identified easily. Big bureaucracy sometimes is a necessity. US has huge bureaucracy. One big drawback will be reduced foreign investments into the country. One big reason for the large inflow of capital into China is the many ways to avoid or minimize tax.