Talking about the Effective Ways of Tax Management in Construction Industry

Talking about the Effective Ways of Tax Management in Construction Industry

With the continuous development of the market economy and the gradual improvement of the investment environment, the construction industry and the real estate industry are in full swing. Especially in recent years, taxes on the construction industry and the real estate industry have increased by a large margin. However, due to the long construction cycle of construction projects, the complexity of construction enterprises, the uneven standardization of internal management, and the scattered flow of engineering projects, it is largely responsible for the subjective delays and tax evasion of taxpayers. Great convenience. How to strengthen the tax collection and management of Jian'an real estate industry is an important issue in the current local taxation department.

I. Analysis of the current status of the construction industry market

Driven by the interests, many taxpayers in the construction industry have tried their best to use the “daytime” of imperfect policy system and the “land advantage” of industry characteristics, plus the “personal harmony” between some construction units and construction units. The construction industry’s tax evasion and the non-standardization of the construction market “complement each other”.

Construction industry is seriously taxed

At present, the vast majority of the taxes owed by Jian'an enterprises are due to the lack of liquidity caused by the slow operation of the fund management and the recovery of the project funds, resulting in the inability of enterprises to pay taxes or invoices, and gradually form arrears. In addition, the law enforcement departments have not been able to monitor the construction units to the outside, so that they will leave the local area soon after the completion of the project, and some of the project funds will be invoiced in the field, and the tax owed will be difficult to recover, and even form a default.

Extensive tax collection and management mode, low efficiency

At present, the local taxation authorities have fewer administrative personnel, and the professional management is weak. The collection and management process has yet to be scientifically set up. The various collection units generally adopt the “vote management tax” method, and only stay on the supervision of the construction industry special invoices. The taxation department only collects the collection and management information from the tax returns and financial statements for taxpayers in the construction industry, and can only grasp the financial indicators such as income, cost, expenses, taxes, and capital flows as a whole, and the taxation status of the specific construction project of the taxpayer. How difficult to master accurately. Frequent occurrences of zero declaration, false declaration or even non-declaration have failed to grasp the complete and true taxation and financial situation of construction enterprises, which has caused difficulties in project tax monitoring, and the loss or lag of taxation is still very serious.

Individual construction units engage in extracorporeal circulation of funds, affecting tax monitoring

Due to fierce competition, it is not uncommon for the construction market to press the price and the black box operation. Some private economic construction enterprises, individual construction households, and unlicensed contractors who do not have the qualifications for construction or low level of construction qualifications undertake contracted construction projects, and have adopted different business methods such as subcontracting, subcontracting, naming, calling, and contracting operations. Affiliate to a company with high construction qualifications or borrow construction qualifications from it. After the construction company collects a certain amount of “management fee” from these construction teams and the team, it will let it go. It is difficult for local tax authorities to incorporate these construction teams into normal tax administration, which brings certain difficulties to the daily collection and supervision of taxes and disrupts the order of the construction market. Second, when the construction company and the construction unit settled the project price, some construction units used the material materials, vehicles, and real estate ownership to offset the part of the project price due to financial difficulties and other reasons. For the physical objects of this part of the top-of-the-line project price, the construction enterprises generally do not count the income and the corresponding accounts, forming a capital account cycle.

The construction market management mechanism is not perfect, and the comprehensive tax control is not strong.

Due to the lack of cooperation between the competent departments of construction enterprises, the taxation department and the construction, auditing, supervision and other departments lack the necessary coordination and coordination. Therefore, the situation of construction projects cannot be communicated in time, which brings many inconveniences to tax management. On the one hand, there is a blank point in the local taxation department during the bidding process. The bidding system for construction projects is a major feature of the construction industry. In the bidding process, the construction, planning commission, public security firefighting and other departments all participate in the qualification examination of the construction enterprise, and only those enterprises that meet the qualification requirements can participate in the bidding. The local taxation department does not participate in the bidding process, and cannot grasp the single project construction plan from the source. The tax return does not require the taxpayer to declare according to the individual project, making it difficult for the tax authorities to effectively control the taxpayer construction project. . On the other hand, the tax authorities have not established an entrusted agency relationship with the construction unit, and have failed to check the invoices obtained by the construction unit; they have not established an effective contact mechanism with the audit department, and cannot grasp the final construction cost of the completion project in time, and determine the final tax payable. Pay taxes.

