The Practice And Exploration Of Tax Risk Management

The definition of risk is the possibility of a loss occurring within a certain period of time under certain conditions. Tax risk is that due to some uncontrollable or unknown reasons, such as the loopholes in the system defect, management link, caused by the tax revenue growth fatigue, malignant tax loss, tax on the levers of economic regulation to the weakening of the possibility that eventually led to the government tax revenue and public management functions to match the needs of the adverse consequences. In a broad sense, tax risk includes tax compliance risk and tax law enforcement risk, and this paper refers only to tax compliance risk.The uncertain factors in the process of tax collection and management is naturally inevitable, and in practice the tax authorities can improve tax source management by taking a series of scientific and effective measures to prevent and avoid these risks. The core of building a scientific and strict tax collection and management system is to take effective actions on the source of tax revenue management, including identification, analysis, sorting and handling of different tax risks. These will contribute to reduce the loss of tax revenue, to establish a fair and impartial collection environment, and to improve the tax compliance of the whole society. In this paper, literature research and case study are used to combine research methods. Literature research is based on collecting, reading, finishing domestic and foreign literature and is used to define the meaning of tax risk management, summarize the meaning of the implementation of tax risk management, discuss implementation process and operation process of tax risk management. Case study takes the risk management of general invoices carried out by one taxation bureau of Jiangsu Province as the research object, and analyzes how the grass-roots level taxation bureau, using modern information system, with internal and external information, to put tax risk management into practice. Starting from the theory of tax risk management, the first part of this paper systematically introduces the source of tax risk management theory and the basic practices in this field. Mainly they are the answers to 3 W questions:what, why, and how. The first is what, what is tax risk management. The second is why, why to introduce risk management in China’s tax collection and management. The third is how, namely the process framework and the specific implementation steps taken to manage tax risk. The second part is from theory to practice, introducing how the State Taxation Bureau of Jiangsu Province innovated tax risk management mode in the practical work by taking the ordinary invoice risk management experience and achievements as a good example. The third part, based on the theory of tax risk management research and practice work summary, comes to the conclusion that our implementation of the tax risk management has achieved initial success experience but also exposes deficiencies as the disadvantages of risk management concept, lack of capacity of risk identification and response, unreasonable resource allocation. Aiming at the problems existing in the current risk management, it puts forward some suggestions such as improving tax management mechanism, enriching the tax related information and enhancing personnel training, to deepen the reform of tax collection and management in China. In order to promote the quality and efficiency of tax collection and management, this part also explores how to better manage tax risks through improvements in tax collection and management system and innovations in tax revenue management.