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Cross-sector alliance: Promoting the development of the tax-related service industry - Exclusive interview with Liu Tianyong, Chairman of Hwuason Tax Agency Co., Ltd.

Nov. 13, 2023, 4:19 p.m.

In the context of comprehensively deepening the reform of the fiscal and taxation system, implementing the legal principle of taxation, and the reform of "decentralization, regulation and service", tax service agencies are facing unprecedented development opportunities and challenges. Hwuason Law Firm is the first professional law firm in China, dedicated to providing clients with legal services such as tax dispute resolution, tax audit response, tax planning, and corporate law. Relying on the professional advantages of "tax + law", Hwuason is particularly good at providing customers with the best solutions to complex and difficult tax issues. Recently, the reporter interviewed Liu Tianyong, chairman of the Hwuason Tax Agency, and gave some answers to questions related to the tax agency.

Question: As far as I know, Hwuason is China’s first professional tax law firm and is also the pioneer and leader in China’s tax lawyer industry. What factors prompted Hwuason to enter into a “cross-border alliance” with a tax accounting firm?

Liu Tianyong: In the past few years, I have visited many well-known tax service agencies in Europe, the United States, Australia and other countries. In Germany and Austria, I have visited two very large tax service agencies respectively, which left a deep impression on me. . Since both Germany and Austria have relatively developed tax laws and a high degree of legalization, these two large tax service institutions not only have law firms, but also accounting firms, forming a tax service group. In terms of professional characteristics, compared with tax lawyers, certified tax agents, like certified public accountants, are usually more proficient in accounting processing and tax-related auditing services. Certified tax agents and certified public accountants are highly overlapping and competitive. Certified public accountants, certified tax agents and tax lawyers are naturally complementary. One is good at accounting and the other is good at law. From this, I am also thinking that there should be such large-scale mixed tax service agencies in China. Play a complementary professional role to better serve customers.

In addition, from the perspective of the domestic situation, since the 18th National Congress of the Communist Party of China, under the background of comprehensively deepening the reform of the fiscal and taxation system, implementing the legal principle of taxation, and the reform of "decentralization, regulation and service", tax service agencies are facing unprecedented development opportunities and challenges. On the one hand, small and medium-sized tax accounting firms are facing many challenges such as intensifying competition in traditional businesses such as tax assurance, lowering fee standards, talent and market shortages in tax planning and other value-added tax business development, and unclear future development directions; on the other hand, In terms of tax services, professional, branded and large-scale tax service agencies have increasingly obvious advantages in the market, especially in the high-end tax service market and the expansion of large corporate customers. The market share is gradually expanding.

I believe that in the future, tax intermediary services will show a development trend of scale and branding. "Individual operations" will face bottlenecks, and the industry will present a new normal of polarization and strength. Against this background, in September 2015, we initiated the establishment of Hwuason Tax Agency Co., Ltd. to achieve "cross-border" horizontal cooperation with 12 high-quality tax agency firms in major provinces and cities across the country, realizing the "lawyer and tax agent" The first cross-border alliance has opened up a new model of "tax + legal" tax services. After the "cross-border" alliance, Hwuason's various subsidiaries have relied on the professional strength of Hwuason to comprehensively launch a "branding" and "scale" development. road.

Question: After cross-border alliance, how does Hwuason Group achieve coordinated development and what is the effective operation mechanism?

Liu Tianyong: After so many years, I think the core competitiveness of Hwuason is the professional advantage of "taxation + law". Our lawyers all have comprehensive professional backgrounds, and most of the key lawyers have the professions of lawyer, certified public accountant, and tax accountant at the same time. Qualifications. It is precisely with this professional advantage that we are particularly good at providing the best solutions to clients’ complex and difficult tax issues. Hwuason’s professional service advantages in tax dispute resolution, mergers and acquisitions, capital operations and other fields have great business complementarity with local tax accounting firms. This is the premise and basis for our cooperation.

Since the launch of the "cross-sector alliance" in 2015, in order to promote resource sharing and coordinated development among member firms, we have focused on three aspects: specialization, scale, and branding. In particular, professional development is the basis for the survival of tax-related professional service organizations. In order to enhance the professional capabilities of each member firm and achieve the development goals of resource sharing among member firms and the "integration" of the group, Hwuason Tax Accounting Firm Eight professional committees have been established within the group, including tax audit, tax agency, tax consultant, tax planning, tax training, tax disputes, tax judicial appraisal, and international taxation. Each professional committee has positions such as director (1 person), deputy director (1-3 people), secretary-general (1 person), and committee members (several). The 8 professional committees of Hwuason Group mainly perform five major functions: (1) ) Continue to promote the group’s professional development strategy; (2) Formulate the group’s business specifications and business operation guidelines; (3) Plan to carry out professional ability training within the group; (4) Promote business cooperation and exchanges within the group; (5) Coordinate external affairs Business cooperation and business development, etc.;

At the same time, we also hold regular training courses for directors, focusing on improving the capabilities of each member firm in six aspects: business innovation, business expansion, corporate management, risk control, brand building, and large-scale development, and as a member firm of the Hwuason Group A long-term internal training system.

Question: As an organization that has both a law firm and a tax accounting firm, could Mr. Liu please introduce the overall development plan and strategy of Hwuason?

