Research On Risk Management And Control Of Tax For G CO., LTD

Since China’s reform and opening up, China’s achievements in economic has attracted worldwide attention, meanwhile the domestic enterprises suffers from the rapid economic development. According to statistics, the number of the world top500enterprises in China is more than95in2013. At the same time, the risk rises with enterprises seize the opportunity of continuous development. Among different types of risks, the tax risk has become more and more unavoidable. The large enterprises has higher probability of tax-related matters than smaller companies, reasons include: the complex production process, business involved in different fields, difficult tax accounting, uneven personnel quality, makes. On the other hand, the risk system develops quickly with the deepening of economic reform in China, which makes continuous improvement of the tax laws and regulations. As to enterprises, the improvements require more attention to the change of tax system, how to effectively avoid the tax risk, how to effectively utilize the tax policy to make maximize profit.This study will use G corporation as a sample, start with the concept of risk management, the then introduce the tax risk management, finally summarize the production and operation, the main business processes, production and sales. Through data analysis, questionnaire survey, teasing out the possible tax risk of enterprises, and find out the source of different risks. At the end of the article, we will explore tax risk management and prevention and measures in risk system for G corporation according to the specific situation and the state administration on taxation of the large enterprise.There are reasons to take G corporation as a sample:First, G company has complex organizational structure, different kinds of business and accounting period is long, which make the tax risk is unable to avoid. Second, G company is the important tax source enterprises, which means guidance before tax is very necessary. Third, the management of tax risk is not only the need of the enterprise, but also is the requirement of the tax authorities, which possibly blamed by taxpayer on dereliction of duty and malfeasance.In conclusion, this article will start with the research background and the concept of tax risk, then analyze the existent tax risk within the enterprises under the current tax system, finally make improvement on tax system and build tax risk management model.