The Research On Tax Risk Management Of Small Construction Enterprises Under The Background Of The Tax System And The Reform Of Taxation

For several years,the real estate industry has been the pillar industry in China,the construction industry is one of the industries which is highly associated with the real estate industry also made a significant contribution to China's social and economic development.Although small construction enterprises are in a weak position in the industry,because of their great quantities,a large number of projects involved,and the high output value,the importance of them cannot be ignored compared with large and medium-sized construction enterprises.The notification of the General Office of the Ministry of Housing and Urban-Rural Construction on Supporting the Development of Private Construction Enterprises the Chinese government promulgated on January 30,2019 pointed out that we should carry out the special clean-up of the construction market supervision documents,promote the construction of a unified construction market system,optimize the competitive environment for bidding,promote the substitution of bank guarantee for deposit,strengthen the construction of credit evaluation system,and provide as many communication channels for private construction enterprises as possible etc.aimed to promote the sustainable and healthy development of private construction enterprises.The vast majority of small-scale construction enterprises are private enterprises.The Ministry of Housing and Urban-Rural Construction attaches great importance to supporting the development of private construction enterprises.This is undoubtedly extremely positive news for small-scale construction enterprises,providing strong support for the future development of small-scale construction enterprises.In recent years,the national laws and regulations on taxation have been mending and perfecting perpetually.Since January 1,2012,the State Administration of Taxation has started to replace business tax with value-added tax(VAT)on a trial basis in transportation and some modern service sectors in Shanghai,and then China has been in the full implementation since May 1,2016.In 2018,China's state tax bureau and local tax bureau was unitized and the Third Golden Tax Project and Revenue Management System have achieved full coverage,deeply developing the action of Internet and tax administration.According to the article 46 of the Bill of Reform Program of the Party and National Institutions passed on 28 th,February,2018,in order to improve the efficiency of social insurance funds collection and management,the social insurance premiums for basic old-age insurance,basic medical insurance,unemployment insurance and other social insurance premiums were collected by the tax department.On August 31,2018,the 13 th Standing Committee of the National People's Congress voted to adopt a decision on amending the personal income tax law at the fifth meeting,including raising the amount of tax exemption to 5,000 yuan per month and adding six special tax deduction items.The 13 th Standing Committee of the National People's Congress declared that 116 draft laws would be included in the plan within five years,including 11 tax laws about the real estate tax law.And the VAT legislation would further degenerate the tax rate grade and reduce tax rate.Various kinds of small taxes such as resource tax and environmental protection tax are being carried out in the reform.In such a comprehensive and deepening tax reform,it is imperative to further strengthen enterprise tax risk management.On account of weak corporate strength,incomplete management system,indifferent tax risk awareness,and poor risk-resistance,it is urgent to establish a perfect tax risk management system for the Small construction enterprises facing the great changes brought by the reform in taxation system and mode of tax collection administration.Firstly,this paper analyses the reform in taxation system and mode of tax collection administration,such as “replacing the business tax with value-added tax”,"consolidation of state and local tax institutions","individual tax reform",and "the transformation of social security" and so on.At the same time,it combs the domestic and foreign tax risk management theories;Secondly,starting from the necessity of the existence and development of small construction enterprises,the paper analyses the survival and development predicament of small construction enterprises,especially the situation and reasons of the financial and tax difficulties,it expounds the great changes to the tax risk management of small-scale construction enterprises brought by the reform in the tax system and the mode of tax collection,by the way it explores a way to manage the small construction enterprises in a more transparent and stringent tax collection management environment and discusses about how small construction enterprises strengthen internal control management,information construction,personnel training of tax risk management,and optimize the cooperation system with the outside world in detail.Finally,the article analyses the difficulties of tax risk management faced by small construction enterprises under the background of the reform in tax system and tax collection and management in detail.Corresponding measures are taken from tax burden,operation and management,financial management,information management and other aspects and put forward reasonable and compliant tax risk management suggestions so as to improve the competitive and adaptive ability of small construction enterprises.