Liu Tianyong: Regardless of tax services, accounting services or legal services, if you want to develop well, go far, and live a wonderful life, I think there are two ways to get bigger and take a personalized route. The so-called enlargement means the pursuit of winning by scale, unified brand, unified resource allocation, good temperament and image both internally and externally, firmly controlling the end customers, and constantly expanding and revitalizing. The so-called personalized route is a differentiated business strategy, which must be continuously accumulated and amplified at a certain point. At the beginning, the coverage should not be too broad, but should be specialized, refined, and in-depth. Let customers feel your characteristics and fully understand them. Recognize your characteristics.

Since its establishment in 2006, Hwuason has always adhered to the service concept of win-win cooperation and expanded its national service network in both horizontal and vertical dimensions. Currently, Hwuason owns Hwuason Law Firm and Hwuason Tax Agents (a 5A-level group). ), Hwuason Institute and other institutions, aiming to meet the diversified tax-related service needs of the market.

For Hwuason Law Firm, we are taking a boutique path. A "small but beautiful" firm sounds beautiful, but it is difficult to do, and it is even more difficult to do it well. Partners must constantly pursue Perfection requires innovation, attention to details, precise positioning, keen market insight, a spirit of perseverance, and moreover, capable talents. I personally think that first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen have the natural advantages of leading the trend in terms of geography and popularity, and seem to be more feasible.

Hwuason Tax Accountants Firm is following a development path of scale and branding. In terms of “scale”, we will continue to expand our national service network, encourage close cross-regional cooperation among member firms and the extension of advantageous services, jointly improve business skills and economic benefits, and achieve multi-channel marketing of new products; especially We are based in Beijing and have good large-scale customer resources. We can share the service procurement of central enterprises and large-scale foreign enterprise projects with various institutions for division of labor and collaboration. In terms of "branding", each branch firm shares the Hwuason trademark, uses the Hwuason LOGO, builds a common website, information placement and other brand displays, continuously realizes the unification of service standards and processes, and assists member firms to gradually establish and stabilize their market leadership in the region.

At the same time, in order to continue to promote the development of the industry and cultivate tax-related professionals who comply with the national tax legalization requirements, have "tax + legal" thinking, first-class expertise, and broad vision, and take advantage of online education, we were established in early 2018 The online education platform of Hwuason Institute (www.eHwuason.com) currently has 20,000 registered students. We hope to cultivate more professionals for the country’s taxation legalization!

Question: Recently, the China Taxation Association announced 20 units that won the "Industry Contribution Award" in 2018. Hwuason Tax Accounting Firm is the only non-association unit. What do you think is Hwuason's main contribution to the industry?

Liu Tianyong: I think that the fact that Hwuason Tax Agency has received such high praise and recognition from the association is inseparable from our unique positioning of “tax + law” and our open and innovative spirit. In particular, we are the first in China to advocate the "tax + legal" professional service concept and promote cross-border cooperation between lawyers and tax accountants. This should be a positive development for the tax accountant industry in the context of the reform of the tax accountant industry and the comprehensive opening of the tax-related service market. Innovation.

In addition, we have been actively promoting the China Taxation Association and the All-China Lawyers Association to achieve fruitful cooperation. Driven by China Tax, the two major associations jointly hosted the five consecutive "China Tax Law Forum and Chinese Tax Lawyers and Tax Agents Forum" from 2014 to 2018, as well as the six consecutive "China Tax Lawyers and Tax Agents Summer Vacation" from 2014 to 2019. Academy". At present, these two platforms have become the highest platform and important base for annual exchanges in the domestic tax-related service industry and training of new tax-related professional service talents. In addition, we have actively participated in the formulation of business standards for tax-related professional services by the China Taxation Association, and have been entrusted by the China Taxation Association to formulate business guidelines for tax-related dispute resolution and tax judicial appraisal. I think maybe in the above aspects, we have made some explorations and attempts in the development of the industry.

In addition, at the end of December 2018, Hwuason Tax Agency Co., Ltd. also won the "2018 China CFO's Most Trusted Tax Agency" award sponsored by the China CFO Development Center. There are three tax accounting firms in the world that have won this award. The other two are KPMG and Unitay.

Question: In 2019, Hwuason Tax Accounting Firm launched the “100 Cities and 100 Firms” recruitment plan. Could you please introduce the latest progress?

Liu Tianyong: In order to continue to expand and improve the national service network of Hwuason, on January 1, 2019, Hwuason Tax Agents officially launched the "Hundred Cities and Hundreds of Firms" recruitment plan. Compared with 2015, we have adopted a more open and flexible approach. In this way, it is planned to attract about 100 outstanding member firms in key cities (prefecture-level cities and above).

After the plan was released, it received great attention from the industry and soon received applications from more than 400 tax accounting firms across the country. After two rounds of review work, 18 companies were signed in the first round, and the first round of franchising press conference was held on January 26, 2019. 16 companies were signed in the second round, and the second round of franchising press conference was held on March 29, 2019. After two rounds of franchises, Hwuason currently has more than 50 subordinate tax service agencies in cities such as Beijing, Shanghai, Guangzhou, and Chengdu. According to the plan and arrangement, we will hold the third round of "Hundred Cities and Hundreds of Institutions" franchise conference in late October 2019.

Copyright@2019 Aequity.ALL rights reserved京CP备17073992号-1

Copyright@2019 Aequity.ALL rights reserved京CP备17073992号-1