Welcome To The Tax Intelligence Report!
The November 2006 issue of The Tax Intelligence Report highlights the career track of Daniel Chan, Senior Partner/ Head of Tax, Asia for DLA Piper Rudnick Asia operations headquartered out of Hong Kong. Mr. Chan’s views are highly respected and valued because of his role in advising multinational organizations with operations throughout the Asia Pacific region. We genuinely appreciate Mr. Chan’s time in answering our questions in this month’s issue.
Respectfully,
Kathleen Jennings
Editor, The Tax Intelligence Report
Kathleen@etsearch.com
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| IN THIS ISSUE |
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Business Relationships in China
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"A Leader In The Tax Profession"
Daniel Chan - Senior Partner/Head of Tax, Asia
DLA Piper Rudnick Gray Cary, Hong Kong, China
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Verbal Intelligence
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"A Leader In The Tax Profession"
Daniel Chan - Senior Partner/Head of Tax, Asia
DLA Piper Rudnick Gray Cary, Hong Kong, China | |
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Mr. Daniel Chan is Senior Partner/ Head of Tax, Asia for DLA Piper Rudnick Gray Cary in Hong Kong, China. Prior to joining DLA Piper in 2005, Mr. Chan was Senior Partner with Baker & McKenzie in Hong Kong, China for ten years. Mr. Chan worked as a Solicitor for Woo, Kwan, Lee & Ho in Hong Kong and also for Gowling, Strathy & Henderson. Mr. Chan is recognized by the Asia Pacific Legal 500 as one of the leading individuals in the practice of corporate and commercial law in China and has been named by the Asia Law Leading Lawyers as one of the leading tax lawyers in Asia. Mr. Chanearned his BA, MBA and JD from the University
of Toronto in Canada. |
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(KJ): What do you see as important developments to date in the tax profession?
(DC):
In Asia and in particularly China and HK, I note that there is a short supply of tax professionals. Furthermore, almost 99.9 percent of the tax professionals are accountants. I believe there is a big and important role for tax lawyers to play in these regions since tax planning should be done with a thorough understanding of the regulatory and legal aspects of the particular transactions. I personally would like to see the region develop more tax lawyers for the above reasons.
(KJ): How do you work with your tax colleagues to partner successfully throughout your organization?
(DC):
As a China tax specialist, I work closely with international tax lawyers within our organization, as well as tax specialists in other Asian countries. It is important that we develop an understanding of the objectives of the tax planning exercise from other jurisdictions and attempt to achieve these objectives given each country’s particular tax regime.
(KJ): What is important for others to know when conducting business in China?
(DC):
China is a highly regulated business environment. Moreover, government administration / practice also plays a big part in this environment. It is very important that business operators become familiar with these aspects of the business environment since there are a lot of hidden costs/issues in conducting business in China.
(KJ): What is the most important advice you can provide a client in who has business interest in China?
(DC):
Understand your operations, improve communications between HQ and local staff and perform rigorous monitoring and auditing efforts.
(KJ): What advice would you give anyone entering the tax legal profession in China?
(DC):
I would recommend that anyone working in China grasp the concepts, pay attention to details, understand the implementation practices and think outside of the box. Also, you cannot be effective as a tax lawyer without understanding the laws in the region and how they impact other areas of the business.
(KJ):
Daniel, thank you for the time you have taken to answer these questions. Your perspective is very valuable and we appreciate the time you have taken to share your experience with us.
Kathleen Jennings
(KJ)
Editor, The Tax Intelligence Report
Kathleen@etsearch.com
Daniel Chan
(DC)
Senior Partner/Head of Tax, Asia
Daniel.Chan@dlapiper.com |
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VERBAL INTELLIGENCE
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Endemic \en-DEM-ik\
Adjective
1 : Belonging or native to a particular people or country
2 : Characteristic of or prevalent in a particular field, area, or environment |
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The Tax Intelligence Report is published by ET Search, Inc. We are an internationally recognized search firm that specializes in the placement of tax professionals with multinational corporations, law firms and public accounting firms. For more than 25 years, our organization has been retained by U.S. multi-nationals to locate tax professionals in most major cities around the world. For more information on our global tax recruitment firm, you may email us at ets@etsearch.com or visit our website at http://www.etsearch.com. | |
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| Business Relationships In China
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China is the most populated country in the world and is emerging as a major global economy. China is a country of etiquette and ceremonies; an understanding and knowledge of the customs will enhance the success you have in building these business relationships. There is a central concept to Chinese culture called “guanxi” which signifies relationships or connections. Guanxi is a network of elaborate relationships promoting trust and cooperation. Establishing a sincere, supportive relationship based on mutual respect is an important aspect of Chinese culture. This month we will focus on what one can do to develop strong business relationships in China.
Establishing a proper introduction with your counterparts is vital before entering into any business relationship in China. The Chinese like to deal with people they know and trust. Introductions are formal; therefore, it is important to address them with a title and their last name. If you do not know the title of the person, addressing them as “Mr.” or “Madam” is the most respectful way to address someone in China. It is important to wait for your Chinese business contact to initiate formal greetings. When introduced to the Chinese you should maintain good eye contact as avoiding eye contact is considered untrustworthy. Bowing or nodding is a normal greeting; however, if you are offered a handshake, wait for the Chinese to offer their hand first. A nod most often signifies that the person is simply listening. It is not polite to point when speaking; if you must point for any reason, you should use an open palm during this gesture.
Another business practice includes the exchanging of business cards. When conducting business with the Chinese it is customary to have one side of the business card printed in Chinese and the other side of the business card printed in English or your native language. You should present your business card with both hands and with the Chinese side facing up. When accepting someone’s business card in China, study it carefully before placing it on the table or into a card holder. You should never accept a business card and stuff it in your pocket as this is considered very disrespectful. It is also not proper to write on a business card when dealing with the Chinese.
The hierarchical structures of Chinese society and business organizations are based on a strict observation of rank; the individual is subordinate to the organization. When entering a meeting, the Chinese will enter in hierarchical order as this signifies the status of the participants in the meeting. In most cases, meetings are focused more on social opportunities than on negotiations. During meetings, humbleness and patience will be the key to your success. The Chinese work towards relationships built on trust and this takes time and patience. In China, business flows from friendship and it takes time to develop and solidify business relationships. The Chinese feel that long term relationships are much more important than hurried business transactions. The decision making process is slow; therefore, you should not expect to conclude your business swiftly.
Another custom you will want to master is the Chinese business dinner or banquet. Food is a serious business in China and mastering after-hours dinner etiquette will be very helpful in building your relationships with the Chinese. Early on in your business relationship you can expect to be invited to dinner to build the guanxi. Toasts are a very important part of the banquet or dinner etiquette and may involve a popular rice based drink called MaoTai. It is important that you do not take any food or drink before the host of the dinner. The most important guest takes the first mouthful of food from the shared food and then it is offered to the second most important guest, after that the order does not matter. Refusing local food and drink is considered impolite; therefore, if you must decline it is polite to do so for medical reasons. It is also important to take a small portion of food from the shared plate until everyone else has had a portion. It is a custom to show your appreciation of generosity by leaving some food on your plate. If you leave your plate clean they may think that they have not provided enough food for you to eat. In addition, the Chinese do not discuss business deals at the meal because they are focused on building a trusting relationship. Enjoy your time at dinner by building a strong relationship and the business will follow.
Respectfully,
Kitty Jennings
Editor, The Tax Intelligence Report
Kitty@etsearch.com
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