With the developing of modern capital structure theory,the enterprises at home and abroad are learning how to flexibly use the theory in practice to maximize the value of the enterprises.Thin capitalization is such an application and its objective is that the enterprises use capital structure arrangement to change the obligation duty to pay tax and to avoid paying tax.Currently,the foreign enterprises from advanced countries are good at using the method of tax avoidance to erode a lot of China's taxes because,currently,China's taxation system framework has not understood,standardized and controlled thin capitalization.Meanwhile,under the situation of that China has gradually recognized the urgency of this issue,how to monitor and control the taxation is a big technological difficulty.