Research On Tax Risk Management Of Construction Enterprises

With the increase of tax-related issues and the exposure of tax cases,the importance of tax risk management has become increasingly prominent.For construction companies,tax risk management is even more important.As the pillar and leader of economic development,the construction industry is deeply concerned by tax authorities.The industry itself has the characteristics of large capital,long construction period,many related parties and complicated management,which complicates the taxation of construction enterprises and has high tax risks.In recent years,China’s economy has entered a new normal,and the transformation and upgrading of construction enterprises is grim and the risks are greatly increased.Reform measures such as “camp reform” and “Internet + taxation” have made major changes to the tax-related matters of construction companies,especially tax risks.Under the influence of internal and external factors,if construction companies do not strengthen tax risk management,they will suffer serious losses due to the outbreak of tax risks.Doing a good job in tax risk management has become an inevitable choice for construction companies to avoid disadvantages,adapt to trends,and develop continuously.With the continuous development of the market economy,China’s enterprises have become one of the main sources of financial revenue.According to data released by the state administration of taxation,the majority of tax revenue in China comes from 2% of large enterprise taxpayers.As material production units,construction enterprises are closely related to the national economy and people’s livelihood.Moreover,large construction enterprises have complex organizational structure,low tax management level and wide project coverage.Therefore,tax risks are very likely to occur in the development process.Tax authorities attach great importance to the risk management and governance structure of highly centralized large enterprises,and will give relevant guidance to taxpayers’ self-management in order to reduce compliance risks.The VAT for the construction industry has changed since May 1,2016.From the perspective of long-term analysis,this change is bound to have a world-shaking impact on the development of the industry: enterprise invoice standardized management is bound to make enterprise internal management gradually stable;Therefore,if an enterprise can still develop steadily in the changing market environment,it must pay great attention to its internal management ability,risk warning and standardized financial accounting.This paper will take the tax risk management of construction enterprises as the research object.Using literature review method to summarize the tax risk management theory;investigating and analyzing the case enterprises;analyzing the tax risk situation and risk management defects of the case enterprises by inductive deduction method.In the case study part of this paper,firstly,it introduces the overall situation,development and tax situation of the case enterprise,analyzes the tax situation and tax risk management situation of the case enterprise in recent years,and summarizes the existing problems in tax risk management according to the performance of tax risk management of the case enterprise.Finally,according to the guidelines of enterprise tax risk management issued by the State Administration of Taxation,based on the research of M enterprise,the paper gives the specific countermeasures from the aspects of tax risk management objectives,tax risk identification and evaluation,tax risk control and response,information communication,supervision and improvement,and constructs the tax management system of construction enterprise.So as to help the construction enterprises to find and improve the current tax risk management problems,so as to better promote the stable and healthy development of construction enterprises.