Research On Tax Planning Risks Based On Financing Decision In Enterprises

Financing decision, a major work of financial management, is the precondition of enterprise's operation and investment. The object of financial management is the circulation and turnover of cash flow, while tax disburse is just cash outflow. Therefore, financing decision must be related to tax in the process of financial management. Tax is one of the factors which must be considered in enterprise's financial decision.Taxation has the characteristic of compelling, free and fixity. On the basis of abidance of tax laws, enterprises making tax planning on financing will help to make correct financing decision and financial management, so as to realize the financial aim of owners'profit after tax maximum at the same time of tax-planning. However, the object of financial management is not only the maximum of profit, but also the match between the risk and profit according to the principle of"Profit-Risk". Tax Planning involves the factors of policies and environment etc. It brings the profits to enterprises while the corresponding risks arise at the same time. Therefore, the most advisable object of financial management is the maximum of tax planning in profit under the minimum in risk.This thesis introduces a series of financing-modes and analyses the meaning of tax planning and the precaution of risks in theory. On the basis of the Tax Planning Risk Model, it analyses the tax planning profits and corresponding risk, manifesting that the tax planning risk is the important factor to be considered in the process of financing decision. Then, the thesis demonstrates that most of public listed companies don't take the tax-planning-risk into account through the data analysis in the stock market. And most of public listed companies have the low rate at the debt-to-asset ratio. So we recommend that the public listed companies should improve the financing activities. Furthermore, I suggest enterprises to set up the precaution mechanism of tax planning risks in order to prevent the potential risks in macroscopic and microcosmic ways.