Tax Risks Recognition And Response Of A Municipal Refuse Burning PPP Project Company

PPP mode is cooperation between government and social capital,which is financed by social capital for construction and operation,and supervised and supported by government departments,can not only relieve the pressure of local debt,but also ensure the stability of local finance.It can also make full use of the advantages of social capital to improve the quality and efficiency of public investment,promote the improvement of local infrastructure,and promote the further development of urbanization.However,at present,there are no special tax regulations to promote the development of PPP in China,and some tax treatment is still controversial.In fact,the tax treatment of the PPP model also has its own unique characteristics.In addition,the PPP mode project cycle is long,and our country is in the active stage of tax policy reform,the policy risk is large,all these aggravate the tax risks of the project company.So we need to identify and deal with the tax risks in the whole PPP project.By analyzing the tax risks of A municipal refuse burning PPP project company from process of establishment,construction,operation to termination,we identified factors which caused tax risks.Factors such as the industry,the regional choice,the organization structure,the way of capital contribution and so on cause tax risks in the establishment stage.The choice of the construction contractor,bill management and input VAT planning cause tax risks in the construction phase.Factors such as tax policy understanding,government subsidies,dividends and other factors cause tax risks in operation stage.Factors such as the project ownership and the transfer of assets cause tax risks in the termination stage.In view of the tax risks identified,the whole life cycle tax risks recognition and response system of the A municipal refuse burning PPP item company is proposed.In the establishment stage,we should fully grasp the tax incentives,adopt a reasonable company structure and PPP specific mode,choose the best way of investment,bring in tax agency,and set up a special tax risks management department.In the construction stage,we should consider selecting the contractor,improving the supplier chain,perfecting the contract and bill management,and planning the tax deductible.In the operation stage,we should strengthen the reserve and training of the tax personnel,keep communication with the tax authorities,make clear the duty of tax payment.Recognizing the ownership of the assets and make clear the duty of paying taxes.