The Study On Tax Risk Management Of Xinchen Department Store

For the past few years, many domestic large retail enterprises all have taxcompliance problems in different degrees when in tax examination, like Gome，Suning, they faced a lot of crisis caused by tax risk. It brings those enterprises greatdamage to operation and reputation. Therefore，tax risk management is becoming avery important part which cannot be ignored in the development of retail enterprises.Xinchen department store is a private retail enterprise which is main for supermarket.With the expansion, its tax risk has become increasingly prominent. Under thisbackground, we choose tax risk management of Xinchen department store as theobject of our research. On one hand, we can try to give some suggestions to Xinchendepartment store about how to improve the tax risk management so that it can declinethe tax risk and improve the internal governance. On the other hand, this article willalso be helpful to those researches of other retail enterprises’ tax risk management.At ifrst, this article carry on the tax risk identification of Xinchen departmentstore in terms of basic and vital aspect. From basic aspect of tax risk identification,we ifnd some tax risk points, such as not setting up special tax institution, lowoperation capacity and professional ethics of enterprise staff, no perfect tax-relatedinformation system, no tax internal audit, and not standardized in tax registration, taxreturns, tax payment. From vital aspect of tax risk identification, we ifnd Xinchendepartment store has tax risks largely in procurement, marketing, storage, allocationand expansion. Then，based on the identification, this article carried on tax riskassessment of Xinchen department store. From assessment, we ifnd Xinchendepartment store is abnormal in three proportion index，VAT tax rate and corporateincome tax rate, verifying the tax risk identified. At last, according to the “BigEnterprise Tax Risk Management Guidelines (Trial)”，we make some suggestions toimprove Xinchen department store’s tax risk management. These suggestions aremainly from tax risk management target, tax risk management institution, tax riskidentification and assessment, tax risk response and internal control, information andcommunication, supervision and improvement.