A Study On Risk & Prevention Of Enterprise Tax Planning

Every tax payer has the motivation of lessen the tax payment since they pursue the maximum of the enterprise value by minimizing the input and maximizing the output. This is the economic base of tax planning. Nowadays people have realized the importance of tax planning while under-estimation of the tax planning risk will lead to the waste of tax payer's time and money. Further more, they will involve in the tax dodging or tax fraud.This article combines the theoretic analysis with case study, qualitative analysis and quantitative analysis together. Based on the factor analysis model and cause analysis of tax planning risk, this article makes comprehensive and systematic study of the tax planning theory and also make proposal of preventive measures of tax planning risk.This article consists of five sections. Part one mainly focus on the connotation, classification, function of the tax planning and the its risk and define the concept of tax planning risk in a broad sense. Part two lays emphasis on the cause theory of tax planning risk and apply this to theoretic analysis. Part three applies factor analysis model and case study to make systematic analysis of the cause and phenomena of tax planning risk. Part four gives proposal on how to prevent the tax planning risk. Part five concludes that an enterprise must have the sense of risk in choosing and implementing the tax planning and take measures to prevent the risk. Otherwise the enterprise might fail and be punished by the law.