Types of financial risks of enterprises

As far as I am concerned, the tax risks of enterprises vary according to the situation of enterprises. It is determined by the objective factors around the enterprise and the subjective factors within the enterprise, which can be roughly divided into the following five categories:

1. Transaction risk refers to the uncertain factors that may affect the accuracy of tax payment and lead to the loss of future transaction income due to various commercial transaction behaviors and transaction methods of enterprises.

For example, there is no participation of the enterprise tax department in the important transaction process, and the enterprise tax department will conduct tax accounting after the transaction is completed. Enterprises lack proper procedures to evaluate and monitor the tax impact in the transaction process. In addition to continuing to check the financial books provided by enterprises, tax authorities are paying more and more attention to recording the information of enterprise transaction process. The occurrence of trading risk may have the following effects:

For example, in the process of foreign mergers and acquisitions, due to the failure to fully investigate the tax payment of the acquired object, it was found that the acquired enterprise had a large number of tax evasion behaviors in previous years after the completion of the M&A activities, and the enterprise had to bear the additional taxes and fines of the acquired enterprise. In the process of purchasing raw materials, enterprises failed to effectively control the taxpayer qualification of suppliers, resulting in a large number of false VAT invoices from suppliers, and enterprises had to bear the non-deductible input tax and rising raw material costs. In the process of restructuring the sales model, enterprises failed to effectively assess the tax impact, resulting in a substantial increase in the tax burden of value-added tax and a decline in the gross profit margin of sales. Enterprises failed to obtain special VAT invoices when purchasing gasoline and office supplies, resulting in less input tax deduction. For enterprises, the less frequent transactions, the greater the tax risks, such as mergers, asset restructuring and other matters; The tax risks of daily transactions such as raw material procurement, commodity sales and financing will be relatively small.

2. Compliance risk Compliance risk refers to the uncertain factors that lead to the loss of future benefits due to the failure to effectively use tax policies in the business activities of enterprises. For example, enterprises failed to update the latest applicable tax policy system in time. The enterprise fails to judge the tax policy applicable to the new changes that have taken place within it. Enterprises lack the guidance and review system of external institutions for their own tax obligations. The occurrence of compliance risk may have the following effects. For example, after several years of production and operation, an enterprise finds that it should enjoy preferential treatment at a low tax rate but does not enjoy it, resulting in paying enterprise income tax at a high tax rate for many years. Enterprises provide services that should pay business tax, but mistakenly pay value-added tax, which leads to the need to pay business tax and fines, and coordinate with tax authorities to solve the problem of overpayment of value-added tax. The enterprise paid the expert fee and failed to withhold personal income tax, resulting in a fine. Compliance risk is the biggest tax risk in all enterprises.