October 9, Ms Rong, chief of Development Department of F&T Center takes part in the CFO salon organized by China Financial & Economic News and gave brief opinion on issues with which CFOs are interested and confused. The attendance expressed that the most irritating problem of CFOs is how to handle the relation with directors and CEOs. The professional opinion of financial staffs often can’t be respected and followed by managers. There is often divergence between the both sides on account managing. Then the financial staff could be forced to do something they would not prefer to. And this could erode the trust and cause dissatisfaction.
October 9, Ms Rong, chief of Development Department of F&T Center takes part in the CFO salon organized by China Financial & Economic News and gave brief opinion on issues with which CFOs are interested and confused. The attendance expressed that the most irritating problem of CFOs is how to handle the relation with directors and CEOs. The professional opinion of financial staffs often can’t be respected and followed by managers. There is often divergence between the both sides on account managing. Then the financial staff could be forced to do something they would not prefer to. And this could erode the trust and cause dissatisfaction.
We believe that tax lawyer may prove very helpful in resolving the gap and promote communication between CFO and managers:
1, Assistant in tax law: CFOs and financial advisors both mainly concentrate on account managing works. Usually they are not good at understanding and analyze tax laws. Because of the function overlap, CFO could feel uncomfortable as they might feel financial advisor is like a supervisor watching over them, unlike the assisting function of lawyers to legal staffs in corporations. But tax lawyers, unlike a financial advisor, are good at handling tax law and are able to assist CFO a lot with their work.
2, Solution Designing: Limited by their knowledge structure, CFO and financial advisor will feel it difficult to draft a perfect financial solution. Therefore the financial difficulties left to CFO after any investment decision is made could cause many problems on expense and taxation. By using his compound knowledge, a tax lawyer may provide several solutions for corporation’s business or investing operation. By creating new legal subject or deploying new legal relations, he may reduce the tax cost and financial risk while still achieving business objects.
3, Estimating Risks: Still, because of being not familiar with tax law, it would be difficult for CFO and financial advisors to reveal the boarder of ‘legality? What kind of risk there will be? What is applicable? Being unable to answer these questions, CFOs may choose to be more conservative and stay away from any creation. Tax lawyers are able to expose the risks and help CFO analyzing them. As the result, CFOs would feel much safer to create new corporate financial structures and therefore they will be more important and respected in the company.
