Research On The Tax Risk Management Of R Garment Company

With the rapid development of China's economy and the continuous change of the taxation system,the tax environment for companies is becoming more and more complex.As a result,tax risk has become a significant risk faced by companies in their operations and management.If the tax risks couldn't be handled properly,companies may have serious economic losses and reputational damage.For instance,due to the tax evasion incident,GOME's stock price fell greatly and its market reputation was adversely affected.The State Administration of Taxation,in order to enhance the awareness of corporate tax risk management and guide them in managing tax risks efficiently,issued the "Guidelines for Tax Risk Management of Large Enterprises(Trial)" in May 2009,thereby gives suggestions for companies on how to combine their own characteristics to establish their own taxes.This implies that the implementation of tax risk management has become a priority in corporate work.In the thesis,the author takes R Garment Company as the research object,introduces the corporate tax risk management framework designed by PricewaterhouseCoopers,and conducts in-depth research on the tax risk management of R Garment Company in order to improve its tax risk management and reduce its tax risk.The study is of both great theoretical and practical significance.In the thesis,the author carries out literature study on tax risks and their management and summarizes the relevant tax risk management theories such as the"Internal Control-Integrated Framework" and "Enterprise Risk Management-Integrated Framework" issued by Commission COSO.The theories elaborate the context of the tax risk management framework designed by PricewaterhouseCoopers in the following six aspects:tax environmental risk management,business tax risk management,taxation risk management,tax risk response mechanism,implementation of monitoring and testing,tax auditing and adjustment.Based on the theories,the author takes R Garment Company as the object in the research,introducing its background,current taxation status,and the situation of tax risk management.After that,the author identifies the potential tax risks for R Garment Company by reference to the mentioned six aspects of the PricewaterhouseCoopers tax risk management framework,points out the main problems in the tax risk management and measures the risks using Comprehensive Fuzzy Evaluation Method and Analytic Hierarchy Process.Finally,a tax risk management improvement plan and the corresponding guarantee is proposed for the R Garment Company based on the analyzed six aspects in the tax risk management framework.The study provides the reference of the tax risk management work for companies,especially for garment manufacturing companies,by analyzing the tax risk management problems within R Garment Company.