The Effect Of Tax Planning Is Restricted By Many Factors.

Tax planning is a basic right of taxpayers. Its successful implementation is restricted by various factors, including external factors such as economic development level, legal environment, tax system, tax collection and management, and other internal factors such as knowledge, time and cost of planners.

The following is a failed project investment plan to illustrate the impact of internal constraints on tax planning.

C city is a mountain city. The railway station is built on the river. The terrain is low. The main passageway in and out of the city is built in the 50s of last century. The cable car at the railway station with a height of more than 30 meters and a length of about 200 meters is raised.

With the development of economy and the expansion of passenger flow, the cable car in front of the station has been overloaded for a long time.

In early 1991, a foreign-invested cable car pformation project was proposed.

According to the income tax law of foreign invested enterprises and foreign enterprises, the newly established non productive Sino foreign joint ventures from July 1, 1991 will no longer enjoy the preferential tax rate of "two exemption, three reduction and half".

In order to enjoy preferential income tax, the foreign businessman accelerated the pace of investment, decided to set up a new joint venture to carry out the project, demolished the original cable car, and built three closed escalators in situ. In June 30, 1991, he got his business license.

In 1996, the front escalator was put into operation.

However, the appearance of the railway station area has changed enormously. The newly built modern public pport square and many fast passages have made the railway station area a pportation hub extending in all directions. The escalator is no longer the main access to the urban area.

Therefore, since the opening of the escalator, the passenger flow has been very small, only 1 / 6 of the designed traffic volume and 1 / 4 of the predicted traffic volume. The economic benefit is not satisfactory. The joint venture has always been in a state of loss.

From the surface analysis, the failure of the project is caused by external factors, that is, a significant change in the surrounding environment, resulting in reduced passenger flow and less than expected revenue.

However, from the perspective of tax planning, the failure of the project reveals the internal constraints of knowledge, time and cost, and the independence of planners on tax planning. It shows that successful tax planning must follow the general rules and necessary procedures of planning, combine with scientific decision-making, and make overall arrangements for taxpayers' investment, production and operation activities.

Knowledge factor, the basis of successful tax planning, is the basis for successful tax planning. Knowledge includes financial, tax and related legal knowledge. On the other hand, it includes information and expertise related to investment projects, production and business activities.

In this case, the investor has the professional knowledge of Finance and taxation. He is aware of the changes in the policy direction of attracting foreign investment in China. The purpose of accelerating the pace of investment is to catch the last bus that enjoys the preferential income tax for non productive Sino foreign joint ventures, so that enterprises can enjoy preferential income tax.

However, investors do not fully grasp the relevant information and expertise of investment projects.

In terms of cable car pformation project, the new escalator has a large investment and a long time. After its completion, its operation direction cannot be pferred, and its dependence on passenger flow is large. It has great risks.

The key to making decisions is to scientifically predict future passenger volume and pport capacity.

It is a fact that cable car capacity is insufficient, but the main way to alleviate the insufficient capacity of cable cars is not to build escalators, but to rebuild the railway stations that have been started or started planning and to build several fast passages.

Investors do not collect enough information in this area, do not make reasonable analysis and comprehensive utilization of their knowledge, separate the organic link between tax planning and production management decisions, and emphasize tax preferences unilaterally, resulting in the failure of projects.

Time and cost are the guarantee for the success of tax planning. It takes time and cost to design and implement tax planning.

First, time is the guarantee of knowledge and information.

Tax laws and financial systems are becoming more and more sophisticated and complex. In order to meet the needs of anti avoidance, many tax laws become more complicated.

In order to acquire the necessary knowledge, we need to spend time collecting data, studying and studying tax law and financial system, and fully understanding of investment and business projects.

Secondly, designing and implementing tax planning requires more time.

Taxpayers are faced with a trade-off between cost and revenue when they plan tax planning: relying on their own financial staff to plan for the project can save money, and there will be additional expenses for entrusting agencies to implement tax planning.

Therefore, taxpayers believe that only when the expected amount of tax is greater than the cost paid to intermediaries, it is advisable to choose intermediaries for tax planning.

When the tax saving income can not be determined, taxpayers tend to rely on their own financial personnel for tax planning.

But financial personnel often do not have comprehensive professional knowledge, and they can not guarantee that they can think about the relationship between future economic activities and tax revenue.

In this case, if the tax planning of intermediaries is invested, we should invest enough time and cost according to the irreversible characteristics of investment decisions, and put forward a variety of options for investors to make decisions.

It is a pity that investors are only caught up in the mindset based on their understanding and made hasty decisions.

Investors have saved the cost of paying intermediaries, but failed investments have wasted more resources.

Generally speaking, successful tax planning should include three essential stages: asking questions, drafting plans and implementing plans.

To ask questions is to clearly describe existing problems and hope to achieve them.

By talking with customers, professionals can find problems clearly and make taxpayers aware that if they do not take corresponding measures, they may face tax problems.

The draft plan is the core of tax planning.

There may be some differences in understanding the tax law, but the plan should have a clear legal basis and do not violate the provisions of the tax law.

Professionals in tax planning must recognize their shortcomings in experience, knowledge and time. When they are unable to come up with satisfactory solutions, they need to consult more experts.

It is a good plan to implement smoothly and ensure that the tax department accepts the plan.

This requires that tax planning be carried out beforehand rather than after tax inspection.

In this case, if investors are not subject to the July 1st deadline, follow the objective rules of tax planning, proceed according to the procedures, ensure sufficient investment in time and cost, it is not difficult to find a better investment plan.

The independence of planners is the necessary condition for the success of tax planning. Tax planning is the only way to choose intermediaries better than internal financial personnel. This is not only because of the knowledge and time advantages of intermediaries, but also because of the independence of intermediaries, which is a necessary condition for the success of tax planning.

Independence enables intermediaries to stand in a neutral position in the face of tax bureaus and clients, and seek legal tax plans based on facts and laws.

Good interpersonal relationship is indispensable for successful tax planning, but it does not mean that intermediary organizations should maintain close interest or friendship with tax departments or customers, or even become private friends.

The relationship between tax agents and customers is too close. The problem of customers may become a tax agency problem.

When answering tax personnel inquiries, tax agents may choose and retain some of the truth, which often results in tax evasion.

The relationship between tax agents and tax authorities is too close.

In this case, the implementation of tax planning by investors and internal financial staff is closely related to whether the financial staff's own interests are closely related to whether a joint venture can be established and whether the project is launched or not.