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Case Analysis of the Four Major Tax-related Criminal Risks and Defense Strategies of Export Tax Refunds for Foreign Trade Enterprises
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Can the court and the tax office withhold the refundable tax amount when the export tax refund account has been pledged?
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Foreign Trade Threshold Relaxation Helps SMEs, Tax Refund Compliance Becomes an Industry Imperative
In recent years, China's export trade volume continues to grow, with the annual export of goods reaching as high as 23.97 trillion yuan in 2022, an increase of 10.5%; export tax refunds totaling 186.78 billion yuan were handled throughout the year. However, prior to this year, engaging in foreign trade was subject to the filing of foreign trade operators, so some small and medium-sized enterprises (SMEs) and individual households were unable to carry out export business. To encourage the development of the foreign trade industry, the Standing Committee of the National People's Congress (NPC) abolished this filing at the end of 2022, further relaxing the threshold for participation in foreign trade. In addition, the State Administration of Taxation (SAT) issued several announcements during 2022 to continuously accelerate export tax refunds. The potential risk of fraudulent export tax refunds is a cause for concern as a result of the two factors, namely the number of market participants becoming larger and the relaxation of tax refund audits. In addition, due to the complexity of export business and tax refund, the business of entrusting agents to export and handling tax refund has a good prospect, which expands a broad market for the foreign trade comprehensive service platform (hereinafter referred to as "foreign comprehensive service"). In view of this, this article introduces the compliance points and tax incentives for MSMEs to carry out foreign trade exports in light of the current regulations, and at the same time, explains how to prevent the risk of tax rebates for foreign comprehensive service platforms.1148Views
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The use of the border market to smuggle and fraudulently obtain export tax refunds of 17.7 million dollars! How can border exporters enhance compliance?
Border People's Mutual Market Trade refers to the exchange of commodities in the border areas, at open points or designated bazaars approved by the government, where border people can exchange commodities within the scope of not exceeding the specified amount or quantity. In order to promote the economic development of border trade ports, China has formulated a policy of tax exemption for border people's mutual trade, and exempted the commodities that meet a certain amount and quantity from taxes and fees in the importing process. In recent years, some lawless elements have set their eyes on the tax exemption policy of Border Mutual Trade, and have been repeatedly committing crimes through the circular export means of export tax rebate - smuggling and importing - export tax rebate again, forming a closed loop of false export and import, and cheating export tax rebate, which has resulted in the loss of national tax money. The loss of national tax. In view of this, this paper will start from the practical case of a company's fraudulent export tax rebate through the circular export of the tax exemption policy of the Border and People's Mutual Markets, combing the tax exemption policy of the Border and People's Mutual Markets in detail, combining with the recent trend of the state's strict investigation into the use of the "circular export" and other means of fraudulent export tax rebates, and providing suggestions for the tax compliance of the export enterprises.1086Views
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After cheating concessions and then tax fraud is held criminally liable! Foreign trade enterprises export software products how to prevent the risk of tax rebates?
In order to promote the development of software industry and the construction of China's informationization, China's tax law stipulates that general VAT taxpayers selling self-developed and produced software products shall implement the policy of immediate tax rebate for the portion of their actual VAT tax burden exceeding 3%. In practice, this tax incentive policy has been utilized by unscrupulous people, creating many cases of fraudulent tax incentives. Recently, a software enterprise fraudulent tax incentives and then fraudulent export tax rebate case triggered concern, the case reflects the software industry tax-related criminal behavior has been through the domestic sales and exports. In this regard, foreign trade enterprises should pay more attention to the risk of tax fraud in the export business of software products and take effective measures to prevent and control the risk.1035Views
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Why is the importation of goods by way of border trade penalized by a conviction for smuggling?
The so-called "Border People's Market Trade" refers to the exchange of commodities by border people in border areas within 20 kilometers of China's land borders at government-approved open points or designated bazaars, within a specified amount or quantity. According to the relevant provisions, in line with the conditions of the border trade, import tariffs and import taxes on incoming goods are exempted. As a result, the practice of enterprises to take advantage of the policy, the need to import goods "into zero", through the border people to bring in the way of transport into the country, in order to avoid the customs tax supervision, at this time, the enterprises and personnel involved in the case are usually facing the risk of being characterized as a criminal smuggling. Starting from this issue, we will write a series of articles to discuss and analyze the smuggling problems caused by the "border trade", with a view to providing assistance to relevant enterprises and personnel.987Views
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Does the owner of the goods constitute the crime of smuggling when the agent falsely declares that the goods have been imported in the "Border and People's Mutual Market"?
According to the relevant provisions, goods imported in the form of "border-people mutual market" trade are exempted from import tariffs and import linkage taxes. As a result, in practice, the use of this policy, the need to import goods through the border people to carry the mode of transportation into the country to avoid paying taxes. At this time, the subject is usually convicted and punished for the crime of smuggling ordinary goods. And if the owner of the goods commissioned by the agent to import goods through customs, the agent is falsely declared "border crossing" trade in the way of smuggling, the agent and the owner of the goods at this time should be how to characterize and deal with? This article is centered on this issue to start the analysis.1021Views
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The frequent occurrence of tax fraud cases in four major areas of foreign trade, the business model of the potential risk of knowing geometry
In 2022, in order to encourage the development of foreign trade economy in the face of the unusually complex international situation, the state still implemented a strong export tax rebate policy. During this period, the State Administration of Taxation (SAT) has repeatedly "speeded up" the process, requesting to further shorten the approval period for tax rebates and reduce the information for tax rebate applications, so as to ensure that the tax rebate funds will benefit the enterprises and reduce the financial pressure on the enterprises. In order to prevent lawbreakers from fraudulently obtaining export tax refunds, tax authorities have joined forces with public security, customs, foreign exchange and other departments, utilizing information technology to continuously improve the strength of the crackdown on fraudulent export tax refunds.2022, the risk of tax fraud is mainly concentrated in the agricultural products, textiles and garments, precious metals, and software technology industries, with a number of cases erupting. This article explains the compliance countermeasures for foreign trade exports by analyzing the patterns and risk points of the four major industries.2110Views
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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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Tennis string cycle export tax fraud tens of millions! Analysis of Circular Export Risks and Key Points of Foreign Trade Compliance
Recently, Xinhuanet reported that the Economic Investigation Corps of the Shanghai Municipal Public Security Bureau, together with the Baoshan Public Security Bureau, and the Inspection Bureau of the Shanghai Municipal Taxation Bureau, jointly detected a case of using low-priced "tennis strings" and "badminton strings" as props and goods to circulate exports to defraud tax refunds, involving tens of millions of tax refunds. As a typical illegal act of defrauding export tax rebates, circular export has strong concealment and harmfulness. In view of this, this article takes this case as a starting point to analyze the types of businesses that use circular exports to defraud taxes, and provides defense space and compliance suggestions for the majority of foreign trade enterprises to study and reference.2432Views