Research On Tax Planning Of LZ Power Generation Company

After the monopoly of the power industry was broken,competition within the industry intensified.Since the Chinese government has always held the power to control the power industry,it’s difficult for power companies to maintain competitiveness simply by raising prices.If power companies want to develop in this environment,they must focus on how to reduce costs,and tax planning has become one of the best choices.However,due to the short development history of tax planning in our country,tax planning research for power companies is even scarce.Therefore,this paper takes LZ Power Generation Company as the research object and uses literature research,case analysis and comparative analysis to illustrate the company’s types of taxes and fees involved and their payment status.Design a tax planning plan for the high-tax value-added tax,corporate income tax,housing and land tax and expenses,and propose corresponding countermeasures according to the possible risks in the planning.The main contents of this paper are as follows:(1)Explain and comment on the domestic and foreign research status from three aspects:the definition of tax planning,the methods of tax planning,and the risks and prevention of tax planning.(2)Introduce the concept of tax planning and elaborate the four theoretical foundations that support the writing of this paper.(3)Through a brief analysis of the operating and financial status of LZ Power Generation Company,combined with the applicable tax rates and taxation status of various taxes and fees of the enterprise,the reasons for the increase and decrease are analyzed one by one.The results show that the tax burden of enterprises is too heavy and tax planning needs to be carried out in a timely manner.(4)According to the actual payment status of the key taxes and fees of the enterprise,combined with the daily operation of the enterprise,tax planning shall be carried out from multiple aspects and perspectives such as value-added tax,corporate income tax,two taxes for housing and land and fees.By comparing the tax-saving effects of different planning schemes with the original scheme,choose the planning scheme that is most suitable for the development of the enterprise,and clearly show the results of the planning.(5)According to the planning results,elaborate the three types of risks that the enterprise may generate in the tax planning process,and propose specific preventive measures in a targeted manner.Through the above research,the following conclusions are drawn:(1)There are nearly 20 types of taxes and fees paid by LZ Power Generation Company,and a total of about 200 million yuan in taxes and fees have been paid in 2020.Compared with other companies in the same industry,its tax burden is heavier and there is more opportunities for planning.In addition,various preferential policies,accounting policies and the support of tax authorities have increased the feasibility of tax planning.(2)Tax planning for LZ Power Generation Company can produce good tax-saving effects.For example,for value-added tax,planning from the two aspects of changing the procurement material supplier and changing the transportation method can save 310.93 thousand yuan in tax;for corporate income tax,from expanding the pre-tax deduction items,changing the fixed asset depreciation method,changing the inventory valuation method,Using the four aspects of preferential taxation policies to plan,tax savings of 3.37542 million yuan;for property tax and land use tax,planning based on the definition of real estate tax and the preferential policies for corporate housing use and land use tax,resulting in a total tax savings of 2.3469 million yuan;The expenses are planned from three aspects: reaching the employment ratio of persons with disabilities,restructuring the income structure of employees,and changing the insurance status,which can save tax of 810.84 thousand yuan.Through the above methods,the company can reduce the tax burden of 6.84409 million yuan in 2020,3.40% of the company’s total taxes.(3)In the process of tax planning,the company has risks of changes in tax policies,and the two parties have identified different risks and internal management risks.These risks need to be strengthened to provide protection for the periodic goals of reducing costs and increasing efficiency in financial management.