Countermeasures And Suggestions For The Construction Of Internal Control Mechanism For Large Enterprises' Tax Risks

The so-called tax risk refers to the uncertainty existing in the tax related activities of enterprises, as well as the judgment and recognition of this uncertainty by tax enterprises and enterprises. Because of the influence of improper behavior and tax policy changes, the tax related behaviors of large enterprises can not accurately, fully and timely comply with the provisions of tax laws and regulations, and suffer the risk of legal sanctions, financial loss or reputation damage.

Large enterprises are the main source of national tax revenue and have an important impact on the development of national economy. From the perspective of tax administration, the State Administration of Taxation has adopted the method of listing names to identify large enterprises. At present, the first 45 large enterprises have been selected as designated enterprises. Take the 45 point linked enterprises of the State Administration of taxation as an example, the actual tax paid by these enterprises is about 20% of the national tax revenue each year.

Because of the large organization structure and complex production and operation of large enterprises, diversified enterprise groups operate across regions and across sectors. Tax related matters are various, important and complex, and tax management is difficult. Because of the large business volume of large enterprises, once the tax violations occur, the tax, fines and late fees involved are enormous. More importantly, it will also bring significant reputation losses to enterprises, and may cause enterprises to fall into a crisis, seriously affect their development, and even bring about fluctuations in macroeconomic operation.

The internal control mechanism of tax risk in large enterprises is an important part of the internal control system of enterprises. It is a series of self regulatory systems and procedures for tax risk management established by large enterprises in order to guard against tax risks. The specific embodiment of enterprises is to implement effective internal tax management, which is an important part of the internal control system and an effective means to guard against tax risks. Specifically, it is implemented by the board of directors, management organizations and all staff members of large enterprises. The aim is to ensure that enterprises achieve a series of internal processes and norms in the goal of creating tax value on the basis of guarding against tax risks.

To promote the construction of internal control mechanism for tax risk in large enterprises, we not only require tax authorities to continue to perfect relevant systems and regulations in the top-level design, but also strengthen cooperation between tax and enterprises, and establish a mechanism and platform for effective exchange and communication between tax and enterprise. Not only by strengthening tax administration and tax service, helping and encouraging large enterprises to establish and perfect the internal control mechanism of tax risks, but also actively utilizing the advantages of large business management talents, knowledge and experience, and promoting the improvement of tax authorities' own business management system and the improvement of their practice level, forming a good situation of mutual promotion and common improvement.

To strengthen large enterprises Tax risk The following suggestions are made for the construction of internal control mechanisms:

First, we should improve the system standard of the internal control mechanism of large enterprises' tax risks, and formulate relevant laws and regulations. At present, the construction of internal control mechanism for tax risk in China's enterprises Law It is still blank. The relevant departments should incorporate the construction of the internal control mechanism of tax risks into the national legal category as soon as possible, so that large enterprises can have clear legal basis when dealing with internal tax risks. The tax authorities have a clear law enforcement basis in carrying out tax risk management for large enterprises.

Two, improve the internal control mechanism of large enterprises tax risk organization, scientific and refined level. A relatively independent tax administration department is set up for large enterprises with large industry span and complex tax affairs. The establishment of a tax risk management group for large enterprises with relatively simple business operations and complex tax affairs belongs to the finance department. For large enterprises with relatively simple operation and relatively simple tax affairs, tax director or tax administration post should be set up.

Three, give full play to tax authority The role of internal control mechanism in tax risk of large enterprises. On the basis of voluntariness, equality, openness and mutual trust, tax authorities sign tax compliance agreements with enterprises and jointly undertake tax and enterprise cooperation to prevent and control tax risks. After the tax and enterprise confirm the intention of signing the Tax Compliance Agreement, they will conduct joint consultations, drafting the agreement text and signing agreements. The tax authorities help enterprises understand the relevant knowledge of tax risks by mastering corporate governance structure, institutional setup, personnel division and internal audit, and familiarise them with potential tax risks and how to deal with them.