Tax Planning Analysis from a Game Theory Perspective under the New Normal

Abstract

With P.E.S.T. method, the paper analyses the external environment that enterprises face and clarifies the necessity of tax planning under the New Normal and, with vairables, in the model, deduces and calculates all factors that are involved in enterprises’ tax planning, by using principles and models of Game Theory and methods of mathematical analysis, also analyses the tax planning game between enterprises, between enterprises and tax department, between enterprises and external environment under the New Normal and economically explains the result and discovers factors that affect enterprises’ tax planning from the perspective of economics, discusses the best strategy of tax planning the enterprise should reasonably take under different circumstances and suggests how an enterprise should scientifically conduct tax planning under the New Normal.