What is tax risk?
Tax risk refers to the potential economic loss that may arise when a taxpayer fails to comply with tax regulations. To put it simply, tax risk is a constant problem for taxpayers because it is a risk that is inherent to the ordinary operations and management of a business.
What are the harms related to tax risk?
1. Fines and penalties
Fines and penalties are a direct consequence tax risk. For example, if a multinational company is found to have failed to pay withholding tax to the Chinese taxation authority in a timely manner, it may incur penalties of up to 25.96 million yuan in back taxes, and also fines of up to 23.74 million yuan for the late payment of tax
2. Personal and criminal liability
If a company officer attempts to contravene tax regulations and company policies in order to significantly reduce a company’s tax liability, and this results in a tax risk that cannot be immediately controlled, the officer’s employment will be terminated. In more serious circumstances, such a breach may also warrant jail time.
3. Damaging the reputation of the company
A company’s reputation is an integral component of its intangible brand value. If tax risk is not prevented or controlled efficiently, it may lead to a tax crisis. In the wake of a tax crisis, the share prices of listed companies would most likely drop sharply or may even be suspended indefinitely. In recent years, many domestic and foreign companies have failed to be wary of tax risk and have irreparably damaged their reputation after attracting negative media attention and public scrutiny.
Despite these consequences, tax risk can be effectively controlled and managed with appropriate tax strategies. If you are facing tax problems or are exposed to a high degree of tax risk, please feel free to consult the Azure Group China team for tax advice.
什么是税务风险?
税务风险是指纳税人的涉税行为因未能正确有效地遵守税法规定，而导致未来利益的可能损失。简单来说，税务风险是纳税人在生产经营中因为税务问题而遇到的“麻烦”。有人用“甩不掉的影子”“定时炸弹”“雪崩”等来形容税务风险的难以防范和巨大危害。对于纳税人而言，只要持续经营，就一定会“麻烦”不断。不过，只要掌握了科学的防控方法，税务风险是完全可以控制和管理的。
税务风险有哪些危害？
经济损失。税务风险带给企业最直接的危害，就是经济损失。如某跨国企业由于不注重对税务风险的防范，未及时向中国税务机关缴纳预提所得税，税务机关查实后，该企业补缴税款2596万元，滞纳金2374万元。
牢狱之灾。如果企业财务人员或负责人追求利益最大化，违反国家税法、财经纪律或者企业相关制度少缴或者不缴税款，由此产生的税务风险没有及时得到防控，那么企业财务人员和负责人将可能面临开除的职业风险，情节严重的甚至可能面临牢狱之灾。
声誉损害。商业声誉是企业品牌价值的重要组成部分。如果税务风险没有得到及时防控，发酵为税务危机，那么企业的声誉也将会受到很大程度的损害，一些上市公司很有可能因此股票大跌甚至停牌。近年来，许多国内外知名企业因不重视税务风险，在其税务问题被媒体曝光后，企业声誉都曾在一定程度上受到损害。
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