July 7,2004, Mr. Yan was invited to give a lecture on tax saving to members of Shanghai Association of Foreign Economic and Trade Enterprises. There are more than 1000 managers and finance staffs from member enterprises participated in this lecture.
July 7,2004, Mr. Yan was invited to give a lecture on tax saving to members of Shanghai Association of Foreign Economic and Trade Enterprises. There are more than 1000 managers and finance staffs from member enterprises participated in this lecture.
Mr. Yan analyzed three main risks faced by foreign trade enterprises, the risk from obtaining false written VAT invoices, risk of improper deduction of VAT input taxes, risk arising from authentication of VAT invoices. It was emphasized that since there isn’t legislation for ‘invoices which are out of control’ (invoices controlled by person other than their legal owners), the bona fide acquirer can’t deduct the input tax using these kind of invoices. So when obtaining VAT invoices, enterprises must be cautious to check the credit and operation statues of the opponent company to prevent unnecessary loss.
Mr. Yan also stated that tax planning is a must choice to prompt the international competence of enterprises. He used the example of real estate lease to explain the principles and key points in tax planning. That is making use of tax preferences and other legal resources available, to choose the best solution before putting hands on effort.
As Chief of Training Department of the association, Mr. Jiakuan Huang said, each month their association will hold a lecture, but the audience at that day created a new record of attendance. This showed tax problem is really a key issue to enterprise security and development.
