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Three Major Controversies Facing the Land Value-Added Tax Settlement of Civil Air Defense Parking Spaces
228ViewsMay 9, 2024, 2:05 p.m. -
Inflated costs and expenses to pay back taxes and penalties of 36 million: a case to see the four major tax risks of real estate and development enterprises
703ViewsDec. 13, 2023, 5:49 p.m.
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Does the tax authority have the right to recover the tax if an individual acquired and transferred the land use right more than ten years ago?
Recently, a local tax bureau issued two Notices of Tax Matters, ordering the individual who acquired the land use right and transferred it to the outside world to declare and pay the taxes and late fees involved in the two transactions. Based on the background of this case, this article will analyze the differences between civil law and tax law, the tax basis of the transactions involved, and whether the recovery period is applicable.744ViewsNov. 30, 2023, 1:21 p.m. -
Suspended real estate enterprises to obtain land compensation was approved income tax and fines, not required to make up the land increase tax
Recently, an inspection bureau of Hainan Provincial Taxation Bureau announced a Notice of Administrative Penalties, which characterized the tax evasion of a real estate enterprise that had been revoked for 12 years and refused to declare enterprise income tax and urban land use tax after being notified to do so by the tax authorities, and proposed to impose a fine of 50% of the amount of the enterprise income tax to be paid within the period of the recovery of the penalty. Based on the factual information disclosed in the notification letter, this article will summarize and analyze the facts of this case.728ViewsNov. 30, 2023, 12:11 p.m. -
Whether land value-added tax should be levied on idle land resumed by the government from two cases
A real estate development enterprise obtains the land use right to develop and construct a real estate project, which may not be able to start or may be stalled for a number of reasons, and then the government will take back the land. According to the Urban Real Estate Management Law, urban land resumption can be categorized into compensated and uncompensated. As to whether enterprises need to pay land value-added tax when the government resumes the land with compensation and the land compensation is higher than the cost of land acquisition and development, the results of the current cases are different. This article will analyze whether land value-added tax should be levied under different circumstances when land is resumed by the government.820ViewsNov. 26, 2023, 9:56 p.m. -
Can interest expenses be truthfully deducted when a real estate company fails to obtain an invoice for a loan from a financial institution?
The initial cost of real estate project development is high, and a large amount of capital investment is required for pre-development. Many enterprises' own funds are difficult to meet the demand for engineering construction, and due to the strict approval of loans by financial institutions, in order to ensure that the project is carried out normally, the enterprises are forced to broaden the source of funds through other financing channels. However, according to the rules of the current tax law, when handling the land value-added tax settlement, the interest expenses incurred are subject to different deduction methods depending on the circumstances. Taxpayers should effectively grasp the scope and conditions of interest expense deduction to ensure maximum enjoyment of deduction.1562ViewsNov. 21, 2023, 1:42 p.m. -
Real Estate Enterprises Land Increase Tax Clearance Cost Sharing Method Improperly Selected to Increase Tax Liability by Ten Million Dollars
When real estate development enterprises carry out land value-added tax (VAT) settlement, it is an important obligation of taxpayers to reasonably collect the relevant income, costs and expenses between different periods and projects as required, and it is also a key concern of the competent tax authorities in carrying out preliminary management and settlement audit. As there are differences in the amount of land value-added tax levied under different apportionment methods, and the land cost constitutes an important part of the base for enterprises to add deduction and development expenses, whether the correct cost apportionment method can be selected will have a significant impact on the tax burden of enterprises. However, as the land cost apportionment method for real estate development projects has not yet been unified at the national level, localities have autonomy in determining the apportionment method, and the decentralization and differentiation of tax policies in different regions have made it difficult for taxpayers to understand the relevant policies and carry out tax-related operations, which has led to many disputes between taxpayers and enterprises in determining the land cost apportionment method.1644ViewsNov. 21, 2023, 10:06 a.m. -
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.2155ViewsNov. 20, 2023, 8:53 p.m. -
National Land Tax Centralized Liquidation Continues, Housing Enterprises Should Be Alert to Six Tax Risks
Since 2023, a number of local tax bureaus have focused on issuing a number of notices on tax matters, requiring real estate enterprises to make liquidation declarations on their land value-added tax (LVAT) or to approve their taxable amount, which may result in a concentrated eruption of tax-related risks for the enterprises. For projects eligible for liquidation, real estate enterprises should organize timely liquidation and pay close attention to the risk of land value-added tax.2953ViewsNov. 20, 2023, 5:49 p.m. -
Can the enterprise real estate development costs and expenses be deducted in the land value-added tax clearance without obtaining invoices?
In tax enforcement and judicial practice, the deduction of land value-added tax costs and expenses focuses on the two key points of "deduction vouchers" and "actual occurrence". Compared with the authenticity, legality and relevance requirements of "substance over form" for pre-tax deduction of enterprise income tax, the caliber of deduction of land value-added tax costs and expenses is narrow. In this paper, we will compare the requirements, scope and consequences of deduction of land value-added tax costs and expenses with those of deduction before enterprise income tax from the perspective of deduction vouchers, and reveal the risk of land value-added tax settlement and its solution if no deduction vouchers have been obtained or the deduction vouchers are not in compliance with the current system conditions.1186ViewsNov. 19, 2023, 12:30 p.m.