Problem Research On Our Country Tax Erosion Of Foreign-owned Enterprises

Tax evasion is focus which people pay general attention to the whole world and the difficult which is troubled by the governments. Tax evasion destroyed the seriousness of the law and it effect the government financial revenue and has restricted the development of national economy. Even if the United States of legal fairly, high level of levying and managing ability, tax consciousness strongly , the department of labor and domestic revenue department estimates that the paying tax ratio of national tax payer has reached by 87 percent. In our country, especially in the new period of economic transition, the driving of all sorts of independent economic benefit mechanism makes strongly people to reduce their own tax burden, besides the system ,policy ,levying have the defects tax evasion phenomenon changes increasingly fierce, which is not only bothered tax, but also threatens the development of national economy. On the whole, tax evasion phenomenon covers all walks of life. Tax evasion amount of the foreign capital enterprise increase year by year through the data statistics so that huge amount of foreign tax erosion problems from theory to practice has a very important theory value and practical significance.The paper starts with our nation utilizes foreign investment and analyzes the investment situation of foreign-owned enterprise in China. Then author summarizes the tax erosion and foreign-owned enterprise tax erosion connotation and denotation with combining previous researches. Author also investigates the game-theory relations between avoiding tax and tax authorities checking by game thinking method with combining theory and practice. Of course the conclusion is that foreign businessman gives up avoiding tax for publishing strictly under the condition that the tax authorities seriously check. The second chapter importantly analyzes the problem and reason of foreign-owned enterprise tax erosion. Whether thin capitalization or transfer pricing, they can reflect the fact that there are a lot of loopholes of China's foreign investment, finding out problem, solving the problem at last. This followed chapters understand the situation of China's fiscal revenue relevant data for empirical analysis to investigate the relationship between foreign-owned enterprise tax evasion and tax revenue and between foreign-owned enterprise tax loss and GDP, and then form the corresponding results, which created a new idea of quantitative analysis of foreign tax loss. Finally, according to the loss of foreign tax issues and causes, author refers to improve this phenomenon measures and suggestions. On the whole, we should reform wholly the foreign preferential policy in China, establish modern tax checking system from system innovation, improve our tax system, optimize the taxation system structure, and strengthen the foreign-capital enterprise transfer pricing taxation management in China. Specific for , we should improve our tax authority's professional quality ,improve collection way promote collection electronic and improve rate paying awareness of Chinese investors.