The VAT Evasion Based on Cash Transactions between Enterprises: Between the Double-Subjects Enterprise and the Single-Subject Enterprise

摘要

This article focuses the VAT tax evasion by cash within upstream and downstream enterprises. The upstream enterprise runs away the increment duty by hiding taxable sales while downstream enterprise's obtains more than the VAT on purchase.Therefore the collusion between the main policy-making enterprises and enterprises single achieves. And the upstream enterprise with double-control subjects has a different decision-making process. This article establishes a new model basis on Crocker and Slemrod(2003) and analyzes the impact to the most superior cash transaction proportion from some factors as tax rate, cash transaction discount and so on. According to the results we put forward some recommendations for tax policy finally.