Enterprise Internal Control Management Of Taxation Risk

With the rapid development of the economic globalization and information technology, internal control and risk management are playing an increasingly important role in the survival and development of the enterprise. The enterprises are driven by the internal motivation of maximizing the after-tax interest, which contradicts with the compulsory and free nature of tax revenue. Accordingly, it follows the fact that the enterprise is facing an inevitable tax risk. Recent years have witnessed numerous business failures arising from the disregard and ignorance of tax risk in the enterprises. Consequently, the enterprises have adopted a variety of measures to cope with the tax risk, yet only a systemized design can provide a guiding role for the enterprise to avoid it. Therefore, it is essential for the enterprise to establish an effective and practical tax risk management system.With a view to systemizing the tax risk management, this article aims to make an analysis of the tax risk of the enterprise by referring to the internal control system design, to explore appropriate tax risk control theory, realize the scientific management of the enterprise and guide the enterprise to effectively and properly control and evade the tax risk in the management activities. Combining the theory of risk and risk control, this article defines the tax risk, tax risk management and internal control, analyzes the causes of the corporate tax risks and proposes some measures from the perspective of institutionalizing internal control. This article can be divided into four parts:Chapter One presents a fundamental analysis of internal control, tax risk and tax risk management. This chapter places an emphasis on the definition and multi-level generalization of internal control, tax risks and tax risk management.Chapter Two analyzes the basic issues concerning corporate internal control and tax risk management, which covers their relationship, the present situation of corporate tax risk control management and the necessity of tax risk management in the internal control of the enterprise. Through the analysis of these three issues, this chapter draws up a conclusion that tax risk management is feasible from the perspective of internal control, which lays a foundation for a generic analysis of the design of tax risk management in chapter Three.Chapter Three offers a general analysis of the design of tax risk management in the internal control of the enterprise. This chapter illustrates the theory needed for the systemized design of tax risk management from the aspects of the objective, the principles and the organizational structure, which in turn provides an instruction to the design and application of this systemized design.Chapter Four explores the systematic design and application of the tax risk management in the internal control of the enterprise, to design the risk management system by means of the factors of internal control, build a general framework of tax risk management in the internal control of the enterprise and help the enterprise effectively carry out risk management under this framework.