Operational Research On Tax Planning Of Enterprises

Tax planning is now specialized as a comprehensive discipline, though few people have applied operational research in tax planning study and research. In fact, as tax planning of enterprises becomes increasingly complicated, applying operational research as a quantitative analysis method to solving complicated tax planning problems which involve many interactive factors is not only necessary and practicable, but also supposed to have theoretical and realistic significance. Using operational research methods as the main thread, this dissertation explores the optimization decisions of some material tax planning problems. By adopting different operational research methods, it studies four significant tax planning problems, that is, the tax planning problem of transfer pricing in transnational operation analysis based on linear programming, the tax planning problem of loss carry forward analysis based on nonlinear programming, the tax planning problem of depreciation methods for fixed assets analysis based on single-objective decision analysis, and the tax planning problem of foreign direct investment location choice analysis based on multiple-objective decision analysis. Major research achievements of this dissertation are embodied in the mathematical models established, the computing formulas derived and the important parameters advanced. These achievements can lend important theoretical support to the disciplinary field of tax planning and provide useful decision tools for the quantification of tax planning practice. Therefore, this dissertation innovatively succeeds in exploring the regular descriptions and quantitative decisions of tax planning with mathematical methods.The main academic contributions of this dissertation are described as follows: Firstly,with a special consideration on the factors of dividends distributed and the related avoidance of international double taxation with respect to withdrawal tax and income tax, this dissertation establishes a universal linear programming model for tax planning of transfer pricing in transnational operation. Secondly,this dissertation derives a nonlinear programming model for tax planning of loss carry forward in the case of continuous loss, which has general applicability for enterprises with continuous loss. Thirdly,this dissertation brings forward a nonlinear programming model for tax planning of loss carry forward in the case of discontinuous loss, which has general applicability for enterprises with discontinuous loss. Fourthly,thisdissertation sets up a nonlinear programming model for tax planning of loss carry forward considering the influence of monetary time value, and the model also has general applicability for enterprises with continuous loss. Fifthly, by applying single-objective decision analysis method, this dissertation introduces a criterion parameter of critical discount rate and derives its mathematical formulas, and the parameter can serve as a general direct criterion in tax planning for depreciation methods of fixed assets when taking into consideration the factor of risk. Sixthly, by applying multi-objective decision analysis method, this dissertation constructs an AHP model for tax planning of foreign direct investment location choice, with which the optimal location choice can be made while considering many factors of taxation.