Research On Improving Real Estate Enterprises’ Land Appreciation Tax Management And Risk Prevention And Control

With the once-again booming of real estate market,and the increasing pressure on revenue task of land tax bureaus after the issuance of the policy “replacing business tax with value-added tax”,land appreciation tax will become the stock tax fund that various tax authorities will set priority on.Besides,due to the haste in implementing land appreciation tax,the imperfect tax system design,the uncertain tax elements,and complex taxation methods as a whole,make real estate enterprises unable to handle comprehensively the management on land appreciation taxation;while these drawbacks in management tend to become the tax-involved risks of the enterprises.Therefore,real estate enterprises should pay great attention to land appreciation tax management and risk prevention and control,including the daily management and taxation planning,so as to enhance their capabilities in handing the uncertainties existing in land appreciation taxation practice and in resolving tax-involved risks.This paper aims to explore real estate enterprises’ strategy in dealing with land appreciation tax-involved risks,conducts research on land appreciation tax management,and seeks the ways to help enterprises enhance their related managerial ability and risk-response capabilities,for the purpose of finding the methods to resolve land appreciation tax-involved risk and perfect their management so as to enhance the enterprises’ high-speed and healthy development.Based on a literature review on land appreciation tax at home and abroad,and in combination with the background,basic system,taxation methods and planning theory of China’s land appreciation tax,the author analyzes the practical programs of land appreciation tax in daily management,project liquidation and other tax practices,and points out the defects existing in land appreciation tax itself,as well as the management issues and risks faced by real estate enterprises.Then,by means of case study,the paper selects a real estate enterprise to study its land appreciation tax management.By combining theories with practice,the paper discusses how to enhance land appreciation tax management,and puts forward the methods for real estate enterprises to improve their abilities in land appreciation tax management and risk control and prevention.This paper consists of seven parts.Chapter I mainly introduces the background,significance,contents,methods,framework and main logical line of the paper,as well as its characteristics and innovations.Chapter II is the literature review.Through a study of domestic and foreign literatures,the paper reviews large amount of research data concerning land appreciation tax,so as to lay a solid theoretical foundation for following research and innovation.Chapter III mainly introduces the background and basic system of China’s land appreciation taxation,and points out the setbacks existing in the land appreciation tax,as well as the loopholes caused by its system and taxation methods,to help locate the accurate study angles for enhancing land appreciation tax management and risk control in the next step.Chapter IV conducts an analysis of the problems faced by real estate enterprises in taxation practice,especially in land appreciation tax liquidation,to illustrate the sensitive points in policy,and point out the risks brought about by imperfect and inappropriate management in the taxation practice.Chapter V proposes recommendations for improving the management of land appreciation tax in real estate enterprises,including enhancing daily management,fully exerting the role of taxation professionals,and conducting risk prevention and taxation planning according to different circumstances,to provide feasible methods and recommendations for perfecting land appreciation tax management and risk control.Chapter VI carries out a case study on an enterprise which successfully avoided excessively paying tax worth hundred of thousand of yuan in response to tax authority’s reduction to cost in land appreciation tax liquidation.By summarizing the success experience,the paper further proves the feasibility and importance of enhancing land appreciation tax management and risk control proposed in Chapter V.Chapter VII draws a conclusion,to propose advices on how to help the enterprises to reduce taxation const and control the risks,while offering recommendations on optimizing the land appreciation tax policy.The author believes that the land appreciation tax is a tax type which features blank and unreasonableness in design,unclearness in element and weakness in operability.The uniqueness of land appreciation tax leaves a large blank and flexible space for tax authority in tax policy implementation,which is both a risk and taxation planning points for the taxation of real estate enterprises.Given the factual situation that the tax is not to be abolished in a relatively long period of time,the enterprises should pay high degree of attention to the management and risk control issues,grasp the features of this tax type,show concern on tax system research,taxation reform,internal management and taxation planning,etc,seek methods to perfect the tax management,and strike a balance between corporate economic profit management and tax-involved risk reduction,so as to forge the unity of their own interest and social benefits.