23 May 2013 (Thu)
This webcast will be available until 22 May 2014.
Over the years many MNCs have been focusing on driving business growth and gaining market share in China. There was lesser attention paid over the internal controls of their PRC subsidiaries, especially on the overall effectiveness in customs (in terms of tariff and non-tariff barriers), tax and even treasury functions. This could be due to limited internal resources available for deployment, over reliance on the myth of China adopting a "relaxed and negotiable" enforcement environment, trapping cash inside China was not a big concern as expansions require funding anyway, etc.
However, time has changed. The growth of China economy has slowed down as compared to the past. Customs and tax authorities across the globe are becoming more serious in grooming a compliant environment. The price to pay in resolving non-compliance issues in China is much higher nowadays. It could also unknowingly result in trap significant amount of idle cash due to lack of internal controls and communications within an organisation. Worst case scenario, the company's reputation could be at stake and it is certainly a situation senior management would like to avoid in a emerging market like China.
In many instances as we observe, certain types of industries and business models are commonly selected by PRC customs and tax authorities as audit targets. MNCs' lack of cautiousness on customs (tariff and non-tariff), tax and treasury risks could pose significant impacts on the company's financial status and operational/supply chain effectiveness. It is time for senior management to take appropriate actions in assessing the magnitude of customs, tax and treasury risks your China operations are facing, explore possible ways to mitigate these risks and map out proper improvement procedures.
We conducted the webcast in the form of case study to share the experiences that we have come across. Below are some of the areas we would be focusing on in this webcast:
- What are the most common customs and tax challenges faced by PRC manufacturers operating under processing trade models and retail and consumer business operators?
- How do the Chinese authorities approach these challenges?
- Are there any planning opportunities beyond precautionary measures, such as trapped cash management, utilization of free trade agreements and other preferential tax/duty treatments.
This is a 1 hour webcast including a live Q&A session. Webcast link:http://event.on24.com/eventRegistration/prereg/register.jsp?eventid=617313&sessionid=1&key=88FDC2948CBB0A415E01272DD88A6B92
||Joyce Law, Partner, PwC Hong Kong|
Derek Lee, Partner, PwC Hong Kong
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A series of webcast is being planned. Watch for more details