Research On The Tax Risk Identification And Assessment Of Enterprise Income Tax

The theory of risk management is gradually accepted by the enterprises, and hasbeen widely applied in recent years. As an important part of risk management, tax riskmanagement has been attached to more and more importance. Since tax risk isinvisible and involving in many aspects of the enterprise, it brings enormous damageto enterprises. The tax risk，caused by the change of the external tax environment ortax compliance issues, can leads to great economic, credit and management losses.Compared with other taxes, enterprise income tax is more closely linked with allaspects of production and management of the enterprise. Every economic behavior ofenterprises may lead to income tax issues, which will affect the production andoperation of enterprises. Therefore, the tax risk of enterprise income tax whichhappens with higher probability and brings greater danger is the main tax risk that theenterprises have to faces. As the enterprise income tax policies and regulations arecomplicated, adjusted frequently, the enterprise income tax is paid highly attention toby the tax department and needs high requirements on accounting and is difficult toidentify and assess. Therefore, immediate identification and assessment of the tax riskof the enterprise income tax is crucial for the enterprises to set up the risk preventionstrategies and guard against the tax risk effectively.In recent years, tax risk management is explored and researched by manydomestic and foreign scholars and taken as an important measure in tax managementfor the large enterprises by the State Administration of Taxation. But from theresearch situation, there are some deficiencies in the design of tax risk identificationindex and risk assessment system in current research.In this paper, the tax risk identification and assessment is been studied from theaspect of enterprise income tax, by using the theory of risk management, and theexperience of the tax assessment practices of the tax authorities for reference. Firstly,the research background，research purpose, the research actuality and dynamic areexpounded and the main content, the research methods and the technical route, the innovation and research insufficiency of this thesis are discussed. Then, the relatedtheories of tax risk identification and evaluation are summarized,which include suchgeneral principles as the concept, classification, causes and hazards of tax risk, as wellas the concepts, procedure, prevention, characteristics and principles of tax riskrecognition and assessment.Subsequently, tax risk identification and assessment system construction ofenterprise income tax are discussed in detail in the next three chapters, which showsthe innovation of this paper. This parts focus on the classification, identification,warning, harmfulness, probability analysis and risk grade evaluation of the tax risk ofenterprise income tax, establish an identification index system for tax risk of theenterprise income tax, give a quantitative analysis by using the Analysis of HierachyProcess (AHP) method and FUZZY comprehensive method, and build a set ofscientific, effective analysis and evaluation method for tax risk of the enterpriseincome tax. The final part is a summary of the thesis, in which the research limitationand the future prospect is pointed out.In the examples analysis, by using the risk identification index analysis, theexisting tax risk points of the enterprise income tax is discovered from the case offinancial data analysis, and by using the appraisal theory it is analyzed and assessed,through which the tax risk level of the enterprise income tax is determined. In thisway, it further presents that the identification and assessment system is scientific.