The Study Of SL Pharmaceutical Co.’s Tax Administration

As the market-oriented economy continues to improve in China, enterprises arefacing increasingly complex system of tax policy, increasingly complex markettransactions and increasingly stringent tax collection measures. Increasingly changingtax environment leads to more complex tax issues. At the same time, Chinesepharmaceutical manufacturing enterprises are facing more serious tax issues.Pharmaceutical manufacturing industry starts late in China, but develops rapidly. I amconcerned of the tax administration issues with the development of the pharmaceuticalindustry. I conduct research on tax administration issues of pharmaceuticalmanufacturing companies by choosing a certain case.I hope that pharmaceuticalcompanies can establish a correct concept of tax administration through myresearch.They can reduce the tax burden on companies and prevent more tax increasingthe economic burden. Make the tax burden on legitimate businesses at a reasonablelevel with little risk.Firstly, I did empirical research on the tax administration of China’s pharmaceuticalmanufacturing industry. Select the financial data from2009to2012of thepharmaceutical manufacturing listed companies in Shenzhen and Shanghai.I did thedescriptive statistics analysis of value-added tax and income tax burden, and drawconclusion that the overall tax burden of pharmaceutical manufacturing companies ishigher.This paper focuses on the in-depth study of a sample enterprise. This paperselects Harbin SL Pharmaceutical Co.(SL Pharmaceutical) as the sample enterprise, anddo the research and improvement of the status of its tax administration.In this paper, Iconducted in-depth analysis of its actual production conditions and financial data inrecent years. I focus on two aspects: the tax cost management and tax risk management.In the aspect of tax cost management, I analyze the tax burden of SL Pharmaceuticaland compared with the industry. In the aspect of tax risk management, I studied theinternal control and illegal situation in recent years and drew conclusion that thecompany is facing a high tax-related risks and lack of tax risk managementsystem.Based on the problems identified in the SL Pharmaceutical Research, the paperproposes improvement strategies. In the aspect of tax cost management, I propose fourmethods.The company should improve everyday corporate tax management practicesfirst. Afterwards, it should take full advantage of tax incentives and tax deferral leveragetechnology.it should also connect business expansion strategy closely. In the aspect oftax risk management, this paper intends to build a complete system for SLPharmaceutical. The system should include the improvement of tax risk controlenvironment, tax risk identification system, assessment system, controlling system and performance evaluation system. The tax administration level of SL Pharmaceuticalwould improve through the above strategies, and it would provide reference for theentire industry.