The constant concern of medium and large enterprises

The constant concern of medium and large enterprises

The COVID-19 storm has been and is projected to considerably affect the global economy in general and the domestic economy in particular. While businesses have yet to recover from the crisis and the new COVID-19 variants have sparked serious concerns, another existential concern that is vexing for businesses is the tax inspection in the time to come.

Tax inspection and examination amid the pandemic – The double burden for businesses

Just when businesses started to resume their operations, they had to face the burden of being fined for late tax payments. In the context of the unpredictable COVID-19 pandemic with the constant appearance of new variants, it is difficult for businesses to calculate the profit of the whole year and the tax amount to be paid. This leads to the constant concern of being fined for late tax payments if the regulations are not amended.

Many businesses still have to face the burden of being inspected and examined many times, especially in the context of the Covid-19 pandemic. Businesses are like “fish on the chopping board” as they still had to pay wages for the employees in the time of quarantine, pay the costs to maintain business operations and at the same time fulfill tax declaration and payment obligations. It’s worth noting that the “COVID-19 storm” has severely damaged the “health” of businesses. This negatively affects the cash flow for tax payments of businesses. If businesses have to use their capital for tax payment to prevent from being fined, it means appropriation. If not, they have to take the risk of being fined.

Besides, to cooperate effectively with tax authorities in the tax inspection and examination process, businesses need to have both extensive knowledge and practical experience, which is quite a demanding requirement for business owners and chief accountants. Moreover, various important factors can unpredictably affect the tax inspection and examination result

How to get rid of the burden of tax inspection and examination for medium and large enterprises?

Getting rid of the burden of tax inspection and tax examination does not simply lie in the fact that businesses know or understand the tax law. As the law is constantly changing, various regulations are not clear and can be interpreted in many different ways, knowing the law is hard, understanding and using it properly is even harder.

According to Mr. Nguyen Thanh Lam – Deputy General Director of RSM Viet Nam Auditing and Consulting Company, tax inspection and examination are indispensable activities in the operation process of enterprises for mutual understanding between the tax authorities and businesses. Through tax inspection and examination, businesses will have an objective and detailed view of their tax compliance situation and understand the view of the local tax department.

So how to get rid of the burden is the question of many medium and large businesses as it is acknowledged that a thorough understanding of the tax law is not enough for businesses to anticipate the possible outcomes. The answer to this question is that businesses need to be aware of the risks in tax inspection and examination so that they can take preventive measures and prepare carefully. As the saying goes “tax refund is a pain and tax inspection is a fear", the prevention from risks of non-compliance will help businesses to get rid of that pain and fear.

To support medium and large enterprises in the upcoming tax inspection and examination, RSM Vietnam Auditing and Consulting Company collaborates with the General Department of Taxation to organize a webinar with the topic: “Prevention & warning of risks in tax inspection and examination 2021”. In this webinar, Mr. Nguyen Van Phung - Director General, Department of Large Enterprises, General Department of Taxation will help businesses identify the common risks and how to manage risks in tax inspection and examination. Besides, businesses will have the opportunity to talk directly with the experts to get the answers to their questions and concerns.

To register for the webinar and receive the handbook, please scan the QR code or click on the link: https://www.rsmhanoi.com.vn/hoi-thao-thanh-tra-kiem-tra-thue-2021

VietNam Economic News