Tax risks have been drawing increasing attention from enterprises, especially large ones. Last year, a listed company in China was found to have violated regulations in its business operations and tax payments for the previous year during a routine inspection by the tax authorities. Subsequently, the tax department conducted a four-month tax audit on the company. For a time, the company faced doubts from customers and numerous shareholders. Not only was its financing plan hard to implement, but also its stock price continued to fall in multiple trading days.
It is understood that in recent years, many large international companies have encountered tax problems due to their lax control of tax risks. Many well-known domestic companies such as Gome, Suning, Skyworth, Wahaha, and Ping An of China have successively become embroiled in these issues, suffering considerable losses in their business operations and reputations. Metaphors such as "a shadow that can't be shaken off" and "a time bomb" express the fear and helplessness of some senior executives of large enterprises towards tax risks.