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Another award-winning freight platform convicted of illegal sale of VAT invoices, failure to investigate the subjective intent of false VAT invoicing and tax losses raised great doubts
818ViewsOct. 15, 2024, 2:11 p.m. -
In the Government-led Iron and Steel Production Capacity Index Replacement, the Tax Cannot be Levied on the Basis of Deemed-transferred for Enterprises Reduced Production
1165ViewsOct. 12, 2024, 11:50 a.m.
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How do HNWIs dismantle partnership-type shareholding platforms to realize optimal tax savings?
In the past, many high net worth individuals (HNWIs) have built partnership shareholding platforms in tax depressions in order to enjoy tax incentives such as approved levies and fiscal refunds to realize tax savings. However, with the Notice on Administration of Collection of Individual Income Tax on Income from Equity Investments (Notice No. 41 of the Ministry of Finance and the State Administration of Taxation of 2021) coming into effect, coupled with the strict investigation of illegal financial rebates in recent years, the original tax advantages of partnership-type shareholding platforms have gradually disappeared, and HNWIs have chosen to dismantle their shareholding platforms and return to the original state of direct shareholding. The dismantling of the shareholding platform will also generate a high tax burden, what kind of dismantling can HNWIs choose to realize the optimal tax saving effect? This article is intended to discuss.1069ViewsOct. 11, 2024, 10:24 a.m. -
Practical Points: How To "Reverse Invoicing" Resource Recycling Enterprises?
This year, the tax policy of the renewable resources industry has undergone significant changes, and on 24 April, the State Administration of Taxation (SAT) introduced the policy of "reverse invoicing", under which recycling enterprises meeting the conditions can obtain invoices from natural person sellers of end-of-life products ("sellers") and then make corresponding VAT deductions and pre-deductions before enterprise income tax (EIT). The State Administration of Taxation (SAT) introduced the "reverse invoicing" policy, under which recycling enterprises meeting the conditions can obtain invoices from natural person sellers of end-of-life products (hereinafter referred to as "sellers"), and then carry out the corresponding VAT deduction and EIT pre-deduction. At present, the policy has been implemented for 5 months, and while the "reverse invoicing" policy has solved the pain point of "the first ticket" in the renewable resources industry, there are some issues that need to be clarified in the process of its practice. In this paper, four representative issues are selected for analysis, aiming to help enterprises in the renewable resources recycling industry apply the "reverse invoicing" policy more accurately and improve tax compliance.1534ViewsSept. 30, 2024, 2:53 p.m. -
Spiritual work platform on behalf of the executive remuneration is characterized as illegal sale of VAT invoices crime should be how to break the situation?
The two high tax-related judicial interpretations make it clear that the crime of false invoicing is not punishable if the purpose is not to fraudulently offset the tax, and if there is no fraudulent loss of tax due to offsetting. At the same time, the interpretation of the Supreme Law pointed out that the behavior of invoicing party charging “invoicing fee” and “tax point” and then invoicing others is essentially selling VAT invoices as commodities, and it is an illegal sale of VAT invoices. Influenced by this, the cases involving platform enterprises are basically characterized according to the crime of illegally selling VAT invoices. According to the main data of judicial trial work in the first half of this year published by the Supreme Court, the number of cases received in the first instance for the crime of illegal sale of VAT invoices increased by 190% year-on-year, which also reflects a significant shift in the judicial thinking of handling cases involving invoices. This article intends to combine a real case to analyze how the enterprises involved in the case should break the situation.1545ViewsSept. 30, 2024, 11:53 a.m. -
Does the enterprise's failure to make a tax declaration when it is in doubt about the taxation of an economic matter necessarily constitute tax evasion?
Among the types of offences for which administrative penalties are imposed through tax inspection procedures, tax evasion accounts for a high proportion, has heavy consequences and is controversial, and various factors make the determination of tax evasion a hot tax issue that has attracted much attention. For the understanding of some tax laws and regulations, tax enterprises often have deviations, imperfections in tax laws, the emergence of new business models, etc., which will inevitably cause disputes between tax enterprises. Such as the ‘Tax Administration Law,’ Article 63, ‘does not list less income’ behaviour, such as taxpayers due to disputes over the understanding of tax policy and law, can a blanket qualification for tax evasion? Based on a case of tax evasion penalty being revoked, this paper discusses the constitutive elements of tax evasion, the burden of proof, the standard of proof and other issues, and points out that cases in which there are cognitive differences between the two sides of tax enterprises on a tax-related matter should not be unilaterally qualified as tax evasion, which can make the determination of tax evasion and the penalty more in line with the requirements of the principle of equal responsibility and punishment.1460ViewsSept. 26, 2024, 11:21 a.m. -
Cross-border e-commerce companies were pursued by the U.S. tax authorities for $2.37 million, how to make good tax compliance at home and abroad?
