On March 8, 2024, the Second Session of the 14th National People's Congress (NPC) held its second plenary session at the Great Hall of the People. At the meeting, Zhang Jun, president of the Supreme People's Court (SPC), made a report on the work of the SPC, and Ying Yong, procurator-general of the SPP, made a report on the work of the SPP. The reports of the two high courts reviewed the work of the judicial sector since 2023 in promoting the development of the private economy, investigating and handling tax-related cases, and deepening compliance reform, and deployed judicial work in 2024 to continuously optimize the rule of law environment for the development and growth of the private economy and to promote the construction of a national unified large market. Enterprises should pay attention to what points of the judicial work deployment of the two high committees in 2024, and what impact the two high committees' report will have on the judicial processing of tax-related cases this year, as analyzed in this article.

The revised "Company Law" has introduced new legal liabilities for shareholders, leading more shareholders to avoid legal risks through capital reduction, share transfers, company liquidation, and other means. However, this may also trigger a series of tax-related risks for shareholders. Moreover, the revision of the "Company Law" has sparked a lively discussion in society on issues such as corporate governance. Many companies have long-standing flaws in their business and financial operations, such as close or even commingled financial transactions between shareholders and the company, which also hide serious tax risks. In the new era of the Company Law, how shareholders can manage tax compliance in advance and properly guard against tax risks has become an inescapable topic. This article will combine actual cases to analyze how to help shareholders prevent tax risks through special tax consulting, tax health checks, self-examinations, and responses to tax audits.

Giving tax incentives to investing enterprises and financial incentives is a common way for local governments to attract investment, and this kind of financial and tax support policy effectively alleviates the pressure of capital turnover of some enterprises, reduces the operating costs of enterprises, stimulates the vitality of enterprise development, and then boosts the development of the regional economy. With the clean-up of illegal tax concessions in recent years, tax exemptions, tax rebates and other local tax incentives tightened, based on the autonomy of the local government of the tax revenue belonging to the local retention part of the enterprise to pay full taxes and then the local government to give the mode of financial return has become a part of the mainstream of the regional investment tax policy. However, in practice, some enterprises in the process of applying the policy of false opening, tax evasion and other issues, facing the risk of administrative and criminal liability. Since this year, audit, tax and other departments in the form of meetings or documents to clearly investigate the local investment promotion in the form of tax-related violations, and around the remedial action, investment promotion tax-related issues tend to tighten the regulatory situation. This article takes the recent trend of investment tax regulation as an entry point, analyzes the legitimacy of the financial return policy, and puts forward suggestions for compliance management of investment enterprises for readers' reference.

The revision of the new Company Law has triggered extensive discussions on corporate governance and shareholders' liability in the theoretical and practical circles, and the tax-related liability of individual shareholders has gradually attracted the attention of the society. For a long time, a large number of companies do not pay attention to tax-related risks due to irregular management system, and frequent fund transactions between companies and individual shareholders have occurred. With the continuous improvement of the Company Law and the Individual Income Tax Law, and the clarification of individual shareholders' responsibilities and tax liabilities, the past irregularities will gradually erupt into tax-related risks. Based on the research and practical case observation on the tax compliance of HNWIs and companies, this article provides tips on the tax risks of fund exchanges between individuals and companies for readers' reference.

On February 27, 2024, the State Administration of Taxation, the Ministry of Public Security, the Supreme People's Court, the Supreme People's Procuratorate, the People's Bank of China, the General Administration of Customs, the State Administration for Market Regulation, and the State Administration of Foreign Exchange held a meeting in Beijing to jointly combat tax-related crimes and crimes by eight departments across the country, summarizing the results of the joint crackdown on tax-related crimes in 2023 and studying and deploying key tasks in 2024。 This article interprets the conference in combination with relevant news, judges the main trends of tax-related supervision in the future, reveals the tax-related risks faced by key enterprises and industries, and puts forward compliance suggestions to prevent tax risks.

"Seven Tax Risks Brought by the Amendment to the Company Law for High Net Worth Shareholders (Part I)" elaborated on the main tax risks that high net worth individuals may face in the process of capital reduction, cancellation, non-monetary asset contribution, and equity transfer under the background of the Company Law revision. This article continues the main points of the previous part, systematically analyzing the tax risks that dissenting repurchase of shares, horizontal legal personality denial, nominee holding of shares restoration, and simplified cancellation system may bring to high net worth shareholders, for the benefit of the readers.

Prior to the implementation of the "two-invoice system", it was common for pharmaceutical companies to increase the number of trading links in the purchase and sale chain in order to increase the price of medicines and obtain sales rebates. In addition to pharmaceutical enterprises, many trading enterprises also take the first sale of goods to enterprises enjoying local policies, and then the enterprise's external sales in order to increase the performance of affiliated enterprises or enjoy financial rebates. In practice, many case-handling authorities on these intermediate increase in the purchase and sale of links hold a negative attitude, that may constitute false opening. In view of this, the author combined with a pharmaceutical enterprise to increase the purchase and sale of links accused of false opening of the acquitted case, the authenticity of the business, the return of funds and the determination of tax losses to be analyzed for the benefit of the readers.

On December 29, 2023, the Company Law underwent its sixth revision and is set to be officially implemented on July 1, 2024. Compared to the current regulations, the new Company Law mainly adjusts aspects such as corporate capital system, corporate organizational structure, distribution of rights and obligations among shareholders, and the establishment and exit mechanism of companies, while also clarifying the relevant responsibilities of shareholders. Against this backdrop, an increasing number of high net worth shareholders are choosing to proactively plan for capital reduction, transfer of equity to external parties, and company deregistration to cope with the potential legal liabilities that may arise after the new Company Law comes into effect. However, these actions entail considerable tax risks. Improper planning and insufficient attention to tax issues can easily lead to tax crises for shareholders. This article aims to analyze the tax risks that high net worth shareholders may face in behaviors such as capital reduction and deregistration, share transfer, non-monetary asset contribution, etc., under the backdrop of the new Company Law, in order to provide useful insights for investors.