Risks And Precautions In Enterprise Tax Planning

Tax planning, also known as tax planning and tax planning, is essentially an economic action to protect taxpayers' rights and interests in the scope of laws and regulations, and to advance the planning and arrangement of operation, investment and financial activities, so as to minimize tax costs and maximize profits. Because tax planning is often carried out at the margin of the stipulation of tax law, its risk is always there. The risk of tax planning refers to the cost of tax planning activities due to various reasons. Because tax planning is often operated at the margin of the stipulation of tax law, the fundamental purpose of tax planning is to maximize the interests of taxpayers after tax, which is bound to involve greater risks. At present, with the widespread application of tax planning in multinational corporations and large domestic enterprises, more and more SMEs have attached importance to it. However, because of the huge differences in scale, capital and personnel quality, and the huge differences between the channels of gold mining and transnational corporations and large enterprises, the methods and risks of tax planning are different. Therefore, SMEs must set up risk awareness in tax planning, seriously analyze various factors that may lead to risks, and take effective measures to prevent and reduce risks and avoid falling into the trap of tax evasion, so as to achieve the purpose of tax planning.

Risk of tax planning for small and medium sized enterprises

At present, the risk of tax planning for small and medium-sized enterprises has four main factors.

1, the risk of instability in tax planning

Small and medium-sized enterprises need good basic conditions for tax planning. The basis of tax planning is the basic conditions for the management decision making and related personnel to understand the tax planning, the accounting and financial management level of enterprises, and the integrity of enterprises. If the SME management decision makers do not understand, pay no attention to tax planning, or even think that tax planning is to engage in relations, find ways, empty loopholes, pay less taxes, or incomplete accounting, incomplete accounting information, serious distortion of accounting information, or even a criminal record of tax evasion, or violation of tax law records, and so on, resulting in a very unstable tax planning basis, so tax planning on such a basis is extremely risky. This is the most important risk of tax planning for small and medium-sized enterprises.

2, the risks caused by changes in tax policies.

The change of tax policy refers to the uncertainty of the statute of state tax law. With the development and change of market economy and the adjustment of national industrial policies and economic structure, tax policies should be changed correspondingly to suit the development of national economy. Therefore, the state tax policy has an aperiodic or relatively short timeliness. Tax planning is planned ahead of time. Every tax planning requires a process from the initial project selection to the final success. During this period, if the tax policy changes, it is possible to make the tax planning scheme designed according to the original tax policy become an unlawful plan, or from a reasonable plan to an unreasonable plan, resulting in the risk of tax planning.

3, the risk caused by irregular tax administration law enforcement.

The essential difference between tax planning and tax avoidance is that it is legal and accords with the intention of legislators. But in reality, this legitimacy still needs confirmation by tax administrative law enforcement departments. In the confirmation process, there is objectively the risk of failure in tax planning due to the irregular regulation of tax administration. The tax law is all in the scope of tax payment, leaving a certain flexibility space. As long as the tax law is not clear, the tax authority has the right to determine whether it is a taxable act according to its own judgment, plus the uneven quality of the tax administrative law enforcement personnel and other factors. The possibility of the deviation of the tax policy implementation is objective. The result is that the enterprise's lawful tax planning behavior may result in the tax planning scheme being a mere scrap of paper due to the deviation of the tax administrative enforcement, or it is considered to be a malicious tax avoidance or tax evasion act. Because no matter what kind of tax.

4, the risk of tax planning is not clear.

Tax planning activities are an integral part of the financial management activities of enterprises. The maximization of post tax profits is only the phased goal of tax planning, and the ultimate goal is to maximize the taxpayer's enterprise value. Therefore, tax planning should serve the goal of enterprise financial management and serve the realization of the strategic management objectives of enterprises. If the enterprise tax planning method is not in line with the objective requirements of production and operation, the excessive tax burden effect will disrupt the normal operation and financing order of enterprises, which will lead to the disorder of the internal management mechanism of enterprises, which will eventually lead to a greater potential loss risk of enterprises. The cost of tax planning includes explicit cost and implicit cost. Explicit cost refers to all the actual cost incurred in carrying out the tax planning, which has been taken into account in the tax planning plan. Implicit cost is the opportunity cost, which refers to the interest which the taxpayer abandonment because of the proposed tax planning scheme. For example, because the enterprise uses the scheme of obtaining tax benefits, the amount of capital is increased. The increase in the amount of capital is essentially the loss of investment opportunities, which is the opportunity cost. In the practice of tax planning, enterprises often neglect such opportunity cost, resulting in the risk that planning results and planning costs outweigh the gains.

Tax planning is to serve the maximization of enterprise value. It is a way and means, rather than the ultimate goal of an enterprise. On this point, it is not clear, and it is likely to make a wrong decision. If some enterprises are extravagant and wasteful in order to reduce income tax and increase unnecessary expenses, in order to postpone the profit year in order to adjust the "two exemption and three reduction" tax exemption period and neglect production and operation and cause continuous losses, such a practice of putting the cart before the horse is harmful to enterprises, which will inevitably lead to the loss of the overall interests of enterprises, thus making the overall tax planning fail.

