Research On Tax Risk Identification Based On Financial Statement Analysis

With the advance of the reform of national and local tax collection and management,enterprises are facing a more comprehensive taxation administration system.In the face of the increasingly severe tax supervision environment and the gradual increase of tax illegal costs,enterprises begin to gradually realize the importance of tax risk management,and how to identify tax risks is the first step of the management.By studying how to use financial statement analysis method to identify tax risks of the enterprises,this paper aims to help those enterprises establish an awareness of tax risks,learn how to identify and then to discover their own tax risks,thus to make adjustments,avoiding any illegal behaviours or extra expenses on tax.This paper begins with the expounding of relevant theories of tax risk and financial statement analysis.Then,three financial statement analysis methods are introduced to identify tax risks,they are:1,in combination with the current tax policy,to clarify the tax-related risk on each item of the balance sheet,profit statement,and cash flow statement,highlighting the main tax-related risk points;2,the four types of financial indexes are established to identify the tax risks,they are operational financial index,proportionality index,change rate index and tax burden index;3,Comparing different financial statements and tax returns to identify tax risks.Finally,CJ was introduced as a specific case of application of the methods discussed in the paper.Using the above three methods to identify tax risks,we come to the conclusion that there are doubts on the tax risks in CJ,and after integrating and analysing the suspicious points,we are to know CJ does face the tax problems.This case study further verifies the effectiveness and operability of the methods this paper discusses.