By using the statistics of medium and small listed companies and GEM that IPO within 2008 and 2011 as a sample, this paper did an empirical test about the relevance of venture capital participation and corporate tax planning. The results show that: (1) In consideration of endogeneity，companies with venture capital participation and a high equity ratio of VC have a higher tax planning enthusiasm, thus, we consider that in Chinas capital market, the hypothesis about VCs effective supervision does not hold water; (2)With VCs reputation characterized by the established period, capital, the number of companies invested, the number and amount of completed IPO, we find VCs reputation has a positive effect on suppressing the listed companys tax planning invested by VC.