||In order to make the income derived from transactions of house and land to be taxed in a reasonable way. The " Tax Act by Uniting the Base and Building " is implemented from January 1, 2017. But the law of this Tax Act existing some incentives of tax evasion. For example, with the same income, the tax burden on an individual and on a profit-seeking enterprise is different.|
In this study, we use a game theoretical model to analyze the equilibrium between taxation bureau and taxpayer, and the effects of audit cost, fines and the difference of tax burden change. The findings indicate that:
1.There are two kinds of equilibrium. One is some taxpayer false declaration, and some taxpayers are audited by the taxation bureau in equilibrium. The other is all taxpayer declare honestly, still some taxpayers are audited by the taxation bureau in equilibrium.
2.The decrease of audit costs make the probability of false declaration down, but it has no effect on the rate of audit, so the taxation bureau should try their best to reduce the audit cost.
3. The increase of fines will make the probability of false declaration and the rate of audit down, nevertheless for the human rights of taxation, the penalty should be set at a reasonable level.
4. The increase of the difference of the tax burden lead to increase the rate of audit, and make the probability of false declaration down, this finding contrary to the general public’s rule of thumb.