The Economics Analysis & Counter Measures On FDI Tax Erosion

The tax evasion phenomena happened in the area of FDI is manifesting and looming in recent years. After reviewing research achievements in related fields abroad and domestically, this thesis begins at defining the term of FDI tax evasion and classing the existing situations from different angels with an emphasis on the analysis of main ways of the FDI tax evasion in China, in the same time pointing out the serious FDI tax evasion situations currently. With the recognition of the important effects of subjective factors in social economic phenomena, before elabrating the objective reasons of the FDI tax evasion the author deeply discussed the enterprise subjective factors in the FDI tax evasion by using some conclusions from modern Game theory, which also becomes one major feature of this paper and will be publicized independently afterwards. Although this research intends to clarify the negative impacts of the FDI tax evasion by estimating the scale of it and to provide arguments for curbing and bringing under control the FDI tax evasion, in the mean while a rational base to face the FDI tax evasion is found through author's thoroughly reviewing the history of our nation's reform and open policy over the past 20 more years. Based on the precedent solid analysis, six pieces of policy suggestions to curb the FDI tax evasion are put up respectively by the author, of which, the using of the simplified A-S model to justify the measurement of a more severe hand on the FDI tax evasion cases is more concise than using Game theory model by some other researchers, yet yields the same result.