Under normal circumstances, only when the cost of an enterprise is lower than its income can it obtain a certain profit. But sometimes the cost is higher than the income, so is there any tax risk if the cost is higher than the income? Next, let's follow the small series of Deep Space Network to understand whether there will be tax risks if the cost is higher than the income. Let's see what the old accountant says.

Is there any tax risk when the cost is higher than the income?

Every month, enterprises need to go to the tax bureau to complete the tax declaration, and at the same time submit the corresponding accounting statements (quarterly), without filing separately. However, the tax bureau will arrange corresponding personnel to conduct tax assessment according to the situation of the enterprise, and give certain assessment suggestions. Assuming that the untrue situation is found, the enterprise will be required to pay taxes. If the enterprise does not make corrections, pay taxes, explain the reasons and circumstances, or have insufficient reasons. Then the tax bureau will submit it to the inspection bureau for a key inspection of the enterprise.

To sum up, if the cost of an enterprise is higher than its income for a long time, there will be tax risks.

Knowledge expansion: introduction to tax risks

1, enterprise tax risk content: It mainly involves two aspects. One is that the enterprise has tax payment behaviors that do not meet the tax regulations, such as failing to pay taxes and underpaying. Therefore, it faces risks such as paying taxes, fines, reputation damage and penalties. Secondly, accurate tax laws are not applied to the business activities of enterprises, for example, relevant preferential policies are not fully used. As a result, there has been an overpayment of taxes, that is, an unnecessary tax burden has been borne.

2. Characteristics of corporate tax risk: Corporate tax risk has the characteristics of subjectivity, inevitability and anticipation. Subjectivity means that taxpayers and tax authorities have different understandings of the same tax-related business, which leads to corporate tax risks; Inevitability refers to the fact that the ultimate goal of an enterprise in the process of production and operation is to maximize the net profit after tax, and taxation itself is mandatory. Therefore, the phenomenon of information asymmetry between enterprises and governments has emerged. Finally, it makes it difficult for enterprises to avoid tax risks. Advance also refers to the behavior that the existence of enterprise tax risk precedes the performance of tax responsibility. It can reduce the tax risk to some extent by understanding the advance of enterprise tax risk.