A Report Of The Tax Risk Management Of The Automobile 4S Shop

At the beginning of the last century, after the Enron World Com scandal, followed by the promulgation of Sarbanes Oxley Act, the US anti false financial report of the Committee put forward the concept of comprehensive risk management. The developed countries and large multinational companies began to attach great importance to enterprise tax risk. In contrast, the tax risk management research in our country was started late. With China Ping An, Skyworth and other large companies having plunged into tax scandals, the tax risk management deficiencies and errors of enterprises may not only make enterprise incur financial losses, loss of reputation, and even lead to bankruptcy. Although domestic and foreign scholars in recent years have further explored the enterprise tax risk management, mostly confined to the theory, actual industry case was less. Therefore, according to the actual situation of our country, it is especially important to select the specific industry to discuss the enterprise tax risk management. In this paper, we take the car 4S shop as the starting point, applying the existing theory to the analysis and discussion of automobile 4S shop tax risk, so that we can better understand the existing theory. At the same time, I hope that other industries can have some inspiration in tax risk management because of this paper.The past decade is a golden decade for China’s auto market, now with implementation of the restrictions around the card limit, car sales market gradually step into the vulgar growth stage. The increasingly fierce competition in the industry, each step of the automobile 4S shop is very important. Because the car price being generally higher than the general merchandise, the complex relations between the automobile 4S shop, manufacturer, the financial institution, the insurance company, and the customer, complex financial problem of the automobile 4S shop, make the automobile 4S shop having many tax risks worth paying attention to. In addition, a number of tax audit cases show that tax risk of the car 4S shop is very high. If 4S shop cannot properly deal with tax service, effectively prevent and respond to tax risk, tax risk may cause irreparable damage. Therefore, the author chooses the auto 4S shop as the target industry to explore the enterprise tax risk.The full text is divided into five chapters. The first chapter is the introduction, from the background and significance of the research. Choosing the automobile 4S shop as an example, this paper puts forward the core research content and the main innovation points. The second chapter is literature review. Through the definition of tax risk, tax risk management and other concepts, the author classify the relevant theory, refine and draw on the relevant theoretical experience of foreign experts, summarize the shortcomings of the existing research, to clear the research content of this paper. Tax risk has different meanings in Chinese. Tax risk is often for business purposes, and also for the tax authorities concerned. Meaning of tax risk, in the author’s view, should not only include that the tax overpayment and also shortage. The third chapter is the main introduction of the tax business of 4S shop and the main taxes involved. Auto 4S shop has colorful service, including vehicle sales, after-sales service, financial insurance, used car sales, and mainly related tax is the value-added tax, business tax and corporate income tax. Chapter four is points shall be regarded as sales business, charges and fees, rebates and scrap processing, Purchasing on behalf of the consignment, the interest expense from the pool of funds these five aspects, starting from the actual tax inspection cases, the manifestation of the automobile 4S shop tax risk analysis, explore causes behind the tax risk. Vehicle sale with accessories gift is the most common promotion way, but processing parts often requires regarding as deemed sales. Reasonable invoice filling mode can help enterprises reduce unnecessary spending on value-added tax, reduce the tax risk. Stock car test drive don’t need to be regarded as sales, but 4S shop often regarded it as sales, the need to regard regional vehicle transferred as sales depends on the circumstances considered.Sales to customers receive expedited fee, fare equivalent external costs as part of the sales to calculate and pay VAT, automobile 4S stores may not confirm or less confirm sales. The mortgage insurance rebate income is a hidden fee income, should be taken as the case of VAT or of business tax. Various forms of the manufacturer rebates, are generally need to input tax roll out, waste processing need as scrap reason whether it needs to be transferred out income tax. Purchasing on behalf of the consignment may lead to unnecessary VAT expenses. Auto distribution group set up a pool of funds, the use of the settlement center mode, may produce tax risk. The fifth chapter is about the performance of the automobile tax risk and the causes of the risk, and then author puts forward the tax risk management measures that the 4S store can take. First, 4S shop should strengthen awareness of tax risk management, establish an effective tax risk management structure. Control over tax risk is not just the financial sector, but also the whole enterprise thing. Only the relevant positions of different departments control the tax risk together, can enterprises reduce tax risks. Secondly, the control of tax risks also need to standardize the financial management. Standard financial disposal not only make the enterprise response to the tax inspection reasonably, but also can make the enterprise know the size of tax risk fairly well. Once again, preventing tax risk, the most important is that the 4S shop can do the tax risk assessment. On the basis of the standard clear financial management, according to the 4S store’s own tax burden index, sales revenue, gross profit margin and other indicators, 4S shop can keep awareness on the daily management of their own tax risk, avoid tax risks continuing to accumulate and finally causing irreversible loss. Then, the 4S shop also need to pay attention to the internal communication and learning. Finally, the perfect internal audit system is also an indispensable means to ensure the 4S shop tax risk management durable, normalization.