Analysis On Tax Risks Of Yunshang Real Estate Development Company

As a pillar industry of Chinese national economy,real estate industry involves dozens of upstream and downstream industries,including fiancé industry,construction industry,commerce and business etc.,and also several different kind of tax,including value-added tax,business income tax,individual income tax,deed tax,stamp tax,etc.As an important source of tax,real estate industry's tax-related aspects have always been a concern of tax supervision and monitoring.After the Transition from Business Tax to Value-Added Tax(VAT),the taxrelated environment of real estate corporations becomes increasingly complicated.Under this circumstance,dealing with the tax-related risks and making tax plan systematically has become a pressing issue for the real estate corporations.Established in 1997,Yunshang Real Estate Company is one of the earliest real estate corporations listing in the United States and engaging in the oversea markets,and has developed a comprehensive operating system that includes real estate development,property possession,and integrated marketing.That being said,Yunshang constitutes a representative and referential case to investigate the real estate corporations' tax-related risk and possible strategies.Given the long period of product development and complex operating process,all the different stages,including project initiation and land acquisition,construction,completed acceptance,advanced sale,sale,and tenure,generate respective tax responsibilities.Only through seeking out and coping with the potential risks of each and every stage one by one could a comprehensive and all-sided tax-related risk prevention system being developed.This article chooses Yunshang as object of analysis.It firstly illustrates Yunshang's background information,financial situation,and tax status,and then examines the tax-related cases of the value-added tax,business income tax,and land value-added tax that are involved in the five stages of Yunshang's operation,namely project initiation,project financing,cost accumulation,accounting of income and project liquidation.Finally,it depicts the tax-related problems of different operating stages of Yunshang,and provides specific suggestions for risk prevention and tax plan.-Regarding value-added tax,it focuses on the ways of getting land and rational usage of the VAT policies.Regarding business income tax,it emphasizes the way of business organization and tax plan specific on cost reduction.Regarding the land value-added tax,it addresses three issues in tax plan,namely taking advantages of the tax policies,choosing the right method of financing and accumulating the cost.At the meantime,this research summarizes that after VAT,the real estate corporations need to improve the professional skills of their financial staff,strengthen the management of invoice,enhance their communications and coordination with the revenue departments,build risk monitoring system,and formulate tax plan,in order to reduce their tax-related risks.Unfolding around the lens of the operating process of the corporation,this research takes the standpoint of the corporation's operation and management to offer a comprehensive analysis of their tax-related risks and tax plan.With a wide focus on several different tax,the suggestions this research offers contributes to the corporations' achievement of their longterm goals.Based on a case study of Yunshang real estate company,this thesis is expected to build on the theoretical discussions on tax risk prevention,and also contribute to the tax planning practices of the real estates corporations.