prvr9nDp2d on "risk management framework"

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business management / 7 '
 enterprises. Performance Evaluation tax risk industry 
 Liu 
 Abstract: This paper points out the mechanism of tax risk can be quantified, the specific construction of the model elaborated. Analysis of the common indicators as the representative selection, function and use of methods, mention 
 out a "cost - benefit analysis of" quantitative tax risks, and proposed corporate tax 
 risk management framework; then formulate tax risk management strategy; finally build a "Tax Wind 
 risk assessment model ". 
 Keywords: tax risk, risk management; performance evaluation CLC: F270 Document code: A 
 Article ID: CN43-1027 / F (2009) 6-077 a 01 Author: Xiamen Fang Chang Group; Fujian. Xiamen, 361101 
 one, the tax risk measure theory 
 tax risk assessment methodology included a combination of qualitative and quantitative techniques. Tax risk is quantified in the number of analysis, rather it is the tax qualitative risk analysis in quality. Both qualitative and quantitative analysis is also closely linked and can support each other and transformation. Is not required to place them quantitatively. Or sufficiently reliable quantitative assessment of the required data is actually unable to obtain or acquire and analyze data are not cost effective, it is usually used qualitative assessment techniques. However, quantitative techniques can lead to higher precision, usually used in more complex and esoteric activities in order to complement the qualitative techniques. Quantitative assessment techniques generally require a higher level of effort and rigor, sometimes using mathematical models and quantitative techniques is highly dependent on data and assumptions supporting the quality of books and has a bite history and allows for prediction of exposure by highly correlated. Therefore, in the quantitative assessment of tax risks, the need to have a large number of valid data for the support, which also requires companies to establish long-term contribution to the collection and a higher rate of tax risk evaluation database. 
 two, tax risk quantification 
 (a) the basic concepts. 
 tax risk quantification can use the "cost - benefit analysis." The method 
 economics economic analysis is an important tool. In the economists, the basic motivation is no different, are in pursuit of utility maximization. The basic code of conduct is to compare the behavior of its revenue and pre-expected costs in size. People in the pursuit of utility maximization process, where they can bring positive effects of the behavior of all factors as income; disutility brought them all the factors that are listed as the cost of their behavior. Economists use behavioral benefits and cost functions to reflect the expected benefits and costs. Made to pay in order to obtain benefits summed up including labor costs, material costs and financial costs. When asked for specific performance, mental, physical consumption, on the physical form and a variety of resource consumption, the consumption of monetary wealth. These costs are called transaction costs. Transaction costs, there is a psychological cost. 
 (two) the "cost - benefit analysis" in tax risk management decision 
 use. 
 a tax planning projections under the program may be less tax 1,000,000 yuan, (where less tax 1,000,000 yuan, compared through the program can be directly calculated that one million yuan, the original pay much, through the budget plan, they can budget it should actually pay more to say, so count the time, no need to gain function) of its expenditures are expected as follows: 
 (1) planning program fee of 200,000 yuan (100 × 20%); (2) implementation of the program staff to appease fee of $ 50,000. (Envelopes, raise in salary, travel, etc.); (3) possible risks expenditures: 
 A. Overdue tax 1,000,000 yuan. 
 Wanfang Data 
 Jane 
 B. Levy fines 180,000. (A year later found that 100 × 5 ‰ × 365). C. The probability of the problem could be dealt by 20%. According to various considerations, the tax inspectors may find or may not be found, so together establish a 20% probability of being detected. 
 calculate tax planning costs: C-C1 + C2 a fl (r, W, c) + f2 (p, q, d); 
 C1-20 +5-25: 
 C2 = (100 +184-100) × 20% × 2-87.2; C = 254-87.2-112.2 '
 here is the static calculation method, and did not consider the factors that sentence and fines calculated. We will be detected if the probability to 10% or 5%, the corresponding costs were 69 million, or 470,000 yuan, in reality, to make the C2 becomes smaller, that is to reduce the probability of being investigated, it must increase investment so that c1 becomes larger, because the need for better planning. In this process, the most important is the "comfort" problem. The biggest problem is a calm, personnel appease difficult to say to what extent things to appease can keep, once out of the same insider reports, then the probability of being detected straight up. 
 Therefore, a tax planning solution cost much, a lot of people into the errors in the calculation. If the plan is to ask people to do, he thinks pay is the cost, if it is our own doing, may be considered to be no cost. This is wrong, because he did not bite the risk of spending can be taken into account. While some people aware of the problem, but could not find appropriate ways. Unable to make rational judgments. "Cost-benefit analysis" is precisely to solve this problem. 
 three, prevention and control of tax risk measures 
 (a) identify management objectives. 
 corporate strategic goals in each period varies. Tax risk management objectives should remain consistent with corporate strategic objectives. So to determine the tax risk management objectives, so that tax risk management purpose more clearly, the development of risk management decisions more targeted. This evil needs to be noted that the goal of determining the tax risk management, corporate management's role is critical. Tax risk management is a rigorous, meticulous planning of the work, we must rely on top-down tight fit. In decision-making due 
 possible to calculate the precise cost of the program of action or consideration. 
 (two) established management systems. 
 enterprise internal control system aims at establishing an effective internal tax-related risk prevention mechanism, to avoid deficiencies in the system which led to an increase in tax-related risks. Development of enterprise internal control system, generally requires a combination of enterprise-specific management framework, operational characteristics, Korea can not be copied or followed by others according to the system. In fact, the tax lawyer before drafting system, we have to fully investigate the enterprise, analysis, institutional trial, to be adjusted according to actual situation at any time, so to establish a mentoring system. Enterprises should not only include the daily management of tax risks, and the need to build in mechanisms for a complete set of system, a good tax risk management system to realize the effective management of tax risks. 
 References: 
 [13 Klawock red. Retail corporate tax director. : Tsinghua University Press. 2007.1,270 ~ 27l 
 [23 Liu Rong. Corporate Strategy Management and Tax Strategies. : Economic Publishing House, 2006.1. 5 ~ 8 
 (Editor; Xie Song) 
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