With the development of trade globalization, cross-border e-commerce has ushered in a booming development. According to the Economic Daily News, China's cross-border e-commerce import and export of 1.22 trillion yuan in the first half of 2024, an increase of 10.5% year-on-year, higher than the overall growth rate of China's foreign trade in the same period of 4.4 percentage points; in 2023, China's cross-border e-commerce import and export increased by 1.2 times compared with 2018. As one of the new modes of export, the development of cross-border e-commerce can not be separated from the support of tax policy, but also faces many tax risks, both to do a good job in the export business of the various types of tax compliance, but also to face the different tax jurisdictions of legal supervision, if you fail to do a good job in the construction of the compliance, easy to tax treatment, penalties, or light to face the economic loss, or the existence of a heavy criminal risk. This article combines the recent cases of cross-border e-commerce, inventory and analyze the common tax risks, and put forward the tax compliance opinions for the benefit of readers.1798ViewsSept. 25, 2024, 9:54 a.m. -
How can the remedy process be effectively initiated through a tax bond when tax payment is required as a precursor to filing a reconsideration?
Guarantee is a common means of credit enhancement in civil and commercial legal relations, which has the functions of reducing transaction risks and guaranteeing the realization of claims, and is of great significance to the financing of enterprises. In the field of tax administration, the role of tax guarantee should not be ignored, especially in the tax disputes that need to pay tax before starting the reconsideration procedure, the tax guarantee can be used as the “equalizer” for the payment of tax and late payment fee to protect the legitimate rights and interests of taxpayers while safeguarding the collection of national tax. The Trial Measures on Tax Guarantee have made relatively systematic provisions on tax guarantee, but it has not been revised since its promulgation in 2005, and it has not responded to the disputes such as the scope of collaterals and the period of confirmation of guarantee, etc., which existed in practice, and there exists a certain degree of lagging, and due to the requirement of the pre-positioning of tax payment for reconsideration, based on the justiciable nature of the tax guarantee, some of the disputed cases have undergone litigations on the establishment or otherwise of the tax guarantee before the filing of the rights and remedies. The tax guarantee is established or not, the formation of the “case within a case”. In this paper, two common disputes related to the confirmation of tax guarantee are discussed to analyze how enterprises can effectively complete the requirement of tax payment prior to tax payment through tax guarantee and successfully initiate relief procedures.1741ViewsSept. 23, 2024, 11:13 a.m. -
A platform was fully recovered tax, must pay attention to the tax risk of the application of Split System
Split-accounting system is favored by the booming platform enterprises in the Internet era because of its convenient settlement, fund security and high flexibility. However, in practice, some platform enterprises lack compliance awareness, and the invoicing or fund settlement method is unreasonable, which easily puts them into tax risk. In this article, the author will combine two cases in which platform enterprises were required by tax authorities to bear the full amount of VAT tax obligations for all the money received, analyze the tax risks under the split account mode of platform enterprises, and give the defense ideas and compliance suggestions to help platform enterprises to prevent and resolve tax risks.2276ViewsSept. 19, 2024, 2:29 p.m. -
After Obtaining a False Invoice that is Qualified as Tax Evasion, Will it Still Constitute the Offence of False VAT Invoicing?
With the emergence of new forms and modes of business in various industries, the characterisation and handling of cases involving fraudulent invoices have shown a trend of complexity. According to the relevant provisions of tax law, criminal law and judicial interpretations, enterprises obtaining fraudulently issued VAT invoices are exempted from the criminal punishment of tax evasion if they are qualified as tax evaders by the tax authorities if they pay the tax, late payment fees and fines in a timely manner. However, in recent law enforcement practice, there are cases in which the enterprises obtaining the invoiced special invoices are still filed by the judicial authorities for the offence of false VAT invoices after being qualified as tax evasion by the tax authorities. Based on this, this article will discuss the issue of whether the invoiced enterprises will still constitute the offence of false invoicing after being qualified as tax evasion by the tax authorities, starting from the current situation of the invoiced enterprises obtaining false invoices.1802ViewsSept. 18, 2024, 10:56 a.m.