Study On The Tax Risk Management Of Large Construction Enterprises

Along with the continuous development of market economy,our enterprises are getting stronger in all walks of trade.As a result,large enterprises have gradually grown into a pillar of finance income in our country.According to the state administration of taxation,large enterprises,which account for less than 2%of the nation's taxpayers,contributed more than 90%of the tax revenue.On the other side,large construction enterprises have been playing the role of material production unit closely related to the national economy and the people's livelihood.Due to their high sensitiveness to public policies,scattered projects,wide ranging covers,complex organization structures and weak tax management,large construction enterprises are facing huge tax risks.The concentration of tax revenue results in the great attention of the tax authorities for tax collection and administration of large enterprises."Promote development through services" has been a new direction of tax reform on the condition of the "new normal" economy,as a result,tax authorities will pay more attention on large enterprises' risk management and governance structure,and try to show more guidance on taxpayers' self-management,which could help reduce compliance risk.In construction industry value-added tax.or VAT,has replaced business tax from May 1,2016.In the long run,this change will lead to industry reshuffle:increased construction cost will gradually eliminate those disordered-management firms who used to rely on competition of low prices,tax evasion and dodging by avoiding invoicing and,oppositely,those with thorough risk-management system,strong management ability and normative financial accounting will continue to grow.Thus,large construction enterprises have to correct their risk view and comprehensively improve their value by normalizing management behavior and risk control first.This article,taking construction industry as its target,demonstrates the way large enterprises establish tax risk management system.Chapter I introduces the background and significance of this topic,with the highlight on the influence of informatization background,and presents a review and summary of existing research.In Chapter ? ?firstly make explanations on several key terms,and expound the basic theories of tax management in large enterprises,which play vital roles in the subsequent construction of the tax risk management framework,and I also make some comments on a typical case.Chapter ? analyzes the characteristics of tax risk management in construction industry and big enterprises.These characteristics determine the specific implementation steps and methods of risk management below.Chapter IV discusses present situation of tax risk management of large construction companies.On one hand,I list main risks from two aspects of the value chain and the main tax categories,and on the other hand,I unscramble several common imperfections faced by those large construction companies.Chapter V builds up a large-corporate tax risk management framework,from the infrastructure,the core design to risk control and response activities.Chapter VI is an enterprise case study,which presents practical application of the theoretical framework.I analyzes its tax risk situation and put forward some drawbacks in its management,and then raise several specific application and optimization suggestions based on the framework above,in which the identification,assessment and process control of risk are the most important.The logic system of my paper could be concluded in one sentence,which is,conclusion comes from practice and also get applied in practice.This article adopts the method of combining theoretical research and case study,and tries to sort out the real situation of large construction enterprises in China,relying on the existing risk management related theories(which have already got accepted and assumed as mature worldwide),and combining the current circumstances,existing problems and the directions of target improvement which have been found in the field research on the tax risk management progress of a specific large construction enterprise.Based on all these preposed work,the theoretical construction of the tax risk management system of large construction enterprises is finally formed in my article.Thus I add case analysis and application support to the generalized framework through field research.The specific methods of risk identification,evaluation system and the detailed control processes,mean strong operability and extensibility to large construction enterprises.However,due to my limited ability,this article lacks evaluation and verification on effectiveness of the tax-risk management mechanism,where further research is absolutely required.