Abstract: At present, China's national economy is developing rapidly, which is inevitably related to the great contribution made by the overall strength of small and medium-sized enterprises. However, the overall tax burden of small and medium-sized enterprises in China is still high, which leads to the gradual increase of tax risks, which will have a direct or indirect impact on the production and development of small and medium-sized enterprises and will lead to bankruptcy and closure. Therefore, tax risk prevention and control is of great significance to SMEs. This paper summarizes the tax risks of small and medium-sized enterprises, analyzes the causes of tax risks of small and medium-sized enterprises, and expounds the corresponding countermeasures, so that small and medium-sized enterprises can effectively reduce and control tax risks and their impacts.

Keywords: small and medium-sized enterprises; Tax risk; control

1 Introduction

Small and medium-sized enterprises not only promote the growth of economy, tax revenue and employment rate, but also make irreplaceable contributions and backbone for social harmony, stability and construction and development. On the one hand, as small and medium-sized enterprises, their development trend and living conditions are facing various challenges, and the excessive tax burden still leads to the gradual increase of tax risks. Excessive tax burden is manifested in: nominal tax burden is heavy, actual tax burden is heavier than nominal tax burden, and excessive tax burden greatly affects the survival and development of small and medium-sized enterprises. On the other hand, the failure of small and medium-sized enterprises to comply with the national tax laws will lead to tax risks, and will also have a serious impact on the interests and social image of small and medium-sized enterprises. Therefore, the managers of small and medium-sized enterprises in China should strengthen the awareness and measures of tax risk management to truly prevent and resolve the tax risks of small and medium-sized enterprises.

2 SME tax risk overview

2. 1 The concept of tax risk of SMEs

The tax risks of enterprises mainly include two aspects: on the one hand, the tax payment behavior of enterprises does not conform to the provisions of tax laws and regulations, and they should pay taxes without paying taxes or paying less taxes, thus facing risks such as overdue taxes, fines, late fees, fines and reputation damage; On the other hand, the application of tax law in business activities of enterprises is inaccurate, relevant preferential policies are not fully utilized, taxes are overpaid, and unnecessary tax burdens are borne.

2.2 SME tax risk characteristics

(1) generality of tax risk. The tax risk of small and medium-sized enterprises is average. Based on the general contradiction between the mandatory tax system and the pursuit of profit maximization by enterprises, the information between enterprises and relevant tax departments is not equal. Due to the scale of small and medium-sized enterprises, the lack of financial department or the lack of professional management ability of financial department, tax risks are widespread to some extent. Therefore, the tax risk of small and medium-sized enterprises is universal and difficult to avoid completely. (2) It can restrain tax risks. Small and medium-sized enterprises can not completely avoid tax risks, but as managers and financial managers of small and medium-sized enterprises, they can minimize tax risks, mainly through scientific, standardized, compulsory and legal preventive measures to effectively prevent and control them, minimize tax risks and further resolve the impact of tax risks; In the process of risk management, tax administrators should establish the enterprise tax risk management objectives and system, evaluate risks, control risks, and strengthen tax management control. (3) Potential tax risks. As a potential form, the tax risk of small and medium-sized enterprises exists, and the harm caused by this risk will further deepen with the passage of time; The impact of risk is divided into stages and cumulative degree. In the initial stage, the risk harm is small, but with the passage of time, the potential risks will continue to accumulate, eventually causing explosive harm, making small and medium-sized enterprises face systemic risks.

3 Analysis of the causes of tax risks of SMEs

3. 1 Analysis of internal causes of tax risks of SMEs

The internal causes of tax risk of small and medium-sized enterprises mainly include: the awareness of tax risk prevention of enterprises and the lack and imperfection of internal management mechanism of small and medium-sized enterprises. The lack of tax risk awareness includes: internal management, investment, capital operation, financial management, organizational structure model, internal audit control, business sales and so on. (1) Lack of tax risk awareness in enterprise internal management. Small and medium-sized enterprises are mostly family-owned enterprises, and then the problems and contradictions arising from their management consciousness and mode and fund preparation will have potential or current adverse effects on the management of small and medium-sized enterprises. When faced with crisis and adverse effects, the internal management departments and managers of enterprises lack risk awareness and attach importance to the corresponding tax management. On the other hand, managers and management departments only focus on the expansion of layout scale and the maximization of profits, thus leaving tax risks behind, which makes all aspects of production and sales of enterprises bury the seeds of risks. (2) There is a gap between the financial accounting level of SMEs and the accuracy of data information. There is an obvious gap between small and medium-sized enterprises and large enterprises in the accuracy of financial accounting, and mistakes in financial accounting are likely to lead to tax-related mistakes in small and medium-sized enterprises. Therefore, the financial accounting ability and accuracy of small and medium-sized enterprises are related to the formation of corporate tax risks. Whether based on man-made or non-man-made operation, tax treatment of inaccurate and untrue financial data and information will lead to a sharp increase in corporate tax risks.

3.2 Analysis of the external causes of tax risks of SMEs

In order to support the healthy development of small and medium-sized enterprises, China has introduced many preferential tax policies for small and medium-sized enterprises, which need to be applied and approved by small and medium-sized enterprises to enjoy. However, the current situation is that a large number of tax authorities issue new regulations every year, and many small and medium-sized enterprises fail to understand and learn the new regulations in time and continue to pay taxes according to the old regulations. Therefore, under-reporting, under-submitting or late submission of evening papers will lead to tax risks.

4 SME tax risk prevention measures

First, establish and improve the tax risk early warning mechanism. Reasonably formulate a tax risk prevention and analysis system, and formulate reasonable tax risk early warning indicators. So as to realize timely early warning and avoid or reduce tax risks and losses to the maximum extent. Secondly, optimize the tax management mechanism. Thoroughly improve the tax prevention ability of small and medium-sized enterprises, improve the formulation of financial management system and clarify the responsibility system; The establishment of full-time tax management posts or departments, although small and medium-sized enterprises, but the role is huge. Establish and implement various tax risk management systems for small and medium-sized enterprises through the cooperation and supervision of various tax management positions. Finally, establish a tax risk identification and evaluation system for SMEs. Establish internal and external tax risk identification, reduce tax risk probability and control risk level; Form an effective tax risk identification mechanism, list and analyze the potential tax risks in each link; For small and medium-sized enterprises, tax risk assessment is a process of quantifying the probability and degree of tax risk, and adopting corresponding methods to ensure the objectivity and accuracy of tax risk assessment and provide a basis for tax risk solutions.

5 conclusion

Small and medium-sized enterprises should correctly understand and improve relevant systems and mechanisms, and objectively understand the harm caused by tax risks. Strengthening the awareness of tax risk prevention, building a prevention and early warning mechanism and strengthening the construction of tax administration departments are important guarantees for the long-term and stable development of small and medium-sized enterprises.

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