Research On Enterprises’ Oversea Investment Of Tax Risk Management

With the rapid development of china’s economy and the continuous improvement of the market’s opening degree, the Chinese enterprises’ overseas investment is growing. In terms of size, the Chinese enterprises’overseas investment flows and stocks are living in the world. However, with the rapid development of China’s central enterprises’overseas investment, the risk is also increasing. Due to the lack of international business operations and management experience, most of the central enterprises which investing overseas i lack of systemic risk management measures and huge losses due to improper risk management events have occurred. As an important pillar of the national economy, the central enterprises to invest overseas, not only to extend the industrial chain and improve competitiveness on the international market, but also develop the offshore resources, and to protect the stability of our resources and energy. Thus central enterprises’overseas investment have large-scale specific, the economic losses which bring from problem are also enormous.In a variety of overseas investment risk, tax risk is very important which frequency of occurrence and influence is so large. When China’s central enterprises investing overseas, their tax risk awareness is weak and are short of risk management personnel. There are few enterprises have been establish a comprehensive program of tax risk management system. Ignoring the tax risk management has bring serious problem, on the one hand, leading to the central enterprises pay more taxes unconscious, not make good use of tax treaties, adding to the corporate tax burden; On the other hand, has also led the central enterprises pay less tax unconscious, committing foreign tax law, had an adverse impact on the company’s reputation and government relations. These are not conducive to foreign investment and operation of the enterprise. There are so many cases that central enterprises bear overseas losses because of lack of tax risk management. For example the tax burden of double taxation is an important reason leading to the failure of the COVEC’s highway project in Poland in2009. The lack of in-depth research and systematic risk assessment of programs when making investment decision lead to the COVEC could not complete the original budget, resulting in huge losses. Therefore I believe that the study of how to manage the tax risk for the central enterprises overseas investment has important practical significance. In this paper, I will analyze the central enterprises overseas investment process greatest impact on tax risk factors based on analysis of the actual situation of the central enterprises overseas investment tax risk, combined with the risk management theory. The article can be divided into five parts, the first part of the expression of the central enterprises’ overseas investment and risk management of the status quo, the importance of risk management and the urgency of the central enterprises overseas investment. The second section is devoted to the analysis for the central enterprises overseas investment tax risk, discusses the concept of risk from the tax, classification, and the necessity to manage. The third part of a central enterprise as an example to introduce how taxes from both qualitative and quantitative risk assessment, which is partly tax risk management in the most basic and the most important aspects. The fourth part based on the third part of the continued enterprise case to explore enterprise tax risk management system design from the process level. The last part of the proposed tax generally applicable to central enterprises overseas investment risk prevention recommendations, because the fourth five-part design corporate tax risk management system is based on case enterprise as a template, and may have some industry and regional limitations, so the last part of The complement of general applicability suggestions to improve the risk management system proposed in this paper.