The Present Situation And Existing Problems Of Internal Control Mechanism For Tax Risks Of Large Enterprises In China

The birth of tax risk internal control mechanism in China has gone through a long ferment process. In May 5, 2009, the State Administration of Taxation issued the guidelines on tax risk management for large enterprises (Trial Implementation), requiring enterprises to set up the corresponding tax risk management system according to their own operating conditions, the characteristics of tax risks and the existing internal risk control system. "We should combine the tax risk management system with other internal risk control and management systems of enterprises to form a comprehensive and effective internal risk management system". Since then, the internal control system of tax risks has really been taken seriously by our tax authorities and large enterprises.

At present, there are the following problems in the construction of internal control mechanism for tax risks of large enterprises in China.

First, the supporting system of the internal control mechanism of large enterprises' taxation is not perfect. The theoretical practice of tax management in China started late. As of now, there is not a complete law to guide the establishment of the internal control mechanism of the tax risk of large enterprises.

At present, there is no mandatory requirement for large enterprises to establish internal control system of tax risks, and there is no clear incentive measures. The normative documents issued by the general administration are prominent in guiding and guiding functions and lack of compulsion.

Two, the internal control mechanism of large enterprises is still at a low level. The tax risk of enterprise decision makers is not well understood. The survey found that most enterprises have trained and publicize compliance with tax laws and regulations, but lack of systematic regulations. They are not comprehensive enough and lack sufficient authority. There is no systematic follow-up and handling of tax related risks, resulting in these guidelines and codes "printed on paper and hung on the wall". Some enterprises' decision-making level does not consider tax risk control from the company's strategic level, and thinks that paying taxes according to law is a matter of Finance and taxation department. Corporate decision-making level is the whole of tax risk. Control and control Lack of strategic cognition and consideration, lack of knowledge about the risk of tax risks and potential risks of tax risks.

In addition, some departments and responsibilities set up by some enterprises are rather confusing. If some enterprises set up specialized tax risk internal control departments, some enterprises have set up risk control departments, others are two departments coexist. The implementation of responsibility for guarding against tax risks is mainly concentrated in relevant departments, some in the financial sector, some in the internal audit department, and other departments lack of coordination, inadequate co-ordination, weakening the enterprise to guard against. Tax risk The overall effectiveness.

Three, the tax authorities should not promote the internal control mechanism of large enterprises. On the one hand, the current management system is not yet perfect. At present, although the General Administration has clearly defined the responsibilities of the General Administration and the provincial departments of large enterprises, there are no corresponding large enterprise management organs at the municipal and county level tax authorities. There is a cross between the management departments at all levels and the departments at the same level in the management, inspection, taxation and taxation services in terms of management objects, specific functions and business relations.

On the other side, tax authority The service, management capabilities and experience need to be improved. Due to the influence of personnel, tax information, information level and quality of risk indicators, tax authorities can not accurately identify tax risks of large enterprises accurately, comprehensively and systematically, and form risk assessment reports. Through regular feedback to enterprises, enterprises should be guided to avoid, control and guard against these risks.

Large enterprises have complex organizational structure, many specific production and operation projects, high level of information application, and strong technological, organizational and managerial innovation capability. Most of the tax personnel at the grass-roots level are devoted to daily work such as reminder, daily inspection and data collation. It is difficult to have a lot of time and energy to conduct pre tax risk investigation, such as tax analysis, tax assessment and daily inspection, which lead to meticulous management and services.