Study On The Problems And Countermeasures Of Tax Risk Management

As one of important branches of Management, risk management rise in early twentieth Century. Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources. Tax risk management is an important research in modern tax field. Tax risk management is the science of optimization and improvement to the tax management system in nature. It can help on better resource allocation among various departments with horizontal or vertical relationships. Tax risk management also contributes to more effective tax management system, smooth transition of management functions, reform of management style, and compliance degree of tax bearers.In this background, Hubei Taxation Bureau proposed the requirements to tax risk management at the end of2012. The proposal includes:1. Improvement of compliance degree of tax bearers;2. Standardization of tax collection process;3. Perfection of administration operating mechanism;4. Specification of tax risk management planning and implementation details based on the principle of "informational tax administration".Moreover, it also covers:1. The gradually establishment of internal and external tax risk early warning index system, evaluation models and knowledge base of risk characteristics;2. Strengthen of monitoring on tax administration process;3. Preparation of action plans for different types of tax risks.The proposal also requires to establish own tax risk management system by exploring better strategy, better platform, index and models, newer method and new ideas.In this thesis, based on Hubei practices, the author studies the problem of application of tax risk management. The author takes the common status and challenges as the research subjects, and employs literature research, case study method and other qualitative research methods. First, the author proposes understanding to the application of tax risk management, based on domestic and foreign related research results. Then, the author figures out the significance of tax risk management. At last, taking Hubei practices, the author summarizes the status and challenges, and proposes a set of suggestions and solutions. All these suggestions and solutions are useful to improve tax administration, and they are the basis for exploring other further risk management applications.