PROBLEMS OF TAX RISKS ASSESSMENT OF BUSINESS ENTITIES

Abstract

Introduction. To date, the literature describes many different methods that can be used in the assessment of tax risks. Most of them are adopted from the financial risk assessment methodology and, in our opinion, do not fully satisfy the practical needs of tax risk assessment. Another layer of proposed methods are methods of determining the tax effect of implementing certain optimization measures. They are also not quite suitable for assessing the potential consequences of realizing tax risks. Therefore, it is necessary to deal with the problems of specific proposed methods and to determine how a business entity can still satisfy its need for tax risk assessment. Purpose. The purpose of the article is to investigate what methods of tax risk assessment are offered in the modern scientific environment, as well as to critically analyze whether they can really meet the needs of business entities in the process of managing their tax risks. Methods. As research methods to achieve the set goal, general scientific methods of cognition were used, including: system analysis, comparison and abstraction - when studying the methods of tax risk assessment proposed by scientists and determining the problems of their practical application; synthesis and logical generalization – when forming own proposals for a practical approach to assessing tax risks. Results. The task of tax risks assessing is to determine potential financial losses that may arise as a result of tax offenses or incorrect application of tax legislation. When assessing risks, it is necessary to analyze two components: the amount of possible losses and the probability of their occurrence. These two values together reflect the amount of tax risk. The amount of possible losses is an individual value for each business entity. It represents possible financial losses, which consist of the sums of additional taxes, fines, penalties and costs for pre-trial and judicial resolution of a tax dispute. It must be determined by individual calculation. For this, as a rule, a tax audit of the business entity is conducted. The probability of risk occurrence can be determined by an objective (quantitative) or subjective (qualitative) method. Practical use of the quantitative method is impossible today due to the lack of acceptable statistical information. Therefore, the subjective method, which is based on the assumptions of experts knowledgeable in a specific category of risks, is still a priority. Particular attention should be paid to determining the acceptable level of tax risk of a business entity. Conclusion. By constructing a risk assessment matrix, which combines indicators of the size of tax losses and the probability of their realization, it is possible to assess the overall level of risks, obtain a comprehensive understanding of their potential impact on the business entity's activities, and, accordingly, decide on the implementation of risk minimization measures.