Research On The Large Enterprise Tax Risk Management

In recent years, with the rapid development of China economy, a group of large enterprises spring up. Large enterprises’ business complexity, management internationalization, and rapid changes in domestic and international tax system, make the large enterprise tax risk problems have become increasingly prominent. Recently, Chinese and foreign academic studies on large enterprise tax risk management are just unfolding. However, in practice, tax risk management implementation in large enterprises is not optimistic and most enterprise tax risk management is still in the initial stage. Therefore, large enterprises need get professional guidance of tax risk management immediately.This paper stands on the perspective of large enterprises, using literature research method and induction deduction method, sums up the experiences of previous studies on large enterprise tax risk management. Besides, this paper definitely defines the concept and types of corporate tax risk, and have a careful analysis of the causes of large enterprise tax risk. At the same time, based on the2004COSO enterprise risk management framework,"the large enterprise tax risk management guidelines (Trial)" and other risk management theories, this paper seriously discusses how to set up the tax risk management system for large enterprises.This paper believes that the tax risk is manifested in two aspects. The first is the large enterprise fails to pay taxes and is punished by tax authority, and the second is the large enterprise fails to make full use of tax regulation to save tax legitimately and causes potential economic loss. For the first aspect, large enterprises should take compliance as the key point, and build their tax management systems from the following factors:the tax risk management objectives, organizational structure, and risk identification, risk assessment, risk response, information and communication, monitoring and improvement and so on. For the second aspect, large enterprises should be familiar with tax planning methods and preferential tax policies and other means to obtain legal and reasonable tax avoidance, which is beneficial to extend the large enterprise tax risk management system. In addition, taking into account the cost benefit principle, this paper specially discusses key points of the large enterprise tax risk that need to pay attention, which includes the main tax risk point of important taxes, the influence of Chinese tax policy’s changes on large enterprises, and the tax inspection key points of tax authorities in recent years. This paper is looking forward to provide positive thinking and ideas for large enterprises to construct tax risk management mechanism.