The Legal Prevention Of Tax Audit Risk

Tax audit risk is the possibility of tax inspection authorities and their staff undertaking legal responsibility, because they harm the interests of the taxpayer or the country’s. Tax audit risk has four characteristics, objective, complex, uncertain and controlled. The appearing of tax audit risk make the national tax, authority of tax authorities, inspectors interests and legitimate rights of taxpayers have possible to be violated. Once this possibility becomes a reality, the consequences will be very serious, so it is necessary to control the tax audit risk. According to different criteria, tax audit risks can be divided into different types. But it is most important to divide the tax audit risk into internal and external risks, inherent risk and stochastic risk, according to distinguish between different sources and nature. Because it determines the strategies and priorities of tax audit risk control. Low capacity inspectors, flawed legal system, limiting role of regulatory system and the lack of social security is the main reason for tax audit risks arise. Stable legal is the basis for law enforcement of tax inspection authorities and their staff, so only legal measures can fundamentally control the tax audit risk. According to the actual situation of China’s tax inspection, we can achieve the purpose of reducing the probability of tax audit risk and avoid damaging consequences, by formulating tax audit law, regulating discretion, improving the regulatory system and establishing legal accountability mechanisms.