Research on the theory of internal control in tax risk management on the basis of approach to background theoretical framework

Abstract

Enhancing business performance, increasing profits and creating financial stability are considered quite basic goals that every enterprise would like to achieve. To obtain these things, the business activities of organizations must be guaranteed, strictly controlled and fulfill obligations to the state. It should be affirmed that strict tax risk management will assist companies maintain the reputation and trust of customers, business partners as well as tax authorities. This could create a competitive advantage and help attract new partners and customers. In research articles, the topic of internal control associated with tax management is still quite limited. By synthesizing publications, the main goal of this article is to provide a theoretical framework issued by COSO on internal control in relation to tax aspects and the relationship with two main background theories that used for those publications.