The formation of basal plane stacking faults in highly nitrogen-doped 4H-SiC crystals was theoretically investigated. A novel theoretical model based on the so-called quantum well action (QWA) mechanism was proposed; the model considers several factors, which were overlooked in a previously proposed model, and explains well the annealing-induced formation of double layer Shockley-type stacking faults in highly nitrogen-doped 4H-SiC crystals. We further revised the model to consider the carrier distribution in the depletion regions adjacent to the stacking fault and were successful in explaining the shrinkage of stacking faults during annealing at even higher temperatures.