China Real Estate Industry, The Tax Collection And Research

In the process of economic construction and the persistent accelerated urbanization course, China's real estate industry has obtained the unprecedented rapid development in recent years, as a result of the implement of urban housing system reform and the changes of the residential consumption structure. At the same time, the expanded real estate industry has led a rapid development in other correlated sectors and industries effectively. Therefore, the real estate industry has become more and more important in China's national economy and society development.As a potential taxpayer of the state revenues, the real estate industry is always regarded as the key factor of the taxation management stressed by tax authorities, increasing the proportion of its tax revenues in Chin's fiscal revenues. However, in China, the real estate industry still stays at the primary development stage: such as there is a lack of internal management standardization, self-regulation and external supervision. As a result, some specific real estate develop companies experience certain cheating behaviors in their financial accountings, like falsifying and overstating costs and expenses, understating amount of sales income and the gross profits, forging loss statements and so forth. The existence of these phenomena, aggravates the information asymmetry between the tax authorities and the real estate companies, moreover the relatively outdated taxation instruments and light illegal punishment lead it seriously affects the amounts of the state revenues and taxation management on the real estate industry.This paper starts with describing the current situation and the industrial characteristics of China's real estate industry, introducing some tax-related operating models, analyzes the main problems and the reason of inefficiency existed in taxation management on the real estate industry in enumerative manner from the aspects of taxation rules, technical methods, and the punishment on tax dodging, in view of the current situation faced by taxation management in China, and then lists a range of suggestions and proposals on improving the tax policy and collection management in real estate industry. The paper states that we should establish a unified, stable, fair and reasonable taxation environment, and enhance the taxpayer's abidance on taxation rules and regulations; also we should enhance the co-ordination between tax authorities and the other governmental departments to establish a close relationship each other; we should take full advantages of e-administration system of taxation, constructing the taxation ministration and protection network and carrying out the comprehensive taxation governance to improve the taxation management; we should consolidate the monitoring on accounting books, invoices, and receipts of the real estate industry starting from the taxation registers and declares, improve the taxation management instruments and efficiency; we should set up a scientific evaluation system on real estate as soon as possible to design an appropriate rules in taxation collection and calculation; we should enhance the tax inspection on real estate industry, intensify the fighting against the tax evasion, and improve the taxation management via tax inspection.