Selection of Supervision and Penalty: Viewing Taxation From the Angle of Game

With a view to the serious tax evasion in China, the article demonstrates by building a game theory model the idea that establishing the corresponding system or policy to remunerate and encourage tax collectors can strengthen their tax supervision so as to reduce tax evasion. At the same time, the model proves that the encouraging system js better than penalization only. Finally, the authours put forward some other proposals to protect taxation, such as individual responsibility system and the system of remuneration for active taxpayer,etc.