Research On Enterprise Tax Risk Management Based On COSO Internal Control Framework

Due to the opposition of natural attributes,there must be a game of interest between the taxpayers represented by the enterprise,and the tax party represented by the tax authorities all the time,which determines the inevitability of the enterprise tax risks.At present,our country's tax reform continues to push forward,tax policy system reforms frequently,tax laws and regulations,along with the enterprise's tax related businesses became more and more complex.At the same time,many enterprises got a weak consciousness and low ability in dealing with tax risk.The construction level of the enterprise tax risk management system is far from matching the harm of tax risk.Generally speaking,tax risk management has become a weak link in the whole process of enterprise risk management.Many enterprises pay heavy price on that,such as cost increases,reputational damage and even criminal penalties.But if handled properly,enterprise tax risk can also be a good opportunity for business development.Therefore,it is necessary for enterprises to integrate tax risk management into its internal control system.Through establishing an effective tax risk management system,it is beneficial to prevent and control the production of enterprise tax risks,minimize loss,and finally to fulfill the maximum value and sustainable development of the enterprise,making it more competitive.It is also positive for tax authorities and academic theorists to study the tax risk management of enterprises,help in safeguarding tax revenue,giving full play to the function of taxation,improving administrative efficiency of government,broadening research field,further improving and enriching the existing theoretical research results in this field.This paper with the enterprise tax risk as the research object,summarized the research results of risk management and tax risks in China and abroad in comprehensive using of literature research and case analysis,defined the connotation,characteristics and classification of enterprise tax risks,analyzed the meaning of the five elements by combining the COSO internal control framework with the enterprise tax risk management.Then evaluated the construction level of enterprise tax risk management system by analyzing two cases.On that basis,this paper analyzed the different performance forms and underlying causes of the enterprise tax risk.Finally putting forward the principles of enterprise tax risk management,providing suggestions on design of a feasible tax risk management system for enterprises from five aspects based on the concept of COSO internal control framework,hoping it will help enterprises to strengthen their tax risk management.In addition,this paper makes clear that taxation is the primary source of government revenue.to promote the tax risk management system is a social synthetic proposition.It is not only the need for the development of the enterprise itself,but also the economic and social development of the country.Therefore,this paper also aimed at the government,tax authorities and third-party tax intermediary agencies,clarifying their responsibilities and making recommendations from the perspective of external power of enterprise tax risk management.Hoping that all parties can form synergy to participate in the construction and improvement of enterprise tax risk management system.