Tax evasion creates real estate windfall, Xinhua research Report

Reporter recently in the interview learned that some developers to use local investment to attract various concessions, as well as real estate projects long span, links, costing complex characteristics, to do everything possible tax evasion.　　The experts suggest that increasing the tax levy of real estate enterprises and breaking the property of profiteering in real estate industry can not only recover the loss of tax revenue, but also promote the healthy and rational development of the industry. Hoarding land to raise the cost of low profits high in Inner Mongolia Baotou a real estate developers told reporters that the real estate industry in recent years attracted a large number of social capital to enter, and real estate project profiteering has a great relationship.　　By hoarding land, driving up prices and evading taxes, the real estate industry is far more profitable than any other industry. "2002 ago I engaged in the logistics industry, a year to earn 3 million to 4 million yuan is good, the profit is only about 7%." Later, the processing industry, the profit reached 20%. Now engaged in real estate, 3 years ago a project invested 200 million yuan, 3 years after the elimination of the cost of net earn 200 million. The real estate, do not want to engage in other industries.　　"The developer said. "The real estate enterprise profit source has three aspects, one is to hoard the land, two is to raise the house price, third is the tax avoidance." Among them the tax evasion way is more, therefore the land price and the house price rise part almost all become the enterprise profit. "The developer said," according to regulations, a project from the land to build a house in 3 years time, to pay nearly 2% of the value added tax, but by coordinating with the tax authorities, land value-added tax can generally be exempted. Some large domestic companies tend to hoard thousands of acres of land, after a few years to sell small developers, an acre of land to earn seven hundred thousand or eight hundred thousand yuan difference, this part of the profit can almost avoid tax. "In terms of raising prices, the higher the price rises, the higher the developer's profit and the weaker the tax levy." For example, housing sales now Levy 16 5% of the income tax, 2009 prices almost all over 50%, urban center housing prices have largely quadrupled. The previous unit price sold 10,000 Yuan House, pay the income tax 1650 yuan, gross profit is 8350 yuan; now the house price rises to 20,000 yuan, pay the income tax 3300 yuan, the gross profit is 16700 yuan. Although taxes have doubled after house prices rose, profits have increased more. This is the developers of a large number of hoarding to cover the cause. "The developer said," from the cost of hoarding cover, the longer the project development costs, but the real estate development of all aspects can be outsourced, real estate companies do not need to raise the number of people at ordinary times. Now even the West is very small developers, on hand there are billions of working capital, hoarding the cost of covering the plate is nothing. "Do high cost delay settlement tax evasion pattern more than Huatai Securities senior researcher Zhang Lifei, in 2009, the real estate listed companies average gross profit of 29%, net profit less than 20%, from the profit situation, and no higher than other industries."　　But through a variety of means to avoid tax evasion, profit promotion space is huge. It is understood that the Jiangsu Taxation Bureau in 2009 investigated the real estate enterprises involved in tax cases, the list of the top tenThe amount of corporate tax is as high as 110 million yuan, the largest corporate tax evasion of more than 25 million yuan. Professor Shing, director of the Institute of Finance and Taxation of Nanjing Auditing Institute, director of the China Finance Institute, said that the real estate industry tax loopholes is a fact, according to a certain tax department, there are 90% developers have tax problems, some local actual levy and the amount of the application is a big gap between. He introduced that the real estate project tax mainly has two big blocks: one is 5 5% business tax, and the second is 33% enterprise income tax. And developers can through a variety of methods to avoid tax evasion: first, the use of housing pre-sale income definition inaccurate tax avoidance. The pre-sale income relates to the business tax how much, our country tax calculates the pre-sale income link, the central and the local stipulation exists disjointed. Developers in the summary of pre-sale income, only the calculation of buyers pay a deposit, the first payment will be excluded from the tax range, so that the company's pre-sale income reduction. Some developers wait until the house is basically sold, quickly put home buyers to pay for bank loans. and the relevant tax law stipulates that the bank loans can not be counted into sales income, so do not pay taxes.　　Developers in the "one loan one also", evade the business tax. Ii. the method of calculating taxable income is flawed. The income tax is the biggest tax which the real estate project needs to pay, also is the biggest black hole of tax avoidance. A number of local government rent departments, "after the relevant departments acceptance", the project is completed. Therefore, the project final accounts of real estate enterprises to wait until the whole project through acceptance can be carried out.　　Because a project needs construction Commission, Civil Air defense, fire, pipe, technical supervision, water supply and other 10 departments issued acceptance report after the completion of the long acceptance process for developers to provide tax evasion convenience, some manufacturers use rolling development projects, intentionally or unintentionally to the project final account period postponed. In the rolling development, the developer will put the money in the previous project into the next project, so that its cost can not be liquidated, the final form of enterprise income tax taxable part is difficult to determine.　　Some developers at the end of the housing project, reinvest in the construction of commercial projects, the residential part of all the profits into commercial projects, to avoid paying large income tax. Third, the project sales link to pay income tax, many developers to take "tow" approach. The most common modus operandi is to leave a few homes in one project out of the market and the project cannot be settled. Some developers pay in advance of enterprise income tax, a drag for several years, resulting in tax black hole.　　This approach is also used in the liquidation of land value-added tax. The tax department and the land and planning departments lack effective cooperation.　　At present, the real estate enterprise levy of land value-added tax in the actual collection and management of effective methods, should be "stipulated pre rate" pre, the final accounts of the project should be the land value-added tax liquidation, but in practice, the real estate enterprises can be liquidated. Local investment "convenient" housing enterprises tax evasion experts believe that developers of the phenomenon of fraud is widespread, and local sources of the dispute has a close relationship. Some big developers are often local investment projects, usually enjoy preferential tax policies. On the one hand, the tax departmentTo complete the tax task, on the other hand fear of unhappiness with investors. Therefore, some of the requirements of developers, the local government and the tax authorities can often be convenient to operate. In view of the loopholes in the real estate tax policy, experts suggest: first, the relevant government departments to speed up the establishment of real estate tax control system, the existing policy is not clear, the implementation of a unified policy as soon as possible.　　At the same time, strengthen the tax, industry and commerce, land, planning, construction, finance and other departments of information exchange and sharing, to maximize the relevant tax information, so should be collected and collected.　　The second is to break the property of real estate profiteering industry, can consider the rise in prices too fast areas to set new taxes. Third, in the field of real estate development, we should standardize and curb the "tax source dispute", "financial return" and "fiscal overdue" of local government, and treat it as "receivable", and intensify the crackdown on real estate tax evasion. (Xinhua research Team)