Time for large business enterprises to establish a sound internal tax risk control system
In order to further improve tax services and strengthen the tax administration for Large Business Enterprises (LBEs), the State Administration of Taxation (SAT) recently issued a circular on the decision to conduct a comprehensive tax risk administration for eight of the SAT’s directly managed LBEs in the second half year of 2014 (the Decision). The Decision put forward a detailed guidance on the comprehensive tax risk administration (Tax Risk Administration) including the objectives, work allocation by various levels of tax authorities, working tasks by stages and the timeframe. The Decision is the first for the SAT to publically release clear guidance on conducting a nationwide investigation on tax matters for LBEs.
This news flash will cover the detailed tasks of the Tax Risk Administration, its impact on LBEs and our suggestions on how to enhance the internal tax risk control system of an enterprise.
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