A Study On Railway Transportation Enterprises Tax Risk Management

Nowadays the world economic structure is undergoing tremendous changes and China's market economy is continuous developing:the system of tax regulations become more perfect,the tax collection measures become more stringent,and the corporate economic behavior becomes increasingly complex.As the enterprises are facing the risk of tax having become increasingly evident,from internal and external,the enterprise must be timely to improve enterprise-wide risk management.In fact,tax risk management need penetrate into all aspects of the enterprise,from strategic planning,business decision-making,to day-to-day operations management.However,Enterprises did not pay enough attention to tax risks even it is an important risk.Controlling tax risks improperly may not only enable enterprises to bear the unnecessary tax burden,but also damage the enterprise reputation,result in losses of the assets of the enterprise,suffer legal sanctions,even lead to corporate bankruptcy.For tax risk,the measures Chinese enterprises adopted are always basically passive,emergency and temporary.The internal control system is lack of systematic and institutionalized control measures to response to tax risk.In 2012,China started the tax reform,which implements value-added tax instead of business tax.After then the railway transport enterprises are facing increasingly complex tax environment,and the demand for tax risk management system has become more and more urgent.In this paper,domestic literature of tax risk management are reviewed.By using the theory of internal control,this paper analyses railway transport enterprises' control environment-sets,risk assessment,information and communication-systems,control activities and monitoring-processes.Tax management model in railway transport enterprises and their main tax risks are described in this paper to emphasizes the importance of taxation institutions in tax risk management.Another key point in this paper is that the core of railway transport enterprises' tax risk management are designed based on information platform,which contains three parts:preserving before the event,controlling in the event and dissolving after the event.It points out the informational solution which is practical to railway transport enterprises' tax risk management.