Tax risk: types, factors, consequences, analysis and optimization

In the course of conducting economic activity, entrepreneurs quite often face all sorts of risks, from which success in business often depends. Such a strategy may well be justified, as the conditions of tough competition require the timely introduction of new ideas and technologies. Deciding on such a step, the entrepreneur must adequately assess the degree of risk and be able to manage it.

Nature of occurrence of risk

Such a concept as tax risk can be viewed from two perspectives: an entrepreneur and a tax inspection. On the one hand, traders can get into a difficult situation caused by an increase in the tax rate or a reduction in certain benefits, and on the other hand, supervisory bodies risk not receiving the required amount in the budget due to tightening of the regime and a change in tax policy.

Many factors of tax risks businessmen have learned to determine in advance. In this regard, unforeseen situations arise in most cases due to uncertainty or insufficient knowledge of the law. The ability to correctly calculate the situation on many steps forward greatly mitigates the consequences, and allows you to protect yourself from troubles in advance.

The first step towards risk management

Quite often, Russian businessmen do not pay enough attention to the tax system, as a result, the planned tactics of doing business is unprofitable because of excessive tax deductions. It is especially offensive to find such a nuisance after the transaction, and the negative consequences can be reported by the tax authorities themselves.

Naturally, in such a situation, they begin to look for the one who is to blame for the situation, and to think how to correct the consequences of tax risks now. The answer in this situation is obvious. Instead of accusing an accountant, financial director or tax advisor of incorrect calculations, or hoping that the consequences would not be as significant, it would be best to learn how to manage risks. But for this it is necessary to correctly understand the nature of the emergence of a critical situation, as well as its scale.

How not to miss the moment of occurrence of tax risk

Oddly enough, the cause of the problem is not at the moment when the tax risk has led to the emergence of payment arrears, but much earlier, when the transaction was at the development stage. With the use of competent tax planning, negative consequences can be avoided in 90% of cases. The policy of aggressive business conduct, based on the elimination of competition by any means, is not compatible with rational reduction of the tax burden.

The modern business structure is structured in such a way that in the process of financial activity, some create risks, while others anticipate them. Companies that are just beginning to develop their business should most actively contact tax payer supervisors. In practice, such parties prefer to remain at different poles. For example, it is not uncommon for a situation when an accountant finds out about a completed transaction rather late, and it's impossible to change anything. In connection with this situation, many reputable companies create special structural subdivisions, which are obliged to calculate all the possibilities of occurrence of tax risk.

Types of tax risks and their causes

If we consider the negative consequences from the point of view of their occurrence, the risks can be divided into separate groups.

Russian legislation is often quite ambiguous, as some merchants use it. In pursuit of profit, business leaders try to persuade the essence of the disputed normative document in their favor, and therefore they automatically fall into the risk zone, as they try to reduce the tax burden. In this situation, extreme caution and good knowledge of the regulatory framework are required.

It is quite insulting when the tax risk arises due to the inconsistency of the management apparatus. The accounting structure and managers do not have the possibility of preliminary discussion of the planned transaction, as a result of which the entire business suffers.

Ambiguous interpretation of the law and documentary violations

The risk of negative tax consequences is most likely in the conclusion of unusual contractual relations, the financial mechanism of which is not fully considered.

Financial tax risks often arise in connection with poor-quality execution of documentation or its absence. According to statistics, most of the additional tax payments appeared due to a lack of paper confirmation of the operation. This is due to the fact that managers, having received money, do not give due importance to the design of their appearance.

Portfolio and external risks

The so-called portfolio risks bear a hidden danger, especially if the company has a large network of branches or subsidiaries. The situation can become threatening, when individual risks will unite in one whole. At first glance, the negative situation that has developed in a single branch may seem trivial, but when such problems begin to be of a massive nature, it becomes rather difficult for the firm to neutralize the consequences.

Changes in tax laws, litigation, change of management - all these facts relate to external risks. Regional features of taxation can aggravate the situation, as in our country some tax rates are set at the local level. And if the company conducts foreign trade, then the accounting of taxes is even more complicated.

Who should manage risks

The fact that risks can and should be managed is beyond doubt. To find the right solutions and ways out of the crisis in modern business, professional consulting firms are being created. To manage the tax risk, there are a number of techniques and methods that can predict the likelihood of an undesirable event.

Economic activity in the sphere of risk management is rather specific and requires profound knowledge in the field of taxation, civil and criminal law from professionals. The main goal in solving taxation problems is to find the optimal combination of the revenue side and the possible risk. This formula is especially important in the implementation of highly profitable projects, as it is known that the higher the income, the greater the risk.

Golden Risk Rules

As in any other sphere, risk management is subject to certain rules, compliance with which leads to a positive result:

• To obtain a relatively small benefit, you can not risk many.
• You always need to clearly understand the consequences of the actions.
• In business, you can never be at stake more than you have.

These economic constants are sufficient to keep the business within the acceptable risk. Observance of such principles generates the basic methods of warning of risky situations. In other words, risk can be avoided, accepted or reduced.

Avoiding risk is the most preferred method. It is based on a complete refusal to complete the transaction in case of detection of negative consequences. But the rejection of the planned model of doing business also means a loss of profit. So, excluding tax risk, you need to balance it with other losses. In addition, the abandonment of one risky business can lead to a chain of other negative consequences.

The adoption of tax consequences can be complete or partial. In this case, the businessman must meet his own assets for all the consequences that arise as a result of the implementation of a particular operation.

Reducing tax risks is the most time consuming and at the same time effective way of solving difficult economic situations.

Tax evasion

In our country, tax evasion is an illegal act, for which various penalties are provided. The consequences of targeted evasion of tax liabilities can be divided into criminal actions and non-criminal ones.

Violation of tax and legal legislation, improper accounting, understating the real value of goods, arithmetical errors allowed in the calculation of taxes, are non-criminal actions depending on the amount of the crime.

Methods of tax evasion leading to a deplorable result

The leader among all schemes of illegal tax evasion is a hidden implementation.

This simplest, and at the same time, criminal method, is based on the non-conduct of part of the proceeds of the accounts of accounting and tax accounting. The concealment of income can be carried out by violation of the use of CCP, inaccurate reflection of contractual payments and exceeding the limit of cash settlements between legal entities. When using these methods, tax accounting is conducted with the help of a double bookkeeping, into which deliberately false data is entered.

In accordance with the criminal legislation, such "optimization" of taxes, depending on the amount of damage caused, is punishable by deprivation of the opportunity to conduct a particular commercial activity. Also, the perpetrators can be arrested for up to six months and deprived of liberty for up to three years.

Legal optimization of taxes

Legal optimization of taxation is based on certain principles that are observed in the relationship between traders and controlling bodies:

• Taxes must be paid in accordance with established legislation.
• Charges must be paid no later than the last day of the set deadline.
• The organization is entitled to charge minimum taxes without violating the law.

Legitimate optimization of tax payments must be separated from deliberate evasion. In order not to cross this line, professional planning and control should be organized in the company. The tax risks of the contract, which is concluded with the partner, must be timely evaluated and optimized. Every manager should be well aware of the degree of responsibility that will be assigned to him in case of violation of the law.