Research on Tax Risk Management of Small and Medium-Sized Enterprises based on Internal Control Perspective

Hui Liu; Ping Qin

doi:10.54097/bv5m7c74

Authors

Hui Liu
Ping Qin

DOI:

https://doi.org/10.54097/bv5m7c74

Keywords:

Internal Control, Risk Prevention, Small and Medium-sized Enterprises, Tax Risk

Abstract

With the continuous development of China's domestic market economy with the reform and opening up, it has formed a diversified pattern, and the main body of the market has been continuously enriched, among which, the number of small and medium-sized enterprises has increased significantly, which has played a major role in China's social progress and economic growth, and has become one of the main components of the national economy. In recent years, the reform and development of the Party and the state has always placed small and medium-sized enterprises in an important position, and the state has successively introduced various tax and fee reduction policies.However, with the rapid development of small and medium-sized enterprises, they are limited by the quality of personnel, tax awareness and other problems, tax risks are becoming more and more prominent.With the continuous optimization of China's tax system, the implementation of the fourth phase of the Golden Tax, and the wide application of big data technology, the digitalization and accuracy of tax supervision have been enhanced.Therefore, changes in the external regulatory environment make it particularly important for smes to enhance their awareness of tax risks and to prevent tax risks according to their actual conditions.And how to implement internal control is an effective means to prevent tax risks. By comprehensive use of literature induction, sample investigation and other research methods, this paper studies and analyzes the tax risks of small and medium-sized enterprises, combines the operation and management characteristics of small and medium-sized enterprises, and analyzes and summarizes the tax risk characteristics of small and medium-sized enterprises according to the framework of five elements of internal control (internal control, risk assessment, control activities, information and communication, supervision). It is also used to guide the framework of tax risk control and management optimization of small and medium-sized enterprises, and gives targeted tax risk prevention schemes for enterprises' reference.

Downloads

Download data is not yet available.

References

[1] Zhiyong Guan, Research on the construction of Enterprise Internal control mechanism to prevent tax risks [D]. Institute of Fiscal Science, Ministry of Finance,2015.

[2] Cunkun Cui, Thinking on strengthening corporate tax risk management [J]. Theoretical Observation,2017(6):75-77.

[3] Xueqin Liu,Research on the application of Tax accounting in enterprise financial management under the new economic situation [J]. Finance and Accounting Learning,2022(18):139-141.

[4] Zhenhua Li, Research on internal tax control and risk management of Chinese small and medium-sized enterprises [J]. Enterprise Reform and Management,2021(17):155-156.

[5] Shuang Gao, Research on the influence of internal control entities on the effectiveness of Internal control [J]. Chinese Certified Public Accountants,2020(02):48-53.

[6] Li Cheng, Ying Chen, On the construction of internal tax risk control system for small and micro enterprises in China [J]. Tax Research,2017(09):126-129.

[7] Xuanli Hu, Research on tax risk management based on internal control [J]. Economic Management Abstracts,2020(16):51-52.

[8] Jinping Gao, Some suggestions on strengthening tax risk management under the background of "Treating tax with numbers" [J].Tax Research,2021(10):127-132.

[9] Xiao Zhang ,Enterprise Tax risk management: Risk identification and Prevention [J]. Finance and Accounting. 2013 (16):29-31.

[10] Wei Luo ,Thinking about the causes of enterprise tax risk [J]. Friends of Accounting,2014(06):23-27.

[11] COSO.Internal Control.Integrated Framework [S],2011.

[12] Peng, X.J., et al. Effect Evaluation of Replacing Business Tax with VAT in Real Estate Industry. Taxation Research,2015:37-41.

[13] Morrill,Janet, Morrill Cameron. Internal Control Assessment and Interference Effects.Behavioral Research in Accounting, 2012, (1):73-90.

[14] Brendan Epstein,Rahul Mukherjee,Shanthi Ramnath.Taxes and International Risk Sharing[J].Journal of International Economics, 2016,(8).

[15] Tom Neubig,Balvinder,Sangha.Tax risk and strong corporate governance[J].Tax Executive,2004,(3):4.

[16] COSO.Internal Control Integrated Framework [R]. Jersey City, 1992.

[17] Lourens,Christine M.Stepsto Manage Overall Tax Risk [J]. Financial Executive,2016(10):30-35.

[18] Marius van Blerck.Tax Risk Management [R].Bulletin for International Taxation,2005(07).

[19] Jeffrey Doyle,Weili Ge,Sarah Mc Vay.Determinants of weaknesses in internal control over financial reporting[J]. Journal of Accounting and Economics . 2014 (1) :29-31.

[20] Mulliga, Tax Risk Management: Evidence from the US[J]. Sweet&Maxwell, 2009, 44-45.

[21] Marina V. Shtiller, Vera L. Nazarova, Irina V. Selezneva, et al. Tax Risks in the Company's Accounting System: Essence, Identification and Control[J]. International Journal of Economics and Financial Issues, 2016, (4):1791-1797.

[22] E. U. Strelnik . Problematic Aspects of Corporate Tax Risk Empirical Analysis[J]. Asian Social Science, 2015, (10):374.

[23] Eva Eberhartinger, Maximilian Zieser, . The Effects of Cooperative Compliance on Firms' Tax Risk, Tax Risk Management and Compliance Costs[J]. Schmalenbach Journal of Business Research, 2021, 73(1):1-54.

[24] Botha, Joubert. Tax risk management - cutting through thecomplexity : features - business income tax[J]. TAX talk, 2015, (54):54-57.

[25] Morrill,Janet,Morrill Cameron. Internal Control Assessment and Interference Effects[J]. Beharioral Research in Accountin, 2013 (1):73-90.