Research On Y Corporate Tax Risk Management

" Tax event" in recent years becomes a hot keyword in network searching. A variety of tax cases are common and always sound the alarm to enterprises. KPMG, one of the world’s top four accounting firms, has been under investigation for selling fraudulent tax avoidance products to wealthy customers in the United States, resulting in a loss of a large share of the market. Because of suspicious tax evasion, Google was investigated by the tax department which disappointed many Chinese fans. Gome and Suning are suspected of hiding income and investigated by national tax administration, harming their credibility; Ping An suffered from tax inspection, therefore, its financing plan worthy of billions in capital market was affected. Sichuan ChangHong was investigated and punished by national tax department because of falsely making out huge bill of value added tax, resulting in the sharp falling of share price. The tax evasion cases made enterprises subject to legal sanctions, economic loss and reputational harm. More serious cases can even leads to enterprise bankruptcy. Therefore, the tax risk management plays an important part in enterprise risk management and it is imminent to apply. Research on tax risk management is also more strategically significant.The Sarbanes Act of the United States marks the formal beginning of the study on enterprise tax risk management, which is the first discipline for the management of tax risk. Since then, foreign experts and scholars began to further study in tax risk theory and the event. The research on tax risk management in China started relatively late. On May 2009, the State Administration of Taxation issued the "Guidelines for the management of tax risk of large enterprises (for Trial Implementation)". But the research and the theory conducted by scholars and experts on tax risk management are still far more theoretical than practical, especially the case study. Therefore, this paper selects Y company as the research object of tax risk management, as to build the tax risk management mechanism for Y company, and provides a sample for similar companies.Y company is a warehousing logistics enterprise. It is in the early stage of entrepreneurship, thus, there are a lot of problems in the internal control. In 2014, Y company came across a tax inspection with significant tax issues, and was punished by the tax authorities. In addition, Y will be completely changed to VAT taxpayers after May 1,2016, which means that it will face a greater tax risk. Y management of the company began to focus on the company’s tax risk, and realized the importance of the establishment of corporate tax risk management mechanism.This article carries out the work from the following five aspects:firstly, this paper introduces the research background, research significance, literature review, research content and methods. Secondly, it analyzes the current situation of Y company and the status of tax risk management. Thirdly, it analyzes the Y company’s tax risk quantitively and qualitatively, as well as the reasons. Fourthly, based on the comprehensive risk management theory and the overall requirements from the "large enterprise tax risk management guidelines (Trial)" issued by the State Administration of Taxation, it builds a set of appropriate tax risk management mechanism for Y company. Finally, it introduces the protection methods for tax risk management.