A foreign businessman went to a wholly owned factory in East China and imported a number of second-hand machines that were eliminated from overseas factories as investment equipment.

The invoices issued abroad amounted to $1 million 500 thousand, but when it was declared, it was $1 million 800 thousand.

A local accounting firm habitually assumes that a sole proprietorship's "self financing" has nothing to do with others. It will approve its declared investment in the form of capital verification report.

After verification by the inspection and quarantine department, the actual value of the equipment is only 560 thousand US dollars.

There is a big gap between the value declaration and evaluation of investment and import equipment. It used to be a Sino foreign joint venture. Nowadays, this phenomenon is also frequent in wholly foreign-owned enterprises.

Foreign investment includes cash, production equipment and intangible assets.

According to the regulations, foreign-funded enterprises, whether invested in tangible equipment or intangible assets, must carry out value appraisal.

In recent years, joint-venture enterprises have significantly reduced the investment equipment in maliciously low price and high reporting, damaging the interests of the Chinese shareholders. However, the number of wholly foreign-owned enterprises has increased, and some have even played karate.

If a foreign businessman invested in a lighting equipment factory, he first purchased a number of second-hand equipment from abroad, and then imported it to the bank as collateral.

As a result, a group of old equipment that did not know the value of geometry provided land, bank loans, local factories and labor for the foreign businessman, and finally enjoyed various concessions from foreign enterprises.

In recent years, with the improvement of the technology content of foreign investment projects in China, more and more foreign investors invest in intangible assets, and this new form of investment has directly triggered new problems in value appraisal.

A foreign businessman is going to start a Tendering Company with a nominal capital of 1 million 700 thousand US dollars.

As a result, when applying for value appraisal, $1 million 500 thousand was a non patented software.

It is further confirmed that this software is much the same as the domestic online shopping software system.

Another chip company, foreign invested enterprise, has invested 9 million US $10 million in software.

The experts pointed out that investment in the price of software technology and intangible assets with independent intellectual property rights is encouraged and protected, but the premise is that it must comply with our relevant laws and policies. For example, intangible assets investment can not exceed 20% of the registered capital, high-tech enterprises can not exceed 35%, and investment software should be protected by copyright.

The foreign-funded enterprises obviously violate these regulations.

Foreign investors are laying an ambush on asset value, which is clearly driven by interests.

The author believes that some foreign investors increase their registered capital in order to enjoy preferential loans in the areas of loans, land leasing and taxation; some increase their fixed assets in order to raise depreciation costs of equipment and raise production costs, and ultimately pay less taxes.

The high prices and low reports are aimed at importing more equipment and evading Customs duties and VAT under the relevant department's approval of a certain tax allowance.

To some extent, the occurrence of these phenomena is directly related to the policy orientation of some local governments who emphasize the number of attracting investment.

Therefore, I remind relevant departments and enterprises to deceit in the appraisal of property value. In fact, they have enlarged the debt paying ability of these foreign funded enterprises, and have laid a potential crisis in the economic operation, which is like inviting poison and quench thirst in attracting foreign investment.