A Study On Taxadministration Of Auto Sales Companies

With the continuous development of auto economyin China, car sales industry has made considerable progress in recent years; volume of car sold inChina’s market has been the world leaderfor several years. Auto sales companieshave been the backbone of local economy, they canalso increase fiscal revenue, promote social employment. For the purpose ofmaintaining long-term healthy development of the enterprise, assisting the tax bureauwithmanagement of key tax sources, enhancing the steady momentum of regional economy development, it is necessary to conduct in-depth research on tax administration of auto sales company, the main contents includetax planning arrangements of business matters, designingcontrol methods of tax risk management, practicing tax administration system of the key issues.Then summarize tax management experience in the industrythrough case studies, abandon the deficits of tax administration, seek economic benefit inflow for enterprises depending on the use of tax administration, prevent improper tax cost of illegal arrangements that may be brought to enterprises.In this paper, we take the representative enterprise of the industry FAW XX sales company as an example, in connection with the company’skey financial data of nearly three years, analyze the key issues in the tax management of car sales business, such as tax planning, tax risk management, and propose business tax planning schemes, tax risk control system and process accordingly to the study. This paper first describes the main content of the tax administration, such as tax planning, a series of theoretical problems of definition of tax risk management, tax planning principles, ideas and methods, tax risk factors, identification, and controlling system, principle andmeasures. And then combined with practical analysis, operate in key areas for optimizing one by one. Including planning arrangement of the consumption tax in the procurement chain, take advantage of the widening difference between buying and selling prices, co-ordinatethe price between commodity cars with different vehicle emission to achieve optimization purposes. Specifythe promotion policy in the marketing aspects, so as to meet compliance under the premise of obeying the tax law to better serve the sales, not occasioned tax consequences that affect the normal operation of the company. In the process of confirming the accounting in selling expense, based on the accrual basis, reasonable and other tax management principles, properly plan tax management in meeting the risk control of the premise. Throughout the text the idea is to design tax planning program focused on key taxes, means and system construction of tax riskcontrol, wish to make some effective tax administration recommendations on the industry.