Taxpayers have a weak tax awareness in accordance with the law

As a taxpayer, the construction company’s awareness of active tax payment is weak. The income of the project is as small as possible. The cash can be used to sit on the branch. If you can enter the small vault, it will never be recorded, or it will be linked to “advance receipts” or “others” for a long time. Payable on the account, but the company has not settled the income due to the unsettled project. Moreover, some construction companies do not charge tax deductions for subcontracting projects, only withdraw management fees, fabricate false accounting vouchers on financial accounting, and inflict project costs, resulting in failure to complete tax obligations.

Second, according to the characteristics of the industry, seeking reasonable countermeasures

Through the above analysis of the construction industry market and its related tax-related matters, the author believes that to strengthen the tax collection and management of the industry and regulate the taxation order of the industry, the following approaches are needed:

Increase the pertinence of tax law propaganda and form a social consensus on legally paying taxes

Effectively use modern news media such as television, radio, and internet to promote tax law and expand the influence. Pay attention to the tax law propaganda of the construction unit, especially the contractor of the project, and send the propaganda materials to the construction site, so that the contractor can know the law, understand the law, and abide by the law, form a consensus on conscious taxation, and reduce the tax evasion from the source. The professional staff will be trained to carry out training-style tax law propaganda for the financial personnel of the construction unit. To enable taxpayers to further clarify their respective rights and obligations, thus forming a good atmosphere of consciously paying taxes according to law and taxation of social taxation.

Adapt to the situation, change concepts, and innovate in management and management

For the collection and management of the construction industry business tax, the management system combining “project registration” and “vote management tax” is mainly used to solve the problem of tax collection and tax source supervision. After signing the project contract, the taxpayer of the construction industry shall go through the Tax Registration of the Construction and Installation Project and report the business tax according to the project. When filing a tax return, you must also hold a tax return, a list of completed projects and a tax registration for construction and installation projects, and the local tax authorities will register, verify and make tax records. At the same time, when the taxpayer is required to complete the settlement of the completed project, a special invoice for the construction industry must be issued; the construction unit must also use the construction industry-specific invoice as the settlement or payment certificate when settlement or payment of the construction cost. The special invoice for the construction industry shall be handed over to the competent tax authority for the implementation of the supervision and opening system. In this way, it has curbed the continuous occurrence of tax owed by taxpayers in the construction industry, and can also block the small-scale scattered construction units from using tax invoices to evade taxes, thus controlling the source of construction industry tax revenue.

Keep the source and cooperate closely to form a comprehensive taxation mechanism

In view of the characteristics of the construction industry, we follow the tax collection and management ideas of “departmental cooperation, source control” and strive to strengthen the coordination of relevant functional departments at all levels. On the basis of the current new tax collection and management model, it can actively use taxation and management informationization to establish information networking with functional departments such as industry and commerce, public security, construction bureaus and highways. If it is agreed with the construction management department, the information sharing of the city's construction and construction project bidding and contracting contract will be realized, and the auxiliary project registration management method will be implemented to effectively control the tax source; the general contractor will be seized and required to perform the withholding obligation. For major infrastructure projects, investors may be entrusted to collect taxes in accordance with the progress of the project, strengthen cooperation with the audit department, and deduct construction industry taxation in the auditing era. Realize the source of control. Form a departmental coordination, functional coordination, information sharing, effective control of the operating mechanism, timely grasp the construction industry tax source information, effectively strengthen the construction industry tax collection and management, promote the standardization of the construction market, and make the construction market into a healthy development track.

Setting up a specialized agency

For the taxation management of this special industry in the construction industry, it is more scientific and reasonable to adopt a special collection and management institution to implement industry management. In this way, it can avoid the taxation of a construction unit formed by administrative area management to multiple management units, which brings many troubles to the enterprise, thus effectively blocking the loopholes in the collection and management, reducing the occurrence of tax evasion, and achieving deep management. purpose.