Tax Audit Risk Research In The Sewage Treatment Industry

With the rapid growth of economy,the urbanization and industrialization have moved into high gear,causing the increasing demand for urban water in China.Meanwhile,the pollution of water resources is getting worse.During the "Thirteenth Five-Year Plan" period,Our country has enhanced the environmental protection,which has not only strengthened the supervision of the environmental protection inspection group,but also introduced the "Environmental Protection Tax Law".Taking it as an opportunity,the sewage treatment industry has bloomed in recent years.At the same time,however,numerous enterprises in the wastewater treatment industry have also been frequently exposed due to the involvement of tax-related issues,ending up with no remedy for the involved companies to handle with the economic loss and severe reputational damage Obviously,the sound development of sewage treatment industry has a stake with the highly concern of tax risk issues.Based on the current situation of tax audit risk in China’s wastewater treatment industry,this paper combines the theoretical study and the empirical analysis,mainly illustrating the tax audit risk and its causes in the wastewater treatment industry through the analysis of documents,cases,data and so on.Besides,this paper selects Company A,a typical listed one in its industry,as a case to study its operations and financial conditions and calculates its related taxation indicators,by which the tax audit risks are assessed through the measurement results.What is more,this paper makes a further step to a systematic analysis of possible tax audit risks and its causes.At last,this thesis also offers methods to crack down the tax audit risks of wastewater treatment industries from four aspects: strengthening the risk management of corporate tax audit risks,completing the internal controls of corporate tax risk,bettering the corporate accounts receivable management system,and improving corporate tax-related information sharing mechanisms.The study of this paper makes one step further to perfect the corporate tax audit risk theory and plays a guiding role in helping the wastewater treatment industries to keep away tax audit risks.