TAX Planning Of VAT Of A Construction Company Under The Perspective Of Risk Management

The reform to replace the business tax with a value-added tax is one of the most important fiscal reforms in China.It will cast a great effect on tax burden,cash flow and investment.In the context of the overall economic slowdown,the whole industry is facing a rapid growth of cost under a more fierce competition.Enterprises are eager to lower down costs.However,risks are associated with tax planning which can be easily ignored.Basing on the principles of economy,it's easy to understand the necessity of tax planning.From the perspective of risk management,the thesis explained the contribution factors of tax planning risk as well as its characters,of which state the common characters of the construction industry and what has been effected by the new taxation system.Taking A Construction company as an example,the thesis proposes the VAT planning proposal including the reorganize the enterprise structure,fixed assets management and the supplier management to meet the needs of this company.Organizational restructuring is mainly aimed at the different needs of customers in different regions,different business models to choose the most conducive to the identity of the taxpayer.The management of fixed assets is mainly for enterprises "replacing business tax with value-added tax(VAT)before the purchase of fixed assets is not deductible input tax,using the fair price transfer mode of the overall management of assets inside,make each VAT payable to reach the minimum.Supplier management including supplier and subcontractor management,through the tax separation principle selection can help companies achieve the lowest cost supplier.The proposals will help reduce the cost.Using risk management theory to control the risk of the proposal.The ex ante analysis determines whether the company should do tax planning from the perspective of risk preference,former tax records and credit rates.Assessment of events will analyze the tax planning proposal from both financial indicators and non-financial indicators.The financial index will evaluate the economic well being.As for the non-financial index for the company reputation.A postmortem help the company assess the whole tax planning proposal for decision.