Research On Tax Risk Management Of A Construction Company

With the increase of tax issues and the exposure of tax cases,tax risk management becomes more and more important.For construction companies,tax risk management is critical.As the pillar and leader of economic development,construction industry has been deeply concerned by the tax authorities.Since construction industry has such characteristics as large amount of investment,great number of upstream and downstream enterprises,long production cycle and complex management,there are many tax risks in construction enterprises.In recent years,construction enterprises enter into the period of transformation and upgrading,facing more risks and challenges.Reform measures,such as the tax reform “replace the business tax with value-added tax” and the action plan“Internet plus tax”,have made tax risks of construction enterprises become especially prominent.Under the influence of internal and external factors,construction enterprises are prone to suffer serious losses due to tax risk outbreaks.Thus,tax risk management is an inevitable choice for construction enterprises to avoid disadvantages,adapt to the new trend and achieve sustainable development.Although the current literature about tax risk management is abundant,there are few case-based studies,few studies on tax risk management of small and medium-sized enterprises,and less studies on a specific construction enterprise.So this paper takes A construction company as an example to study the tax risk management of construction enterprises which includes two parts:The first part is case introduction,which illustrates the general situation of the construction industry and the basic information of A construction company.A company is a medium-sized construction company whose tax risk management problems are common.The second part is case analysis.The first chapter is the introduction,which introduces the background and significance,summarizes the research status of tax risk management,and illustrates the content and method of this study.The second chapter is the theoretical basis,which elaborates the related concepts and theories of tax risk management,and explains the development,content and procedure of tax risk management.The third chapter is the tax risk analysis,which identifies the tax risks that exist in the old and new projects,subcontracting,supplier management,accounting and other daily activities,according to the provisions of value-added tax as well as the actual business process from four aspects,such as invoice management,contract management,financial accounting and other aspects,by comparative analysis and ratio analysis.Then,it analyzes both the internal and external causes of tax risks;The fourth chapter is the suggestion,including enhancing awareness,strengthening invoice management,contract management and financial accounting,establishing the tax risk management system.Finally,it makes the conclusion,hoping to help A company to improve its tax risk management,meanwhile,provide reference for similar enterprises when they need to carry out tax risk management.