Research On Tax Collection And Management Risks And Risk Control In China

Risk has been being since the human society appeared. It exists in all management activities of any organization. Risk management is a new management subject, which focuses on how risks occur and how.to control them. Due to its advantages such as strong points,high efficiency and low costs, risk management has been developing quite rapidly since it emerged in the middle of 20th century. Up to now, it has built up a integrated theory system in the organization management activities, especially in the field of enterprise internal control. Also, the theory system has been proved by practice.Tax has income function and regulation function, which make the tax revenue not only an important means to organize fiscal revenue but also a macroeconomic regulation lever. So to ensure a safe and efficient tax collection is extremely important in maintaining the development of the macroeconomy healthy and stable. In the late 1990s, it draws attention that risk awareness should be introduced into tax collection and administration. Some western countries such as OECD, EU have embarked on the corresponding research, and found more mature risk guidelines and specific methods to control tax collection and administration risk. Sadly there is not much pointed and systematic research in our country now. Actually, the research on tax collection and administration risk is a front-line task in China.In recent years, the tax administration reform in our country has made a steady progress along the scientific and standardized track, and has achieved certain results. However, with more social and economic complexity, the tax collection and administration is facing more uncertainty. The growing problems of tax revenue loss, repeated taxpayers'unconformable acts, and increasing tax administrative disputes, bother the tax authorities'daily work, and greatly hinder the tax efficiency improvement. In the perspective of risk management and control, to analyze risk factors and the resulting losses in tax collection and administration, to establish a risk control framework in tax collection and management, and to ensure tax collection and management activities can be carried out efficiently, makes great practical sense.This paper aims to bring the concept of risk management into tax collection and management area, to inspect the current situation of tax collection and administration risks, to analyze the reasons for tax collection and administration risks, to propose a basic risk control framework, and to raise suggestions to optimize the tax collection and administration environment. The article is divided into five parts:PartⅠ:an introduction of the paper. It mainly discusses the background and significance, research ideas and methods, the innovations and inadequacies of this paper.PartⅡ:the introduction of tax collection and the risk. At the beginning of this part is fundamental analysis of risk, risk theory, result of the use of risk theory in business management. Then the paper explains how to extend risk theory to tax collection activities, and the necessity and feasibility of such extension, which is also the topic of this article.PartⅢ:the general analysis of tax collection and administration risk. Based on clear understanding of tax collection and administration activity meaning,objectives,content, the paper concentrates on the research on the related aspects of the tax collection and administration risk, such as content,composition,,characteristics,types and impact. Such analysis paves for further discussion of the causes and control of tax collection and administration risk.PartⅣ:the analysis of the status of tax collection and administration risk in our country. This part is the inspection of current situation. It discusses current common status of tax collection activities, the risk of serious losses caused by inadequate control, and the existing experimental work in such risk control. The concentration of this part is the research on reasons for tax collection and administration risk. The division between controllable endogenous risk factors and exogenous non-controllable risk factors, is on purpose of raising suggestions respectively.PartⅤ:the basic framework of risk control of tax collection and administration--the core of the whole article. This part combines successful experiences from EU countries with practical situations in China. Then it puts forward the basic risk control framework for tax collection and administration on such a train of thought:to establish risk control goals, to identify and measure risks, to develop and implement risk control programs, and then to evaluate risk control effects. Finally, some suggestions to optimize the tax collection and administration environment are given.