Tax Avoidance And Anti-avoidance Game

Tax evasion, which has become a huge flaw causing fiscal revenue loss, diminishes fiscalrevenue directly as well as bringing about detrimental effects. Consequently, it is imperativefor China to take positive and effective measures dealing with anti-tax evasion. With theacceleration of economic globalization, economic transaction of domestic and overseas isgetting frequent and complex, which leads to severer struggle between tax evasion andanti-tax evasion. After China’s accession into WTO, international tax evasion hasinterpenetrated with domestic anti-tax evasion, influencing each other. Driven by profit, thisphenomenon tends to develop. It is undoubtedly that the anti-tax evasion campaign is not onlytime-consuming, but also arduous and complex. Based on the analysis of related literatures athome and abroad, as well as the systematically summary and references of theories relating totax evasion and anti-tax evasion, in the light of the current situation of tax evasion in Huizhouenterprises, this thesis intends to explore the reason why these enterprises turn to tax evasion.What’s more, with the help of game theory analysis, questionnaires and interviews,comparing the status quo of domestic and overseas anti-tax evasion as well as using theexperience for appropriate reference, applying the entry point of prevalent tax evasionphenomenon and the commonly used approaches in China and abroad, this thesis attempts tosearch for an effective solution to the tax evasion phenomenon in Huizhou. This thesis isconsisted of the following parts.The first part is introduction. This part illustrates the reason why the topic, which isResearch on Tax Evasion and Anti-tax Evasion Based on Applying Game Theory- TakeHuizhou for Example, was chosen. Also, what theoretical value and practical significance canbe created, the research status at home and abroad, and the research method is listed in thispart.The second part deals with not only the concept definition of tax evasion and anti-taxevasion, but also the theoretical basis of that. This part is the theoretical basis of this thesis. Itdefines tax evasion, contrasts and analyzes the following terms including tax evasion, taxdodging and tax saving, and comes up with a solution to tax evasion.The third part touches the current situation of tax evasion and anti-tax evasion. It statesthe origin of tax evasion and the basic situation of national and Huizhou taxpayers, what’smore, questionnaire and interview is applied to demonstrate and analyze tax evasion activities,making it clear why the taxpayers in Huizhou units choose to evade tax.The fourth part analyses the motivation of tax evasion by taxpayers in units. This chapteranalyses the reasons resulting in tax evasion of taxpayers in units, whose drives andincentives will be focused on.The fifth part mainly talks about the lesson learned from the experience of anti-taxevasion at home and abroad. By concluding the measures being taken and status quo ofanti-tax evasion in America, Canada, Japan and mainland China, this chapter sums up theenlightenment inspired by anti-tax evasion measures of domestic and overseas, which iseffective informal constraints, valid formal constraints and impactful enforcementmechanism.The sixth part concerns the countermeasures to anti-tax evasion in tax collectioninstitutions. Based on the research presented previously, with the purpose of effectivelydealing with tax evasion by taxpayers in units, legal system of anti-tax evasion needsimproving, propaganda mechanism needs updating, tax levy needs strengthening, anti-taxevasion working system needs reconstructing, agents incentive mechanism needs reformingand completing, and favorable tax environment needs incubating.