| Since our country proposed “the Belt and Road” initiative,the degree of openness has entered a new era.The value of trade increased from 24.42 trillion in 2012 to 32.16 trillion in 2020,and the growth rate is as high as 31.7%.The reason why we have get these achievements are that both "the Belt and Road" initiative and country’s support.In order to help local companies,our country actively signs international agreements of taxation and provides many services.To catch the opportunity,numbers of firms choose to "going out".The value of trade with countries along the route has increased to 9.37 trillion.However,according to the "Chinese Enterprises " Going out " Survey Report",it shows that various companies of them always encounter many risks in terms of taxation when they are in an unfamiliar business environment.Based on the investigation of various stages of the company,the main tax risks include three aspects: firstly,in the initial stage,enterprises are prone to violations in tax procedures;secondly,during the operation,external factors such as economic fluctuations and political instability will bring tax risks.Internal factors such as company’s related transaction behavior and accounting methods will affect its tax costs;finally,while the firms choose to go away,both the methods and the procedures may increase tax payable,even suffered tax penalties.As a result,companies may encounter tax risks in all life.Can we help companies solve troubles?In order to help companies discover and resolve tax risks timely,this article takes company Z as an example.Through the company’s operating conditions,combined with financial data,we analyzed its potential tax risks in all life,and discussed whether various risks can be controlled,finally we put forward several suggestions for the company.Through the analysis of company Z,we find that the company’s tax risks and reasons are as follows:(1)Before investment,employees didn’t participate in investigations,which not only increased the work,but also increased the tax burden;(2)During the operation,it is because the related transactions’ large scale and rapid growth that they suffered tax inspections for many times;(3)The accounting treatments of certain commodities are unreasonable,which increases the tax opportunity cost;(4)They didn’t announce the detail information,which is likely to cause tax disputes;(5)It is because their module is imperfect,that they must undertake more risks.Policy recommendations are:(1)Establish tax department to enhance the degree of tax specialization.Then,the company should arrange tax officers by country;(2)Establish tax early warning system to control the growth of connected transactions.Officials should analyze and report to their superiors timely;(3)Improve accounting policies and establish incentive mechanisms.The company must improve policies,as well as increase incentives;(4)Publishing more transaction information,reduce the level of controllable risks.The company should increase the disclosure of transaction details;(5)Choose right ways to exit the market.If choose to transfer equity,the firm should pay attention to equity price;and if choose to cancel the company,the firm should pay attention to the preservation of data. |
