Research On Tax Planning Risk Management

In accordance with the trend of economic globalization and the further opening of domestic market,M & A has become a springboard for Chinese enterprises to go abroad.In the process of merger and acquisition of enterprises,tax planning risks may arise.For example,in the process of merger and acquisition of enterprises,tax planning risks may arise because the relevant tax policies are not properly applied,these risks will affect the smooth progress of M & A,so it is necessary to carry out tax planning risk management around M & A.Taking Capital Iron and Steel Group S Company as an example,this paper constructs the risk management system framework of enterprise M & A tax planning,which is applied to the financing of M & A.The system is mainly divided into the preparation stage,the implementation stage and the measures and effects to deal with the risks.The preparation stage measures include the collection of tax planning risk information,the establishment of a special risk management team,and other four steps.The implementation phase consists of three steps: Risk Identification,risk assessment and risk ranking.There are three kinds of risks in the financing of M & A,they are the change of national tax policy,the improper operation of human factors and the improper financing proportion.In order to deal with these risks,the capital Iron and Steel Group has formulated two sets of tax planning plans for M & A.Through the comparison of the "risk entropy" coefficient,the best plan is finally determined,and the effect of the tax planning risk management for this merger is evaluated,through the calculation of the IRR reached the conclusion that this merger is in line with the capital iron and steel group's expectations,so this merger is more successful.At last,this paper puts forward some suggestions on the management of M & A in view of the M & A.