Research On Tax Compliance Of Telecom Enterprises

Recently,the effective implementation of policies such as “speeding up broadband and bringing down Internet rate” and “cutting taxes and fees”,has brought greater uncertainty to telecommunications companies and posed a more serious challenge to their production,operation and management.To maintain a stable and healthy development,the companies have gradually shifted their focus to the compliance.With this year being the first year of China’s Fourteenth Five-Year Plan,the Outline specifies requirements for further improvement of modern taxation system and long-term continuous tax adjustments.This leads to not only increasing necessity for company’s tax compliance,but also growing tax-involved risks to some degree.In the era of big data,Company H,a “Qianhu Group”—one of the 1062 large enterprises selected by State Taxation Administration,faces stronger all-round supervision,which represents higher requirements for company’s tax compliance.Under the circumstances,the company should resort to researches on tax compliance to deal with effects brought by frequently changing taxation environment,so as to reduce costs,enhance economic benefits and achieve high-quality development.Through literature research,the author turns to scholars at home and abroad for their theoretical analyses and research experience on tax compliance for reference.This paper takes Company H as an example and explores the application principle of company’s tax compliance in real-life cases.Firstly,the paper proceeds from business operation compliance to define tax compliance precisely.It is followed by Company H’s overall condition,tax management functions and recent tax position and analyzes related data,which points to problems and imperfection in aspects such as means to calculate income taxes and the efficiency in writing off costs.Then,it digs deeper in problems related to value-added tax in the company’s production and operation processes and proposes possible solutions to the aforementioned problems from the perspectives of business adjustments and internal control of tax.At last,taking Company H’s current situation into consideration,the thesis makes suggestions on safeguard measures.Combined with the competitive environment and existing problems in telecommunications industry,this paper analyzes Company H’s value-added tax-related businesses and key tax-related risks in order to optimize business process and scenario and propose possible solutions to problems in value-added tax compliance in its business and internal control.In terms of business,the company can optimize the business mode of fixed network terminals,regulate the proportion in telecom pricing package,simulate different ICT business scenarios to satisfy customers’ various needs and detail charges for installation and transfer of broadband.As for internal control,suggestions such as increasing the number of customers who get their electricity bills,arranging internal transactions reasonably and making full use of extra tax deduction policies are proposed to enhance its effectiveness.When it comes to implementation safeguard measures,the company should take measures such as paying close attention to change in government polies and regulations,improving working mechanism,strengthening personnel training and improving its communication with tax authorities.If the three of them are combined,the company can reduce uncertainty brought by changes in taxation environment,which helps it achieve the goals of easing tax burden,dealing with risks in tax compliance and increasing returns,thus promoting the continuous high-quality development of the company.