The Impact Of In-House Tax Management On Corporate Goverance

In recent years, following the in-depth research of the problems of corporate governance, the corporate governance becomes one of the hot research topics. There is positive and interactive relationship between in-house tax management and corporate governance structure. However, boards of directors have not always given tax the attention it deserves historically. Instead, it has been seen as a technical matter for the tax department or specialist advisers to deal with. As a result, the boards neglect or underestimate the degree of their need to participate. They do not make appropriate risk assessment and determine the tax strategies to avoid or reduce tax risk. Because tax-related issues played an important role in several of the most notorious recent corporate scandals, tax departments - in particular, the decisions they make and the internal processes they follow - are squarely in the spotlight. This paper will analyze in-house tax risk, then establish the relationship between tax risk management and corporate governance. The responsibility of tax management should not solely rest on the in-house tax department or consultant. Instead, all the company staff including board of directors, chairman, management, audit committee, internal auditor and others should play a role in the internal control. Finally it will discuss the impact of in-house tax management on the corporate governance and how to strengthen internal control and corporate governance, in order to achieve the objective on in-house tax risk management.This paper will analyze in the following aspects:1. analyze in-house tax management including responsible department, scope of work, types of tax management risk2. understand corporate governance's development, objective, internal control structure and tools of control3. discuss the relationship between corporate governance and in-house tax management4. detailed analysis of the impact of in-house tax management on corporate governance...