Research On Tax Risk Management Of Real Estate Group

With the continuous rising of residence price in recent years, the real estate industry is always the hottest industry of the society. As pillar industry of China, real estate industry contributes more than one third of the total taxation of many cities. The industry has become one bears heaviest taxation burden and involves the most variety of taxes. Therefore real estate industry enterprise has strong desire to improve its taxation risk management level. However, most of them lack the instructions on relevant methods and theory.In2009, State Taxation Administration published Instruction on Taxation Risk Management for Large Enterprises which gives constructive suggestions on this subject in primary level, while not in a profound and practical level.This article based on analyzing the taxation risk management for real estate group company by comprehensive risk management theory and frame, aiming at maximizing the benefit for the whole group company. It uses Suzhou A Group Company’s case to do case study and theoretical study.There are total6chapters, the main contents are as follows,Chapter1, Introduction which consists of4sections, section1the background for this topic, section2raise the question, section3articulates the purpose and significance of the study, section4articulates the study methodology.Chapter2, the conspectus of taxation risk, articulate the basic theory of risk and taxation risk, categorizes the common taxation risk for real estate companies and analysis the reason for why various taxation risks happening.Chapter3articulates how to use comprehensive risk management theory to tackle the taxation management problems based on its origin. Explains how to apply three dimension system of comprehensive risk management to manage taxation risks, extract the key elements of taxation risks.Chapter4According to the taxation management elements extracted, further construct dynamic frame for taxation risk management. Summarize the general steps for taxation risk management refers to ISO31000risk management procedures. On this basis, more profound study was done on risk identification, risk appraisal and risk management strategy of taxation risk management.Chapter5is the combination of theory and actual practices, it uses Suzhou A Group Company’s taxation risk management system as a case to analyze its pros and cons. Relevant suggestions were raised on how to improve Suzhou A Group Company’s taxation risk management system.Chapter6conclusion, based on the above mentioned study and analysis, it can be concluded that all taxation risks can be prevented by Seven Step Methods, and more food for thoughts on this subject were raised by the end of this article.