Research On Land Value-added Tax Liquidation Of Real Estate Enterprise Z From The Perspective Of Tax Risk Management

In the past 20 years,though different policy regulations were carried out,China's real estate market has been booming and its price is continuously increasing.Since real estate industry is closely related to the people's daily life,the public are highly concerned about the housing prices.In the 19 th China Congress report,the principle of “housing without speculating” has been proposed to stabilize the housing price.It also indicates that the government will exercise the function of intervention and regulation on the real estate industry.On the other hand,the land value-added tax that was formally introduced in 1994 can also help maintain a stable real estate market,as the purpose of introducing land value-added tax that was to regulate land value-added income.Since liquidation is the final step of the complicated land value-added tax collection process.It is of great significance for liquidation to play a regulatory role in taxation leverage and to prevent the risk of tax law enforcement.For the situation in Chongqing,a large amount of land value-added tax is pending for liquidation,and there is no clear regulation of the liquidation procedures.Moreover,the truthfulness of the liquidation data submitted by taxpayers is low,which causes risks for both the taxpayers and the tax authority.After the completion of replacing business tax with value-added tax(VAT),land value-added tax will become an important tax source for local government.Even after the formal consolidation of the national and local tax bureau in the near future,land value-added tax liquidation will still remain as a major challenge for taxation.Given the issues listed above and from the perspective of tax authorities,this thesis uses the theory of tax risk management to sort out the main risk points for land value-added tax collection,and establishes an index to indicate the land value-added tax liquidation risk.Taking the examples from Chongqing real estate enterprise Z and a land development project C,this thesis comprehensively explained the process of land value-added taxation based on tax risk management,including taxation information data collection,tax risk identification,risk level assessment,and risk control strategies.During the liquidation,both risk-oriented as well as file-based evaluation methods will be used to identify the taxpayers' specific tax risk lists.According to the degree of tax losses,the risk lists are divided into high-,medium-,and low-level and corresponding measures will be taken to manage the risks.In the study cases,real estate that are sold with lower-than-market price are effectively identified and been adjusted.Also,situations with cost inflation were also identified and the prices have been reduced accordingly.These measures therefore effectively avoided further tax law enforcement risks,standardized the land value-added tax liquidation process,and increased the efficiency of land value-added tax liquidation.Through these case studies,this thesis proposes five major measures to improve the land value-added tax liquidation,including the formulation of the “land value-added tax law”,complete the process management of land value-added tax liquidation,the development of a risk-oriented land tax management system,the establishment of a standardized land value-added tax settlement flow,improve the professional quality of land value-added tax managers.All these measures would have a positive effect for the management of land value-added tax in Chongqing as well as the whole country.