Study On Tax Risk Management In The Merger And Reorganization Of S Bank

Preventing and defusing financial risks,especially regional and systemic financial risks,is a major task for financial work at this stage.Minimizing tax risks in the financial sector is an important part of preventing and defusing systemic financial risks.With the acceleration of innovation and transformation in the financial industry in recent years,as well as the impact of COVID-19 and economic slowdown,some small and medium-sized banks are facing great pressure in capital supplement.With the accelerated exposure of underlying asset risks,regional merger and reorganization has become an optimal way for small and medium-sized banks to get out of difficulties.How to prevent the potential risks of merging and reorganizing banks,especially the tax risks derived from the merger and reorganizing transactions,is very important for the merger transaction and subsequent operations.This paper takes COSO-ERM risk management theory as the analysis framework.The current situation of tax risk management of S Bank was mastered through questionnaire analysis.Meanwhile,a tax risk management analysis matrix with S bank as the target object was designed.The weak points of tax risk control in the three stages of planning,implementation and integration of S Bank’s merger and reorganization were analyzed by comparative research method,and the causes of the problems were summarized.It focuses on the explanation of the special business related to the merger and reorganization,such as the package and transfer of non-performing loans,debt assets and so on.It is found that the information communication with the competent tax authorities of the merged banks was ignored in the planning stage of the merger and reorganization of S Bank,and the lack of historical risk management of the loan transfer losses of the merged banks led to tax risks.In the implementation stage,S Bank is faced with a large asset disposal loss due to insufficient tax risk assessment of debt offset assets.In the integration stage,a comprehensive tax risk management mechanism adapted to the management requirements and actual situation of S bank has not been established in time,restricting the level of tax risk management of the whole bank.Based on this,the COSO-ERM risk management framework is adopted to put forward targeted optimization suggestions for the tax risk management in the merger and reorganization process of S bank,including emphasizing the information symmetry with the merged bank regulators,strengthening the tax risk assessment of the merged bank’s historical loan transfer losses and debt assets,and establishing a tax risk management system step by step after the merger.This paper hopes to provide reference for the tax risk management of the merger of small and medium-sized banks in China.