On Tax Evasion And Its Governance Path: An Analysis From The Perspective Of Game Theory

Tax evasion can diminish government's financial resources and disturb market order. It could even threaten national economy and social stability. Therefore, the problem of tax evasion should be taken seriously by every country. It is also a theoretical and practical problem for Chinese government all the time. Taking tax evasion as an object, the thesis attempted to offer an intensive analysis on the sources of tax evasion with game theory. Combined with successful experiences abroad, I would try to put forward certain ways of dealing with the problem in China.The whole text was arranged as follows. The first chapter was devoted to defining tax evasion in the thesis and describing the situation of tax evasion in China.In the second chapter I tried to set up a Game model-Mixed Strategy Nash Equilibrium (MSNE) based on the existing studies. After a thorough analysis of the several parameters in the model, I added so some social and psychological factors which are well beyond the original model. I further undertook an empirical analysis of the main parameters by referring to the data of tax audit and investigation from 1997 to 2003 and then drew a conclusion about the overall situation of controlling tax evasion in China.The third chapter was an analysis of the sources of tax evasion from the perspectives of benefit-driving, consciousness of tax-paying, tax competition, tax institution, tax department, tax personnel and tax information.The forth chapter was a key part of the thesis. I proposed some ways of solving the problem of tax evasion, i.e. setting up tax payers' trustworthiness evaluation system,strengthening the education of honest tax-paying, realizing the unification of governance by law and by morality,promoting the progress of tax-collecting information system, enforcing the network of tax supervision, improving tax auditing and investigation, levying tax and punishing tax evasion.The research was based both on my working experience of tax auditing and investigation, and on benefiting from relevant domestic and foreign specialists. Some of the cases were colleted from my own working experience. With this research I expected to supply some possible references for controlling tax evasion in China.