The Tax Planning Of SH Meat Processing Group

With the rapid development of market economy, the competition among enterprisesbecomes more fiercely. As the imposition of the tax has a great impact on the futureoperation and development of enterprises as well as corporate net profit, so more andmore companies are beginning to realize the importance of using of tax planning meansto increase the tax benefits. Compared to a single enterprise, as a large amount ofeconomic conglomerates, with diversification, multi-organization, multinationalcompetition and other characteristics, the tax planning needs of enterprise group areparticularly urgent. This article set off from SH global development group, to reduce theGroup’s overall tax burden, increasing the Group’s after-tax profit, and made a number ofplanning activities. By investing in production and business activities as well as funding,prior planning and other tax-related business, under the conditions laid down inaccordance with the tax laws, enable the group to maximize the tax benefits.This article select SH Group as subject. Based on the development and futureplanning of the SH group, this research proposes some targeted tax planning means thatare applicable for the operation and ownership restructuring period of SH Group. thenanalyzes the effect through specific planning scenarios. This paper analyzes the basicdevelopment of SH Group and its financial position over the past five years as well assome tax-related information. On the base of the basic information presented before, SHGroup propose some feasible tax planning schemes, and through analysing andcomparing these choices to select the best choice.These tax planning including the chosen of the multinational operations in thebusiness of holding relationship, short-term payback mode selection and sales confirmmode selection, choice of fixed asset depreciation, leasing tax planning choice. Andequity restructuring phase financing options when selecting a business combination, andthe choice of tax treatment of business combinations of tax planning.Then this paperanalyzes the SH groups in the risks that may occur in the course of tax planning and thecorresponding countermeasures. SH Group tax planning implementation risks: first, rapidchanges in the external environment leading to failure of tax planning, and second,ignoring risks in pursuit of short-term tax effects, and long-term gains; three are caused by the subjectivity of enterprise financial decision makers to predict deviations. For theabove risk planning programme implementation, SH group have control may take thefollowing measures: real-time management and is a comprehensive collection ofinformation, and second, improving risk and benefit assessments of tax planningmechanism, three is to raise the level of internal financial officers or professional bodies.Through this research can improve the management level of SH, reducing its taxburden and tax-related risks, and to promote reasonable allocation of group resources,and access to the time value of money.