On Improving The Game Theory Based Tax Audit Quality

Searching for the equilibrium solution regarding game problem in tax inspection is significant in many aspects, such as:tax inspectors’ correct understanding of tax planning, facilitate the nation to improve tax system and let enterprises correct their views of tax issues. The thesis applies basic principle of game theory, combines tax inspection theory, behavioral economics, management science et al, adopts dynamic bidirectional game model and joining entrusted agency of basic game model to analyze, then comes to the mutual relationship of multiple economic indices, for example, tax evasion income of taxpayer, bribery probability of entrusted agency and tax inspection authority’s fines; then elicits the condition and selection for the tax activity main body in the process of tax payment, seeks the equilibrium solution among the activity main bodies. In the process of decision-making, the subject of taxation, tax authority and entrusted agency will center on the factors like the success rate of tax inspection, bribery cost, penalty amount et al to make the analysis and decision which are beneficial for itself. This game model can formulate the policy for tax inspection authority, prevent illegal tax behavior, and provide theoretical foundation for the guidance of building favorable tax environment.At last, in terms of tax authority, taxpayer and entrusted agency, the thesis respectively proposes measures and suggestions that can enhance the inspection efficiency and effect, for instance, improve inspection method, employ incentive mechanism to restrain the tax-involved risk of entrusted agency and tax inspectors, adopt report-protection mechanism to enhance the supervision enthusiasm of taxpayers, decrease inspection cost...