Research On Tax Risk And Prevention Of Real Estate Companies In China

As a pillar industry of the national economy,the real estate industry has also shouldered a heavy tax burden while achieving high profits.Its tax revenue is an important source of income for tax authorities everywhere.The housing problems involved in commercial housing are closely related to the masses and involve the interests of thousands of families.The development of real estate companies is not only related to themselves,but also to the interests of the majority of residents and the country.In recent years,in order to effectively integrate inefficient urban space resources,build more public facilities and public spaces,improve the living environment,and enhance the city's vitality,major cities have actively explored urban renewal.The China Index Academy report shows that the demand for urban residential demolition and relocation in China between 2016 and 2020 will reach 34.4% of the total housing demand.Urban renewal projects in major cities have emerged in an endless stream,becoming a new growth point for urban development.Major real estate companies have seized investment opportunities in urban renewal projects.While the real estate industry has made significant contributions to the national economy and national tax revenue,the urban renewal project has many characteristics such as huge investment volume,long cycle,variable policy,difficult negotiation and frequent breach of contract.This brings various risks to the real estate enterprise,and tax risks are hidden in all aspects of urban renewal.On May 1,2016,China launched a comprehensive reform.The real estate company was changed from the business tax to the value-added tax.The corporate income tax and land appreciation tax accounting in the top three tax categories of real estate companies are complicated.In addition,the tax authorities' taxation supervision of real estate companies is increasingly standardized and strict,and the uncertainty of the tax environment they face is increasing,and the tax risks are increasing.Nowadays,the real estate industry faces high-pressure policies such as “restricted purchase” and “limited loans”.The debt is due,the financing is difficult,and the property market is tightening.The three mountains are on the real estate enterprises.Taxation is a huge cost for real estate companies,and tax risks are likely to affect the sustainable operation of enterprises.The tax risk management of real estate enterprises has become a hot spot in the tax collection and management work.The taxation department has extensively discussed the management path of real estate enterprises' tax risks,and has achieved initial results.Real estate companies that are the recipients of tax risks can no longer stay out of the way,and the prevention of tax risks is imminent.How to formulate targeted prevention and control measures in daily production and operation,so as to minimize the possible tax risks of real estate enterprises,has become an urgent problem to be solved.Based on the three theories of risk management theory,tax compliance theory and the game theory,this paper takes the case of urban renewal project of Z Shenzhen branch of Group A with comprehensive strength in the forefront of China's real estate industry as the starting point,and analyze the business level to the financial level to the tax level from the four aspects of non-property owners' demolition compensation fees,“missing labor costs”,interest expense,and underground parking spaces,exploring the reasons for a business' s transformation into potential tax risks and its possible consequences,and then propose the above-mentioned tax risk's prevention strategy: Real estate enterprises must strengthen self-management of tax risks from six aspects,and the improvement of external tax legislation and law enforcement environment is more conducive to changing the uncertainty of urban renewal tax issues,creating the good tax environment for real estate companies to carry out urban renewal business.Based on this,real estate companies can effectively reduce corporate tax risks and avoid falling into the dilemma of tax violations and overpayment of taxes.