The Application Of XBRL In Tax Reporting

XBRL(eXtensible Business Reporting Language) based on XML, it is a markup language which can convert commercial report to be the computer readable information. It is used to define and exchange of financial and business data, and can realize the business data standardization, information representation. The information providers and users can get benefits from the data preparation, analysis and interaction benefits by using XBRL technology. Therefore, since it was proposed by CPA Hoffman from 1998, XBRL technology has been rapidly popularized and applied widely in the financial reporting and tax regulation at home and abroad. For example, USA has released the tax classification standards for enterprise income tax declaration of XBRL in 2003; the Ministry of Finance in our country since 2010 started submitting the project of general classification standard based on XBRL; XBRL would be the sole legitimate format declaration of the Holland enterprise income tax; the Irish Tax Bureau has enforced to promote the XBRL reporting in 2013 and so on.However, the application of XBRL technology in the field of tax regulation in our country is still a blank. Therefore, under this background, the author tries to discuss how to apply XBRL technology in the China’s tax reporting and analyze for its applicability. From the necessity of point of view, XBRL technology can resolve the problem from the separation of financial accounting and tax accounting system, and the regulatory contradiction of State Taxation Bureau and Local Taxation Bureau, strengthening tax report readability and comparability, reducing the cost of tax declaration and improving the quality of reporting of information supply. From the practical point, China’s XBRL classification standard based on accounting standards has been issued. The project of XBRL technology application in the financial report listing in the overall promotion arrangement of the Ministry of Finance and other nine ministries has made some achievements, at the same time, the western countries also early apply the XBRL in tax reporting, and get some valuable experiences.Therefore, the application of XBRL technology in our country tax supervision field is one of the worth studying projects. I firmly believe and launch the analysis by this paper. This article begins from the technical characteristics of XBRL and the problems of current tax reporting mode and learn from the application of XBRL in the field of tax reporting project experience in western countries and the implementation achievement of XBRL in China’s financial reporting project. We try to design and construct our country’s XBRL tax reporting model and discuss the project promotion process and put forward the measures of project implementation difficulties and obstacles may be confronted in the process in order to provide the theory support or advices for how to construct our country’s tax reporting project which based on XBRL.