Risk prevention of tax planning for small and medium sized enterprises

As mentioned above, the risk of tax planning is objective, but it can also be prevented and controlled. As far as tax planning for small and medium-sized enterprises is concerned, risk prevention should start with the following aspects:

1, correctly understand tax planning and standardize the basic accounting work. The decision-making level of SMEs must establish the concept of paying taxes according to law, which is the prerequisite for successful tax planning. Tax planning can improve business performance to a certain extent, but it is only a link to improve the financial management level of enterprises. It is not possible to raise the profit of enterprises too much in tax planning, because the improvement of business performance is influenced by many factors such as market changes, commodity prices, commodity quality and management level. The establishment of a complete and standardized financial accounting book, vouchers, statements and proper accounting treatment is the basic premise for tax planning. Is tax planning legal? First, we must pass the tax inspection, and the basis of inspection is the accounting voucher and records of the enterprise. Therefore, small and medium-sized enterprises should acquire and maintain the accounting vouchers and records of enterprises and standardize the basic accounting work in accordance with the law, so as to provide reliable basis for improving the effect of tax planning.

2, firmly establish risk awareness and pay close attention to the changing trend of tax policy. Because of the complexity and complexity of the business environment and the occurrence of uncertain events, the risk of tax planning is always at risk. Therefore, when implementing tax planning, small and medium-sized enterprises should fully consider the risks of planning and make decisions. Tax laws are constantly revised and perfected with the changing economic situation or in keeping with the needs of policies. The number of amendments is more frequent than other legal norms. When carrying out tax planning, small and medium-sized enterprises should make full use of modern advanced computer networks and newspapers and other media to establish a suitable set.

The tax planning information system with its own characteristics, such as free subscription of tax public service information such as the national revenue administration bulletin, tax law express, local tax communication and so on, collects and collects tax policies and changes related to business operation, timely grasps the impact of tax policy changes on enterprise tax related incidents, accurately grasps the legislative purpose, and timely adjusts tax planning scheme, so as to ensure the implementation of tax planning activities within the scope of tax law.

3, create a good relationship between tax and enterprise. Under the condition of modern market economy, taxation has the functions of fiscal revenue and economic control. In order to encourage taxpayers to act according to their own intentions, the government has implemented the tax differential policy as an important means to readjust the industrial structure, expand employment opportunities and stimulate the growth of national economy. Tax policies with different types and considerable flexibility are formulated, and tax enforcement agencies have greater discretion because of different tax collection methods. Therefore, SMEs should strengthen their understanding of the working procedures of tax authorities, strengthen contacts and communication, strive for consistency with the tax authorities in the understanding of tax laws, especially in dealing with certain vague and new things, and be recognized by tax authorities and tax collectors.

Only when the enterprise's tax planning scheme is approved by the local competent tax authorities can avoid invalid planning, which is the key to the smooth implementation of the tax planning scheme. Small and medium-sized enterprises should prevent the misunderstanding of "coordination and communication", that is, "coordination" is to engage in personal relations with the tax authorities, and do not hesitate to bribe them, so that a small number of incompetent tax officials will "keep a blind eye" in dealing with tax issues, so as to achieve the purpose of not paying taxes or paying less taxes, not punishments or punishments. At present, with the continuous strengthening of tax authorities' inspection efforts and the increase of national anti-corruption efforts and economic cases, this practice will not only help enterprises to pay less taxes, but will increase the tax risk of enterprises.

4, implement the principle of cost and benefit to maximize the overall efficiency of enterprises. Small and medium-sized enterprises choose tax planning plan. We must follow the principle of cost and benefit to ensure the realization of the goal of tax planning. In the implementation of any planning scheme, taxpayers will pay tax planning costs for the implementation of the scheme at the same time of obtaining part of the tax benefits. Only when we fully consider the hidden cost of the plan, and when the cost of tax planning is less than the proceeds, the tax planning plan is reasonable and acceptable. Tax planning should not only focus on the tax burden of individual taxes, but also focus on the overall tax burden. A successful tax planning scheme must be the result of the optimal selection of various tax schemes. The criterion of optimal selection is not the smallest tax burden, but rather the overall interests of enterprises when the tax burden is relatively small. In addition, when choosing tax planning plan, we should not only focus on the least paid tax plan in a certain period, but should consider following the long-term development strategy of enterprises and choose the tax planning scheme that can maximize the overall benefit of enterprises.

5, with the help of "external brain", we can improve the success rate of tax planning. Tax planning is a high-level financial activity and systematic project. It requires the planners not only to be proficient in tax law and accounting, but also to know professional knowledge such as investment, finance, trade, logistics and so on. Due to professional and experience constraints, SMEs may not be able to complete independently. Therefore, for those projects which are not competent for themselves, tax planning experts should be hired to improve the standardization and rationality of tax planning, and to make and implement tax planning schemes, thereby further reducing the risk of tax planning.