Risk And Prevention Of Tax Planning For Small And Medium Enterprises &Nbsp (1)

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 pnational 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.

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. Taxation

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, tax planning

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.