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Will Unfulfilled Equity Transfer Agreements Trigger Individual Income Tax Late Payment Penalties?
Nov. 24, 2025, 4:44 p.m.
1579Views
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When public security authorities directly initiate investigations into tax-related cases, can tax authorities still impose penalties?
Nov. 21, 2025, 5:04 p.m.
1765Views
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When Assessed Taxation is Reversed to Audit-Based Collection: Protecting Legitimate Rights When Facing Tax Deficiencies, Late Fees, and Penalties
Editor's Note: China's tax collection and administration adopts a model where audit-based collection is the principle and assessed taxation is the exception. The primary theoretical and practical rationale is to strive for consistency between the taxes collected by the tax authorities and the economic substance of the enterprise. Assessed taxation, as a simplified administration method, offers high efficiency and is particularly applicable in specific scenarios and industries. However, it has also led to cases of tax evasion. In recent years, with increased intensity in tax supervision, cases where prior assessed taxation is subsequently adjusted retroactively are not uncommon. Taxpayers face risks including being required to pay back taxes, late payment fees, and even having their actions classified as tax evasion resulting in penalties. Under what circumstances might assessed status be denied? What measures can taxpayers take to protect their legitimate rights after the denial of assessed status? This article will provide a brief analysis.Nov. 19, 2025, 5:13 p.m.
1845Views
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Who Shall Bear the Liability for Paying Arrears of Taxes When the Contractor Underdeclares and Underpays Taxes During Operation: the Contractor or the Enterprise?
Editor's Note: In market operations, some enterprises holding special administrative licensing qualifications often adopt the contract operation mode to entrust both their qualifications and business premises to third parties for operation, so as to monetize resources. However, if such a mode lacks standardized tax compliance arrangements, it is likely to trigger disputes over tax payment and liability division. Combining a typical case of contracted operation of a commercial and trade enterprise, this article explores core issues such as the attribution of liability for paying tax arrears, the identification of tax-paying subjects and compliance paths, so as to provide practical reference for relevant enterprises.Nov. 14, 2025, 4:11 p.m.
1300Views
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New Regulations on Tax-Related Information Reporting by Internet Platforms: Tax Risks for Influencers and Online Stores in Live Streaming Require Attention
Editor's Note: In recent years, live streaming e-commerce, as a vital component of the digital economy, has experienced rapid development. Concurrently, its tax compliance issues have gradually become a key focus of regulatory attention. To meet the tax collection and management needs of new business models, the State Taxation Administration and other departments have introduced policies such as the "Regulations on the Reporting of Tax-Related Information by Internet Platform Enterprises" (hereinafter referred to as the "Regulations"), marking a new stage of precise and transparent tax supervision driven by data. This article analyzes tax risks under different types of live streaming models in light of the new regulations and proposes systematic compliance recommendations to help relevant entities adapt to changes in the regulatory environment.Nov. 13, 2025, 12:01 p.m.
1508Views
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New Regulations on Platform Reporting Trigger a Wave of Back Taxes for Cross-Border E-Commerce: Ten Questions and Answers on Tax Compliance in the Era of Information Transparency
Recently, many cross-border e-commerce merchants have received text messages from tax authorities, informing them that their reported third-quarter VAT sales revenue was lower than the revenue reported to the tax authorities by the internet platform companies. They are advised to self-check for underpaid taxes and correct their declarations. Why have tax risks suddenly surged for cross-border e-commerce? Why is there a discrepancy between taxpayer declarations and platform-reported data? Can income from fake transactions be deducted? Can commissions paid to platform companies be offset as input VAT or deducted before tax? What should be done if purchase invoices are not obtained for goods? Cross-border e-commerce faces numerous tax challenges. This article aims to address current hot issues and provide tax compliance advice for cross-border e-commerce for reference.Nov. 12, 2025, 4:16 p.m.
2605Views
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Is it a fictitious transaction subject to adjust the supply mode of retail investors and obtain invoices from the company?
Editor's Note: The renewable resources, coal and other industries are generally natural persons and self-employed. Because natural individual retail investors cannot issue special VAT invoices, production enterprises usually add trading companies into the purchase and sale chain to realize their rights and interests deduction, and obtain special VAT invoices from trading companies. After the judicial interpretations of the two taxes were promulgated, some local courts held that the above situation was that the production enterprise realized the input deduction of the business that could not be deducted according to law through the fictitious trading company, which was a fictitious trading entity and constituted the crime of falsely issuing special invoices for value-added tax. Is the business model of the above-mentioned industries such as renewable resources a "fictitious transaction subject"? How to characterize trading companies and downstream production enterprises for the adjustment of business model with real transactions? This article will discuss this.Nov. 7, 2025, 4:22 p.m.
1374Views
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Tax Lawyers' Interpretation of the State Taxation Administration Announcement on Several Administrative Guidelines for Land Value Added Tax (Exposure Draft)
Editor's Note: Land Value Added Tax (LVAT) is a key tax for regulating the real estate market and participating in land revenue distribution, and the standardization and unification of its administration have always attracted much attention. Recently, the State Taxation Administration (STA) issued the Announcement on Several Administrative Guidelines for Land Value Added Tax (Exposure Draft) (hereinafter referred to as the "Announcement") to solicit public opinions. Prior to this, based on industry observations, Huashui Tax released the 2025 Compliance Report on Land Value Added Tax in the Real Estate Industry, which pointed out that current LVAT risks are highly concentrated in the standardized application of substantive tax elements. In practice, tax-enterprise disputes frequently arise over core tax system elements such as the period for collecting deductible items, exemption from LVAT for government land repossession, and the selection of allocation methods. The root cause lies in insufficient institutional supply. This Announcement serves as a crucial supplement to the national-level LVAT system, addressing concerns from frontline practice and market entities. This article will analyze each of the eight specific clauses of the Announcement, aiming to provide references for both tax authorities and taxpayers to accurately grasp the policy intent and actively participate in opinion feedback.Nov. 5, 2025, 6:24 p.m.
2252Views
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Different Judgments for the Same Case! How Should the Act of Issuing Invoices to Third Parties with Surplus Invoices Be Characterized?
Surplus invoice fraud refers to the situation where a business with actual sales does not issue invoices to the real purchasers because the counterparties do not need them, resulting in surplus input tax credits, which are then used to issue invoices to third parties for a fee. In practice, there is controversy over how to characterize the act of issuing invoices to third parties with surplus invoices. This article aims to explore this issue by examining two similar judicial cases.Nov. 3, 2025, 4:58 p.m.
2025Views
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Surge in Enforcement Cases Against "Declaration Purchase Export" in Cross-border E-commerce: Heightened Tax Risks Under New Information Reporting Rules
Editor's Note: The successive implementation of the "Announcement on Optimizing Matters Related to Enterprise Income Tax Prepayment Filings" (2025, No. 17) and the "Internet Platform Enterprise Tax-Related Information Reporting Provisions" is having a profound impact on the cross-border e-commerce sector. This is particularly evident after Amazon's public notification that it will quarterly report information related to Chinese sellers to the Chinese tax authorities, leading to many cross-border sellers receiving self-inspection notices from the tax authorities. This signifies that the new rules, through "information penetration" and "joint liability" mechanisms, have enabled the integration of tax authority data with internet platform data, fundamentally altering the tax regulatory logic for cross-border e-commerce export businesses. This article will analyze the tax challenges and response strategies faced by cross-border e-commerce from three dimensions: new regulations, risk identification, and compliance recommendations.Oct. 31, 2025, 4:18 p.m.
5096Views
