Main Factors Affecting The Effectiveness Of Enterprise Tax Planning

Information is not only a catalyst for thinking activities in tax planning, but also a link between planners and external environment.

Only by fully grasping the information can we further carry out tax planning activities.

Because tax planning can not violate tax laws and regulations, tax planners should seriously grasp and study tax laws and regulations, and find out where they can be used for tax planning and utilization.

Tax laws and regulations often change with the change of economic conditions or to meet the needs of policies. The number of amendments is also more frequent than other laws. Therefore, when tax planning is carried out for enterprises in the content and trend of tax law revision, we must pay attention to and adjust the planning plan at the right time.

Although tax planning and tax evasion have different meanings in theory, in practice, it is generally necessary to identify and judge the tax authorities according to the identification and judgement of the tax authorities, and vary according to the subjective and objective conditions. Therefore, when applying tax planning, enterprises must also understand the views of the competent tax authorities and make plans on the basis of repeated discussions, otherwise, once they are regarded as evading taxes, they will lose more.

The enterprise's own situation is the starting point of tax planning. Therefore, tax planning should not only grasp the internal information of enterprises, such as financial goals, business conditions, financial status, attitude towards risks, etc., but also understand the past and present situation of enterprises, including the relevant reports, taxes and the relationship with tax authorities, which will help to formulate reasonable and effective enterprise tax planning plan.

Design and Implementation

It will take the necessary time and cost.

First, time is the guarantee of knowledge and information.

As the tax law and financial system are becoming more and more sophisticated and complex, in order to acquire the necessary knowledge, it takes time to collect information, learn and study tax law and financial system, and fully understand investment and business projects.

Secondly, design and implement the guarantee of time and cost for tax planning.

Taxpayers often face tax planning.

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The trade-off: relying on their own financial staff to plan can save money, commissioned by intermediary agencies to implement tax planning will happen additional expenses.

Therefore, 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 is uncertain, if we rely on our own financial personnel to make tax planning, we must invest enough time to ensure that the internal financial staff can think about future economic activities and tax links, so as to make a variety of planning options for decision makers.

Tax planning is a professional and policy oriented work. Whether the plan can be implemented effectively or not depends on the comprehensive quality of the staff.

If an enterprise has the ability, it can plan itself. If an enterprise has no capability, it can employ an intermediary agency.

Generally speaking, choosing intermediaries is better than relying on internal financial personnel, because intermediaries have the advantage of knowledge and time. Their independent performance enables intermediaries to stand in a neutral position in the face of tax authorities and customers, and seek legal tax plans based on facts and laws.

Good interpersonal relationships are indispensable for successful tax planning, but too close relationships often bring harm to planning.

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.