SMEs are waiting for recovery, tax compliance should not be ignored
After three years of epidemic, China's economy has shown a faster recovery trend since this year. According to the data recently released by Wang Jun, Director General of the General Administration of Taxation, the sales revenue of enterprises in the first quarter of this year has increased by 4.7% year-on-year, of which the purchase amount in March has increased by 14.1% year-on-year, and the sale of enterprises has also had a higher growth. It can be said that a large number of small, medium and micro enterprises are in the process of recovery in the "post epidemic" era and will usher in a phase of rapid development as the economy picks up, with an increase in the number of businesses, increased performance, and sufficient corporate capital flow. ......

In order to encourage mass entrepreneurship and innovation, and promote economic upgrading and development, enterprises in line with the provisions of the Administrative Measures for the Recognition of High-tech Enterprises are able to enjoy the enterprise income tax rate of 15% type of concessions, and at the same time, enjoy the extension of the number of years of loss carry-forward and other tax incentives. In recent years, a number of high-tech enterprise certification bodies to strengthen the supervision and management of high-tech enterprise qualification, has issued a number of cancellation of high-tech enterprise qualification announcements, enterprises face the risk of paying back taxes and late fees or even tax evasion. In this paper, from the identification requirements of high-tech enterprises, we list the common cases of high-tech qualification being canceled in practice, in order to suggest the risk for readers' reference.

China's laws, regulations and judicial interpretations have not made clear provisions on the judicial auction after the abortive auction against the debt in kind link tax issues, the applicant accepts the debt in kind, its legal status is equivalent to the buyer. In accordance with the provisions of the tax law, all kinds of taxes have legal taxpayers, but in practice, the executor usually insolvency, no incentive to cooperate with the collection of taxes and fees, taking into account the problem of tax collection, part of the court usually ruled by the applicant to bear the relevant taxes and fees, or inheritance of auction notices in the tax provisions for processing. In this paper, the tax in judicial auction as an entry point, analyze the judicial auction after the abortive auction in kind against the debt link tax situation and rationality, for readers' reference.

Cross-border tax planning with its complexity, covertness and efficiency has always been the place of preference for high-income people, and the tax avoidance problem it triggers has always been the focus of attention of competent tax authorities in various countries. In China, with the promulgation of the new Individual Tax Law and the implementation of the CRS system and the BEPS Convention, the cross-border tax avoidance problem is being gradually solved, and the former tax planning may trigger the anti-avoidance adjustment of tax authorities.
This article focuses on the three more common planning methods of high-income people, namely, indirect equity transfer, retaining profits overseas without distributing them, and changing the status of residents. Combined with the current domestic regulatory background of anti-avoidance of taxes for high-income people, it reveals the tax risks of the relevant people through the cases that have been disclosed so far. If you take history as a mirror, you can know the rise and fall; if you take people as a mirror, you can understand the gains and losses.

With the development of the new business economy, flexible employment as a brand new employment model has attracted much attention in the market. It has been reported that the number of flexibly employed people has reached more than 200 million in 2021, and the overall market size of China's flexible labor has reached 1.1 trillion in 2022 and 1.34 trillion in 2023. Flexible labor platforms are favored by local governments and enterprises as a platform that connects enterprises with freelancers, transforming the traditional employment relationship between enterprises and laborers into a cooperative relationship between enterprises and laborers, and serving both the functions of reducing enterprise costs and promoting employment. More than 1,000 flexible labor platforms in provinces such as Tianjin, Hunan, Jiangsu, Liaoning, and Jiangxi have obtained the qualification of commissioned collection. However, some of the flexible labor platforms have been suspected of tax evasion and false invoicing, and have been disqualified from collecting tax on behalf of enterprises, and are facing administrative and criminal risks. In this article, we will focus on the tax-related risks of flexible labor platforms with practical cases to help platform enterprises achieve tax compliance.

Article 63 of the Tax Collection and Administration Law provides for four situations that are recognized as tax evasion, including forgery, alteration, concealment, unauthorized destruction of account books and bookkeeping vouchers, overstating expenditures or omitting or understating revenues in the account books, and refusing to make a declaration or making a false tax declaration after being notified to do so by the tax authorities. Whether constitutes tax evasion is often related to the tax recovery period. In practice, due to the lack of clarity of laws and regulations, "failure to make a tax declaration" is tax evasion controversy, this article from a judicial decision, from the elements of tax evasion, the application of the recovery period and other perspectives to analyze this issue.

The recent cases of suspected false invoicing by individuals have been occurring frequently, throwing the potential tax risks behind this behavior into the public eye. Through the combing and analysis of the cases, it can be found that the natural person invoicing cases show the characteristics of industrialization: firstly, more than half of the cases disclosed so far are construction enterprises, mainly because of the serious shortage of input invoices, and the construction enterprises try to use their employees or fiscal platforms to issue invoices on behalf of the construction enterprises; secondly, the flexible labor enterprises have triggered the tax audit due to the large number of individuals involved in the invoicing; moreover, the industries of medicine and freight transport choose to issue invoices through individuals due to the existence of problems such as the difficulty of obtaining input invoices. In addition, pharmaceuticals, freight transportation and other industries choose to issue invoices on behalf of individuals due to the difficulty of obtaining input invoices and other problems.
Previously, Hwuason systematically elaborated the concept of personal invoicing and related risk points through the article "Case Study: Analyzing Five Major Tax Risks of Personal Invoicing". In this article, we try to start from the industry where personal invoicing cases occur frequently, talk about the root causes of the cases, and analyze the risks of personal invoicing in combination with cases.

Tax-related issues are inevitable in enterprise bankruptcy proceedings, and it is of great significance for the smooth and efficient operation of the bankruptcy mechanism to appropriately deal with the historical tax arrears of the bankrupts, the nascent taxes and fees during the bankruptcy proceedings, and the post-bankruptcy tax and fee write-off issues. The Announcement of the State Administration of Taxation on Several Matters Concerning Tax Levy and Administration (Announcement No. 48 of 2019 of the State Administration of Taxation, hereinafter referred to as "Circular No. 48") is the main document in the field of tax levy and administration to deal with the tax-related issues in the liquidation procedures of enterprise bankruptcy, and it has responded to some of the convergence issues between the Enterprise Bankruptcy Law and tax levy and administration, but there are still many difficulties in application in practice. However, there are still a lot of difficulties in application in practice. Article 4 of Article 48 stipulates that in the bankruptcy liquidation procedure, the tax authority shall declare to the bankruptcy administrator the taxes owed by the enterprise (including education fees and local education surcharges), late payment fees, penalties, and interest generated by special tax adjustments in the claim filing period, and the author will analyze the common tax-related disputes in the bankruptcy procedure from the content of the four declarations, and the article will discuss the issue of taxes owed in order to provide a basis for the analysis. This article firstly discusses the issue of tax owed for reference.