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Can a transferee's withholding tax be refunded in the event of a contractual fraud in connection with an equity acquisition?
1597Views
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Whether the tax authorities can still pursue administrative liability after a petrochemical enterprise is held criminally liable for overbilling
1768Views
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The Risk and Dispute Solution of Tax Planning of Individual Shareholder's Equity Change before Company Going Public
In order to raise capital and further expand its development through listing in the capital market, a proposed listed company needs to adjust its shareholding structure in accordance with the listing program, and especially for limited liability companies, it also needs to carry out share restructuring. With the full promotion of the registration system across the market and among all types of public share issuance, the listing conditions have become more diversified and inclusive, but issuers still need to ensure that they are in compliance with the issuance conditions, the listing conditions and the relevant disclosure requirements, and to respond to the regulator's inquiries around the qualifications of the main body, the history, the competition in the same industry, the related transactions, and the tax risks. In particular, the tax risk of changes in the shareholdings of individual shareholders is partly rooted in the way they hold their shares before the listing of the company. In order to avoid being unable to go public due to the existence of serious tax administrative penalties or tax-related criminal risks, companies need to be prudent in designing and constructing their shareholding structure.2268Views
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Many anchors were fined for tax evasion, how to prevent tax-related risks for anchors and live broadcasting platforms?
In recent years, with the increasing scale of the Internet economy, the public's demand for audio-visual entertainment has become increasingly rich, giving rise to a huge network entertainment industry. Relying on various live broadcasting platforms, a large number of considerable network anchors realize their personal value on the Internet, and also gain considerable wealth through the audience's reward and live broadcasting with goods. However, some webcasters lack the awareness of tax compliance, fail to fulfill their tax obligations on time and in full, and even adopt various means to avoid or even evade taxes, coupled with the lack of tax supervision when the network entertainment industry has just emerged, resulting in the loss of national taxes, and this kind of problem has already aroused the concern of the State Administration of Taxation and the related departments such as the net information department and the industry and commerce department, and has already exposed many cases of tax evasion by webcasters. Such problems have attracted the attention of the State Administration of Taxation and related departments such as the Internet information department and the industry and commerce department, and a number of cases of tax evasion by anchors have been exposed. Recently, several cases of tax evasion by anchors have broken out one after another around the world. This article analyzes the core issues and "conversion of income nature" in the cases of tax evasion by anchors and points out the tax-related risks and their responses.2685Views
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Land value-added tax case: real estate company securing debt performance in the name of house purchase and sale was pursued for land tax increase
In order to cope with the shortage of cash flow to postpone the fulfillment of debts, or to successfully raise funds, real estate development enterprises may choose to use the commercial properties they have developed to enter into a sale and purchase contract with creditors, and adopt the method of granting guarantees to guarantee the fulfillment of debts. Although the transfer guarantee is not intended to be a transfer of real estate, if a change in property ownership occurs during the transfer guarantee process, there is a risk that the tax authorities will recognize it as a transfer of real estate and levy a land value-added tax (LVAT) on it.2639Views
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Case Analysis: Five Common Tax Risks of Equity Transfer for High-Income People
High-income people's equity transactions are characterized by large amount of subject matter and complex commercial arrangements, etc. Under the background of "double random, one open" normalized tax supervision, their equity transfer has become the focus of tax audit. In the complex business background, the existing tax policy has a certain lag, the practice of equity transfer tax-related disputes are endless, in the background of strict regulation of high-income people's equity transactions there are a lot of tax-related risks, this paper to the practice of equity transfer of the five common types of tax-related risks as an entry point for discussion, for reference.
In March 2021, the General Office of the Central Committee of the Communist Party of China (CPC) and the General Office of the State Council issued the Opinions on Further Deepening the Reform of Tax Levy and Administration, which explicitly pointed out to strengthen the tax service and supervision of high-income and high-net-worth individuals in accordance with the law. The Inspection Bureau of the State Administration of Taxation subsequently issued a document stating that it would strengthen the supervision of high-income earners in key areas such as equity transfers. The Measures for Administration of Individual Income Tax on Income from Equity Transfer (for Trial Implementation) (SAT Announcement No. 67 of 2014, hereinafter referred to as "Announcement No. 67") is the main policy basis for the tax-related treatment of individual equity transfers at present, and provides regulations on individual equity transfers in terms of income from equity transfers, recognition of the original value of the equity shares, and management of tax declarations, etc. Announcement No. 67 is the main policy basis for the tax-related treatment of individual equity transfers. Circular 67 is a general provision on the transfer of equity interests by natural persons, but under the complex commercial arrangements in practice, the application of income tax on equity transfers in some cases is highly controversial, which may expose high-income earners to administrative or criminal risks.2278Views
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The five major triggers of export tax rebate risk from the publicized cases of the State Administration of Taxation
Fraudulent export tax refunds have always been a key target of the fight because they cause huge losses to the country's tax money and jeopardize the order of export tax administration. At the same time, the administrative and criminal liability for fraudulent export tax rebates is also extremely heavy. In the light of the suspension of the right to export tax refunds, payment of taxes, late fees, fines, or face criminal liability of up to life imprisonment. In order to better strengthen the majority of foreign trade industry enterprise compliance, to prevent problems before they occur, this paper examines the State Administration of Taxation since 2022 publicized cases of fraudulent export tax refunds, the reasons for the outbreak of the case, the trigger to be summarized for the reader's reference.2780Views
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Courts in many places are promoting criminal compliance reforms, and enterprises and entrepreneurs involved in tax-related crimes are exempted from criminal penalties!
