VAT levied or not levied on a company's investment in an intangible asset at value

Article 201 of the Criminal Law of China provides for the provision of the reasons for tax evasion, i.e., after the tax authorities have issued the notice of recovery according to the law, the person shall not be held criminally liable for making up for the tax due, paying the late payment penalty, and has already been subject to the administrative penalty. However, in judicial practice, how to apply the tax evasion blocking provisions for individual cases is still controversial, this paper intends to analyze the application of the tax evasion blocking provisions through a typical case.

In recent years, the heavy tax burden in the manufacturing industry has become a common problem faced by many enterprises, and the iron and steel industry, as an important basic industry of the national economy, is also similarly faced with a high tax burden pressure. Since April 1, 2019, the central government has opened a tax reduction initiative, and the value-added tax of the manufacturing industry has been reduced from 16% to 13%. So what is the current tax burden situation of China's steel industry? What tax-related problems do steel enterprises face in the development process? This article will analyze these issues.
In recent years, the international political and economic situation is complex and severe, and the downward pressure on the domestic economy has increased. The country continues to implement a proactive fiscal policy and prudent monetary policy, maintaining the general tone of seeking progress while maintaining stability. Counter-cyclical regulation has been adopted, and a series of "stable growth" policies have been introduced and are being implemented with increasing vigour. The fundamentals of the long-term economic improvement has not changed; promote consumption, tax cuts and fee reductions, "make up for short boards" and other policy effects gradually appeared, is conducive to stimulate demand and reduce costs. Steel industry continues to promote in-depth structural reform of the supply side, vigorously energy saving and emission reduction, the operation of the overall stability, but also facing a significant decline in efficiency, tax pressure and environmental protection pressure to increase the difficulties.

In practice, due to the difficulty in obtaining input invoices for bulk commodities, some enterprises chose to obtain VAT invoices by opening or purchasing on behalf of others in order to make up for the shortfall of inputs, and a large number of criminal cases broke out as a result. The author searched such tax-related cases and found that there were similarities in the business mode and behavior involved in such cases, but the final court judgment was "different judgments for the same case", in which most of the judgments were that it constituted the crime of falsely issuing VAT invoices, and some of the judgments were that it constituted the crime of illegally purchasing VAT invoices, while the crime of falsely issuing VAT invoices was that it constituted the crime of illegally purchasing VAT invoices. Most of the judgments are considered to constitute the crime of false invoicing of VAT, and some of them are considered to constitute the crime of illegal purchase of VAT invoices, while the maximum penalty for the crime of false invoicing of VAT is life imprisonment and the maximum penalty for the crime of illegal purchase of VAT invoices is five years' imprisonment, which is a big difference between the two. The author searches for the public cases, sorts out the views of the courts and combines them with the objective problems in practice, in order to give the enterprises certain reference suggestions for the benefit of the readers.

Iron and steel industry is an important pillar industry of China's national economy. With the tightening of tax control, tax-related risks will bring greater negative impact on the development of iron and steel enterprises. In order to realize the sustainability of iron and steel enterprises' operation, it is necessary to strengthen the control of tax-related risks of iron and steel enterprises' own procurement. The raw materials of steel enterprises are mainly iron ore and steel scrap, of which steel scrap is a renewable resource. Compared with the production of steel from iron ore, the production of steel from steel scrap can effectively save iron ore, coke and raw coal, and at the same time, reduce carbon dioxide and solid waste emissions. However, the large tax risk in the procurement of steel scrap has become a bottleneck affecting the large-scale use of steel scrap by steel enterprises. In order to help steel enterprises to enhance their risk prevention awareness and improve their ability to deal with tax-related risks, this paper summarizes the four tax-related legal risks in the procurement process in light of the actual situation of procurement business of steel enterprises for reference.

Recently, a trading company was audited by the tax authorities for obtaining "proved false" invoices, and the case reflects a common risk faced by trading companies: the downstream recipient company is implicated because the upstream invoicing party issued invoices that were proved to be false. Then, the competent tax authorities of the upstream enterprise issued the Notice of Tax Co-operation and Notice of Proven False Invoicing, can the competent tax authorities of the downstream invoiced enterprise make different determinations and come to the opposite conclusion that the business is real? Does the invoiced enterprise have to pay back the tax? Can the real costs be deducted? This article takes a case as an introduction to analyze the above issues for readers' reference.

On April 1, the Inspection Bureau of Zhengzhou Municipal Taxation Bureau of the State Administration of Taxation (SAT) made public a "Notice of Taxation Administrative Penalty Matters" and the announcement of the delivery of the document to attract social attention. The instrument contains, due to the seller's invoice list of goods recorded in the purchase and sale of goods in the inventory system are not queried, and found that part of the funds back to the clues, so that the seller is recognized as a malicious false open without goods, to be punished. So, "funds back" that "no goods false opening" is what kind of relationship? Whether there are other reasonable doubt that the false opening failed to exclude? In this paper, we will analyze with the reader to "funds back" that "no goods false opening" of the wrong logic.

China's taxpayers should pay taxes, late fees or provide appropriate guarantees before filing administrative reconsideration. In practice, taxpayers who cannot pay taxes and late fees can only provide tax guarantees and be confirmed by the tax authorities before entering the reconsideration process. Providing tax guarantee by real estate mortgage is the most common choice for taxpayers, but it faces practical difficulties in operation. In this paper, a case of an enterprise providing tax guarantee by real estate mortgage without confirmation by the tax bureau reveals the focus of tax dispute between taxpayers and enterprises and the review duties and practical difficulties of the tax authorities in providing tax guarantee by real estate mortgage.