Research On Tax Risk Management Of W Construction Enterprises After Replacing Business Tax With Value-added Tax

In May 2016,four sectors-property,construction,finance and consumer services were brought into the category of value-added tax,or VAT,and the program of replacing business tax with VAT was implemented throughout the country.Full implementation of replacing business tax with VAT is an important part of deepening the reform of China’s fiscal and taxation system.It is also an important measure to reduce the tax burden of enterprises,adjust the national economic structure,optimize the tax system,and the supply-side structural reform.As a pillar industry of national economy,the program of replacing business tax with VAT is conducive to the integration of the construction industry and the upstream and downstream industries,and promotes the standardization and healthy development of the industry.It is an opportunity for construction enterprises to achieve transformation and upgrading and seek rapid development.However,opportunities and challenges often coexist,and the program of replacing business tax with VAT also puts forward new requirements for construction enterprises in many aspects,such as management mode,financial accounting,tax management,etc.Construction enterprises will face more and greater tax risks.It requires construction enterprises to change their management,raise their awareness of tax risk,strengthen tax risk management,select appropriate tax risk response means according to the actual situation of enterprises,reduce tax risk,and achieve stable and healthy development of enterprises.In this paper,methods of literature research,field research,case analysis,comparative research,and a combination of qualitative and quantitative research are adopted to introduce the impact of the program on construction enterprises and the tax risk.I select construction company W as a case in my paper,through collecting and collating the data,tax-related situation and management problems of company W,analyze the tax risk and risk management problems,and put forward the corresponding countermeasures.Enterprise tax risk management is a long-term and comprehensive problem,which requires enterprises to enhance tax risk awareness and strengthen tax risk management.Although the tax risk of construction enterprises will rise after replacing business tax with VAT,it could also be controlled and reduced.The ultimate goal of the state’s tax reform is to lighten the burden of enterprises and support their development.This paper analyzes the tax risks faced by construction company W from the theoretical and practical levels,and puts forward reasonable suggestions,hoping to provide help for all construction enterprises to cope with tax risks and build a scientific management system.