On The Tax Risk Management Of Conglomerates

Along with the rapid development of Chinese economy in recent years,a group of large-scale conglomerates has emerged.The characteristics of such conglomerates such as conglomeration,complicated business and international operations,and the rapidly changing tax systems at home and abroad lead to increasingly prominent tax risk issues of conglomerates.Over the past few years,Chinese and foreign academic circles have started to study the tax risk management of conglomerates.In practice,however,the implementation of tax risk management in conglomerates is not optimistic.The tax risk management of most enterprises is still in its infancy and the specialized guidance in this aspect is urgently required.From the perspective of conglomerates,this paper adopts such research methods as literature research,induction and deduction,cites the detailed data of Group R's tax risk management,summarizes the previous studies on the tax risk management of conglomerates,then conducts a careful and systematic analysis of the causes of Group R's tax risks and the problems existing in its current tax risk management,and finally puts forward some suggestions on how to improve Group R's tax risk management.This paper holds that the tax risks of conglomerates are mainly manifested in two aspects.Firstly,conglomerates may misinterpret the tax law and fail to pay taxes on schedule,thus resulting in fines.Secondly,conglomerates may fail to make full use of preferential tax policies to save tax reasonably and legitimately,thus increasing the burden of taxation.In allusion to the first aspect,conglomerates should center on tax compliance,start with establishing the goal of tax risk management,rely on setting up a tax risk management organization,carry out the tax risk identification,evaluation and response procedures,facilitate the information communication inside and outside the conglomerates,and supervise and improve such communication dynamically,thus constructing a systematic tax risk management mechanism.With regard to the second aspect,conglomerates can reduce their tax burden legitimately and reasonably by getting familiar with tax planning methods and preferential tax policies,which is a beneficial extension of constructing their tax risk management system.Besides,in view of the cost-effective principle,this paper specially discusses the key points in conglomerates' tax risks(including the tax risks of main tax categories,how the changes of Chinese tax policies influence conglomerates,and China's tax inspection focuses in recent years)in the hope of providing positive ideas for constructing the tax risk management mechanism of conglomerates in an all-round way.