Research On Tax Risk Control Of L Company Related Transactions

In recent years,more and more multinational groups have used connected transactions to achieve corporate profit maximization and globalization strategic goals.As a double-edged sword,connected transactions can improve efficiency,reduce transaction costs,and achieve maximum profitability of the group.On the other hand,unfair trading prices may occur,and there are tax risks such as transferring profits and paying less taxes.With the continuous development of China's"One Belt,One Road"strategy,connected transactions within and between multinational groups are becoming more frequent.How to rationally use related transactions to maximize the Group's interests and effectively prevent and control tax risks is an important topic that enterprises need to study now.The research in this paper focuses on the tax risk issues of connected transactions.On the basis of the research on related theoretical concepts and literature at home and abroad,this paper takes L company's related transaction tax risk problem as the research object,combines the actual situation and industry characteristics of L company,use financial indicators and comparability analysis methods to identify and estimate the tax risks of L company's related transactions.According to the functional and risk analysis,selection of appropriate transfer pricing methods,combined with the comparability analysis,we can make a specific assessment of these two related transactions.The evaluation results show that the two related transactions of L Company have transferred profits and underpayment of taxes in the past five year,it may cause taxation risks that the tax authorities may make special tax adjustments.L company should actively take measures to control tax risks.On the one hand,it declares the tax payment on its own to avoid the special tax adjustment of the tax authorities;on the other hand,it should improve the quality of the data during the same period,adopts the advance pricing arrangement,strengthens the internal tax risk prevention and control mechanism,and communicates with the tax authorities.