Due to the late establishment of China's modern tax law system, a large number of enterprises, especially private enterprises, lack the necessary understanding of tax compliance, so tax-related crimes have also become a "roadblock" that impedes the development of private enterprises, and many entities have been sentenced to criminal penalties for suspected tax evasion and fraudulent invoicing.2022 Since April 22, the compliance reform for case-related enterprises led by the Supreme People's Procuratorate has been rolled out nationwide and has achieved good results in practice. Since April 2022, compliance reforms led by the Supreme People's Procuratorate for enterprises involved in tax evasion have been rolled out nationwide and have achieved good results in practice. By handling a number of cases involving compliance reforms, we have noticed that the previous compliance reforms led by the procuratorate had some problems in practice due to the lack of court involvement:
1. Procuratorial authorities only have a single way of closing cases with "relative non-prosecution", and do not easily carry out compliance reforms for felonies that may be sentenced to more than 10 years of imprisonment. Due to the high penalty for the crime of false VAT invoicing, it is impossible to carry out compliance, which is not conducive to saving the real enterprises.
2. The period of review and prosecution stage by the procuratorial authorities is too short, and there are cases in which the enterprises involved in the case did not file compliance applications in time, or the enterprises could not complete the rectification within the period, so they can only resort to the court in the end.
3. At the trial stage, the court lacks a policy basis for applying to the enterprise's willingness to file a compliance rectification application, and to the sentencing recommendation of the prosecuting authority based on the compliance rectification circumstance that breaks the statutory sentence or suspended sentence.
At present, the extension of criminal compliance to the trial stage will strive to solve the above problems, which is conducive to saving the real enterprises. In practice, courts have already issued "exemption from criminal punishment" sentences through compliance at the trial stage. It should be noted that there are some unique problems for enterprises in tax-related crimes, which need to be further refined in the reform. This paper first summarizes and analyzes the current pilot policy, and then interprets the current pilot from the perspective of how court involvement in compliance differs from that of the prosecutor's office.3220Views
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Can the tax authorities recover the unliquidated tax on changing the company into a partnership?
The change of "limited liability company" to "partnership" is a common structural arrangement for enterprises to implement equity incentives and build employee shareholding platform. Since November 2022, tax authorities in many places have been checking the failure to liquidate the "company to partnership" process. Recently, the news that an internet financial data service company faced a huge amount of back tax due to the failure to liquidate the tax in the change of organization form of its shareholding platform triggered the heated discussion on the compliance issue of "company to partnership" once again. The recent news of an Internet financial data service company facing a huge tax reimbursement for failing to clear the tax in the organizational form of its shareholding platform has once again triggered a heated debate on the compliance issue of "company to partnership". Does "company to partnership" require liquidation in business and taxation, and does the tax authority have the right to recover the unpaid tax in the process of change of organization form, and from whom should the tax authority recover the tax? This article will discuss and analyze the above issues for reference.3081Views
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Case: the issuing party was sentenced to life imprisonment for the crime of false invoicing, and the received party was sentenced to probation for illegal purchase
According to the provisions of the Criminal Law and relevant judicial interpretations, false invoicing of VAT includes four modes of behavior: false invoicing for others, false invoicing for oneself, letting others false invoicing for oneself, and introducing others to false invoicing. However, in specific cases, are the invoicing party and the invoiced party necessarily guilty of the same crime? Why some cases in the invoicing party constitutes false opening, but the invoiced party does not constitute false opening? This article discusses the responsibility determination of different subjects in the behavior of false invoicing of VAT special purpose invoices through two corresponding cases of the invoicing party and the invoiced party, as well as how to prevent the risk of false invoicing in the daily transactions of the invoiced enterprises in practice for the readers' reference.1810Views