Research on Tax Risk Management and Control Strategy of Small and Medium Enterprise

Abstract

Abstract. China's small and medium-sized enterprise is facing many risks in the management. Tax risk is the necessary factor for the small and medium-sized enterprise financial risk, the control strategy can avoid the financial risks effectively, and further reduce operating loss, promote the long-term development of small and medium-sized enterprises. Based on the analysis of the characteristics and causes of tax risk of small and medium-sized enterprises in China, this paper, based on the current situation of tax risk control of small and medium-sized enterprises, and then builds a well-defined tax-enterprise relationship from strengthening the awareness of corporate tax planning, establishing tax risk control system, The establishment of tax risk assessment of the early warning mechanism and other aspects of the corresponding control strategy.

Enterprise Financial and Tax Risk Management Methods under the Background of Big Data

“…In July 2012, the National Tax System Work Conference on Deepening Tax Collection and Management put forward the general requirements for further deepening the reform of tax collection and management [20,21]. It has established a modern tax collection and management system based on the premise of clarifying the rights and obligations of both parties, risk management as the guide, professional management as the foundation, key tax source management as the focus, and informatization as the support.…”

The effect of tax training and tax understanding on tax compliance

“…It is related to the independence of MSMEs that do not depend on stocks (investors) and bonds (creditors) and have an extreme dependence on major funders (Asai, 2019) so that MSMEs have strong relationships with banks. Then, this complexity is also supported by the presence of insensitivity to tax risk, imperfect internal management systems, lack of standardization of the market environment, and lack of government socialization of applicable regulations (Xu & Huang, 2017) in this case in Indonesia, Government Regulation No. 23 of the year 2018.…”

“…First, insensitivity to tax risk, lack of human resources from the financial department who understand accounting, finance, and taxation comprehensively, causing a lack of awareness of the importance of paying taxes, this is also associated with higher costs if hiring HR licensed to taxation sector (Xu & Huang, 2017). Second, there is a lack of perfect integration of the internal management system of MSMEs, which is associated with no main HR task that focuses on taxes and tends to ignore financial management at the tax level (Xu & Huang, 2017). Third, the lack of standardization of the market environment is associated with a lack of standardization of the operating process, agreements with suppliers, vendors, and target markets, which tend to have a lousy atmosphere (Xu & Huang, 2017).…”

“…Second, there is a lack of perfect integration of the internal management system of MSMEs, which is associated with no main HR task that focuses on taxes and tends to ignore financial management at the tax level (Xu & Huang, 2017). Third, the lack of standardization of the market environment is associated with a lack of standardization of the operating process, agreements with suppliers, vendors, and target markets, which tend to have a lousy atmosphere (Xu & Huang, 2017). Finally, the lack of government socialization of applicable regulations (Xu & Huang, 2017) -the change in tax rates for MSMEs from 1% to 0.5% causes MSMEs not to be adequately educated, so they tend to ignore and feel heavy to pay taxes.…”