Author(s)

QingYan Guo^*, JinXing Dai, Wen He

Affiliation(s)

School of Economics, Wuhan Donghu College, Wuhan 430212, Hubei, China.

Corresponding Author

QingYan Guo

ABSTRACT

As a vital component of corporate financial management, tax planning plays a pivotal role in reducing corporate tax burdens and optimizing resource allocation. This study systematically examines the compliance boundaries and risk prevention challenges in corporate tax planning. It constructs a theoretical framework for compliance boundaries from two dimensions—formal legality and substantive legality—proposing four defining criteria: transaction purpose, economic substance, rights and obligations, and procedural compliance. The research analyzes major risk types including policy risks, operational risks, recognition risks, and reputational risks, while conducting comparative studies on risk characteristics across industries such as manufacturing, real estate, and e-commerce. Findings indicate that the real estate sector faces the highest policy risks, whereas the e-commerce industry exhibits the most prominent operational and reputational risks. The study proposes a risk prevention system through five key approaches: establishing compliance review mechanisms, improving internal control systems, optimizing risk monitoring and early warning, enhancing professional capacity building, and prioritizing commercial substance management.

KEYWORDS

Tax planning; Compliance boundary; Risk prevention; Internal control; Substance over form

CITE THIS PAPER

QingYan Guo, JinXing Dai, Wen He. Compliance boundary and risk prevention of enterprise tax planning. World Journal of Management Science. 2026, 4(1): 5-9. DOI: https://doi.org/10.61784/wms3094.

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