Research On Tax Risk Management Of A Construction Company Based On AHP-entropy Weight Metho

The government’s tax reform,along with its betterment of laws and regulations,has caused enterprises to confront ever-growing uncertainty in the market competition,thus raising the likelihood of enterprise tax risks significantly.Tax authorities have,due to the increasing popularity of big data technologies,started to employ them to bolster their oversight of enterprises’ tax declarations.The severity of the tax risks encountered by businesses in their daily operations and management is augmented.Consequently,it is of great practical importance to bolster the investigation of enterprise tax risk management in this new context.A comprehensive review of the theories of risk management and tax risk management,as well as the characteristics of the construction industry,has been used as the case enterprise for this paper.Through field visits and conversations with management and relevant specialists,a thorough understanding of the case enterprise is attained.By utilizing the tax risk list and financial statement analysis techniques,Company A’s basic information and financial situation can be analyzed to uncover any risks that may exist within the enterprise.To ascertain the origins of tax risk,Company A’s tax risk status was utilized to construct an AHP-entropy weight method tax risk evaluation model.By means of a fuzzy,thorough assessment technique,one can assess the tax hazard.Exploring the tax risks of enterprise A,a blend of qualitative and quantitative approaches is employed.Finally,the tax risk management strategy of A company is explored.Analysis of Enterprise A has revealed(1)a lack of awareness of risk management,both internally and externally,and a poor financial operation accounting;(2)an absence of high personnel quality requirements;(3)an inadequate management of tax-related processes;(4)an inability to manage invoices in accordance with the requirements;and(5)a lack of effective communication,supervision,and improvement.An examination of both internal and external factors is the main focus:internal causes include a lack of recognition of the tax hazard of the management,indistinct division of tax management duties,and the absence of a comprehensive tax risk assessment system.The absence of a tax risk assessment system,the sluggish institutionalization of such assessment,and the lack of proficiency in tax risk assessment roles.The external reasons mainly include the complicated environment of tax law,the problems arising from the supervision of tax authorities,and the characteristics of the construction industry.Proposals for the tax risk management of Company A are presented in four distinct ways: a comprehensive implementation of the company’s tax risk awareness,the establishment of a successful tax risk assessment system.Enhancing the tax-related communication of data and augmenting the tax-related risk oversight and response system.It is our expectation that the research in this paper will aid a company in augmenting its cognizance of tax risk management,laying the groundwork for its prosperous and swift growth,and furnishing a benchmark for other comparable firms.