The Study Of Expanding The Scope Of VAT On Financial Risk In Liaoning Province

VAT is a commodity turnover tax, the tax is based on the value added during thetransfer process. VAT "expanding around" refers to the original pay sales tax items toVAT. Liaoning Province is now the pilot VAT "expanding circumference" of the industryon the basis of the original pilot added rail transport and postal services.VAT "expanding scope" is a crucial reform tax system structure. From January1,2012Shanghai was the first to pilot the selected transport and some services, referred toas "1+6" industry, to August2013VAT " to expand around " in the country tocommence January1,2014turn rail transport and postal services into value-addedtax.VAT "expanding scope" reform in the reduction of effective corporate tax, but thepilot area of finance income is greatly reduced, and the fiscal deficit expanding fiscaldifficulties, grow with each passing day. The central has clearly put forward toreasonable standards of local government risk early warning mechanism, perfecting localtax system. But the local government for financial risk prevention consciousness a littleindifferent, not according to the local development to build a risk prevention mechanism,local property tax can not make up for the VAT "expanding scope" after the main localtax business tax loss. In August1,2013, VAT "expanding scope" reform is in full swingin Liaoning Province, the VAT "expanding scope" reform is to solve the double taxationof the enterprise in Liaoning Province, but always will cause a certain impact on fiscalrevenue. For the slow development of the central region, Liaoning Province prominentfinancial difficulties, should seize this opportunity to establish a financial risk evaluationsystem, deepen the Local Tax System.Firstly, this paper reviewed the present situation of VAT "expanding scope" reform,including "expanding circumference" reform pilot policy, industry norms, the existingachievements, and introduces the significance of the reform. The second part is the VAT"expanding scope" theory and financial risk, mainly introduced the VAT "expandingscope" connotation and the background of the reform, the theories of fiscal risks,important control VAT "expanding scope" trigger fiscal risk. The third part introduces theliaoning province expansion circumference of reform policy, and simulated using the input-output method to estimate "expanding scope" around reform’s influence on thefiscal revenue of liaoning province. The fourth part is empirical analysis, based on thesimulation of Liaoning Province on the repairing of the indicators of risk, operation riskevaluation system for the comprehensive evaluation of Liaoning province "expandingcircumference" after simulation estimation results, and analyses the reasons of financialrisk in Liaoning province. The fifth part in Shanghai as a case to introduce the currentsituation of the expansion of VAT reform around and the risks of financial research. Thesixth part of the evaluation results and risks causes, from government revenue andexpend, debt risks angles, make recommendations to prevent financial risks.