Poor tax planning can lead to several risks that can adversely affect the business:
- Financial Penalties: Non-compliance with tax regulations can result in hefty fines and penalties. - Reputation Damage: Legal issues related to taxes can tarnish the company's reputation. - Operational Disruptions: Tax-related legal battles can divert resources and attention from core business operations. - Missed Opportunities: Inefficient tax planning can lead to missed opportunities for tax savings, negatively impacting profitability.