An Efficient Model of Tax Planning for Small and Medium Enterprises with Situational Matrices

This paper investigates tax－planning process from the decision－making perspective and provides a situational－matrix model to enhance its effectiveness at small and medium sized enterprises (SME). The paper contributes to existing literature on mathematical methods used in accounting and tax planning by providing the evidence of mathematics importance for decision making processes in the age of Industry 4.0. As a result of coefficient modification of the Situational－Matrix Method (SMM) approach we suggest a set of instruments that can help SMEs to obtain a big picture of the financial situation and increase the efficiency of tax planning. We then describe a numerical model of accounting for payroll transactions as a sample in order to provide readers with understanding of the approach undertaken in our study. Finally, the paper presents an opportunity to evaluate alternative instruments that can be used regardless of the language and standards set. We also provide an evidence of periodical (from time to time) tax planning and tax avoidance inefficiency.