Research On Enterprises’ Tax Risk Control

In recent years, with the development of Chinese market economy andthe continuous advance of the tax reform, the role and status of tax isincreasing strong, and tax regulation system is correspondingly more andmore complex. The tax environment enterprises faced is always changing,which caused the enterprises’ tax-related risk become increasinglyprominent and the corporate pay more and more attention to the tax risk. Inorder to strengthen the enterprise prior tax administration, improve the levelof tax services and guide large enterprises to control tax risk reasonably, theState Administration of Taxation issued 《1arge corporations tax riskmanagement guidelines (trial implementation)》(Guo Shui Fa [2009] No.90) on May2009,《guidelines》have made specifications on the issue oforganization and construction of large corporate tax risk management, riskresponse strategies and internal control, risk identification and assessmentand so on. Under the described background, in the analysis method ofqualitative and quantitative, theoretical and empirical analysis together,based on the related theory of enterprise risk management and the tax riskfactor analysis model, the paper defines tax risk, discuss tax risk factors,causes, characteristics, types, and build the control system of tax risk. Thepaper is divided into six parts. The first part of the introduction summarizesthe background and significance of the topics, the research status, thestructure framework, methods and innovation. The second part describes theconcept, characteristics, classification of tax risk. The third part analyzes thetax risk factors and the internal and external reasons which result in theexistence of tax risk. The fourth part builds the control system of tax riskbased on the above theoretical analysis, and it includes: determine the taxrisk management objectives, identify and assess tax risk, develop andimplement tax risk control strategy. And take the retail business for example, full use of tax burden assessment indicators, the paper carried out theevaluation analysis on tax risk and draw that: the income, costs areimportant factors that affect the enterprises’ tax risk in the business process.Part five develops and implements tax risk control strategy and givesproposal on how to prevent and control the tax risk.