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Affiliated enterprises are required to pay back taxes and late fees of 480 million yuan due to low sales prices, and how to prevent tax-related risks in affiliated transactions?
1084ViewsApril 23, 2024, 5:29 p.m. -
Non-trading transfers to obtain the company's shares were audited, the holding platform to dismantle the tax-related risks to be concerned about
1129ViewsApril 17, 2024, 11:22 a.m.
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What are the tax risks of "reverse invoicing"? Lessons Learned from Agricultural Products Purchase Invoices
The State Administration of Taxation (SAT) proposed on April 9 at the "Symposium for Promoting Large-scale Equipment Renewal and Consumer Goods Trade-in" that "reverse invoicing" for resource recovery enterprises should be realized by the end of April, and stated: "Further smooth the VAT ded uction chain through the implementation of "reverse invoicing", and give resource recycling enterprises standardized and legal pre-tax deduction vouchers for enterprise income tax ". If the news of the above-mentioned symposium is accurate, will the reverse invoicing of renewable resources have the dual functions of VAT deduction and pre-tax deduction, thus realizing a similar system design as the current purchase invoices for agricultural products?1263ViewsApril 15, 2024, 5:18 p.m. -
Can a tax-related offence with a sentence of ten years or more seek a suspended sentence through criminal compliance?
On 15 March 2024, the Supreme People's Court (SPC) and the Supreme People's Procuratorate (SPP) issued the Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases of Endangering Tax Collection and Administration (Fa Shi [2024] No. 4). Surprisingly, the two high court judicial interpretations have made a major breakthrough in criminal compliance policy, completely dispelling the concern of whether the court system can and should apply criminal compliance in the field of tax-related crimes, and the importance of criminal compliance will be greatly enhanced. At the same time, the legal effect of applying criminal compliance to tax-related crimes is still in doubt, pending further improvement of the legislation. This paper will analyse the future application of criminal compliance in tax-related crimes in conjunction with the judicial interpretations of the two high courts, and put forward sugg1047ViewsMarch 28, 2024, 11:05 a.m. -
New tax-related judicial interpretations to combat "fake exports", new provisions or exacerbate the criminal risk of foreign trade enterprises transformed
The Interpretation of the Supreme People's Court of the Supreme People's Procuratorate on Several Issues Concerning the Application of Law in Handling Criminal Cases of Endangering the Administration of Tax Revenue (Legal Interpretation [2024] No. 4, hereinafter referred to as the Judicial Interpretation of 2024), which was formally implemented on March 20, has made major modifications to the behavioral elements and sentencing standards for tax-related crimes, especially the crime of obtaining export tax refunds fraudulently. Compared with the previous judicial interpretations and judicial practice, the new judicial interpretation has added tax fraudulent means such as "fraudulent use of other people's goods for export" and "circular export", and deleted the controversial provision of "four self and three missing". Generally speaking, the new judicial interpretation has made the regulations for export enterprises more strict and the crackdown on tax fraud more vigorous, which has led to a sharp increase in the criminal risk of export enterprises, but it has also made it clear that the path of compliance for entity enterprises is lenient, and the majority of export enterprises, especially foreign trade enterprises, should pay great attention to it.1797ViewsMarch 25, 2024, 1:08 p.m. -
Interpretation by Huashui: The latest judicial interpretation by the Supreme People's Court and the Supreme People's Procuratorate on tax evasion provisions balancing leniency and severity
On March 18, 2024, the Supreme People's Court and the Supreme People's Procuratorate announced the "Judicial Interpretation on Handling Criminal Cases Endangering Tax Collection and Management and Related Legal Issues." This interpretation made significant adjustments and modifications to the application rules of tax evasion offenses. The interpretations seamlessly integrate with the provisions of the Criminal Law regarding tax evasion, resolving the long-standing mismatch between judicial interpretations and criminal law provisions, and advancing to broaden the scope and targets of combating tax evasion. The interpretation adjusts the sentencing benchmarks for tax evasion offenses, clarifies the rule of pursuing criminal responsibility after administrative actions, raises the threshold for the criminalization of withholding obligors, highlighting a policy of balancing severity and leniency in criminal matters. While providing specific and clear guidelines for judicial practices concerning tax evasion offenses, certain updates in the interpretation, such as the denominator clause for taxable amounts, leave doubts, potentially increasing the criminal liability risks for taxpayers. This article will interpret in detail the provisions of tax evasion offenses in the judicial interpretations of the Supreme People's Court and the Supreme People's Procuratorate, analyze the legal application of tax evasion offenses, aiming to provide references for enterprises to prevent and respond to criminal risks related to tax evasion.1353ViewsMarch 22, 2024, 2:45 p.m. -
The Judicial Interpretation activates the crime of evading the recovery of tax arrears, and the criminal risk of tax defaulting enterprises threatens to explode
Under the influence of various economic factors both at home and abroad, some enterprises have defaulted on tax payment due to broken capital chain and tax non-compliance in the course of past operations. Many enterprises are struggling to maintain their business in the state of long-term tax arrears, and even the unlawful phenomenon of evading the recovery of tax arrears.2024 The Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases of Hazardous Tax Collection and Management promulgated by the Supreme People's Court and the Supreme People's Procuratorate on March 18th filled in the performance of criminal acts of China's criminal law on the crime of evading the recovery of tax arrears and activated the crime that has long been dormant, and the enterprises in tax arrears are afraid of facing severe criminal liability risks. are afraid of facing serious criminal liability risks. This paper takes the interpretation of the provisions of the Judicial Interpretation of the crime as an entry point, and analyzes the boundaries between law and lawlessness, crime and non-crime of tax-default enterprises in combination with cases, with a view to providing reference for the enterprises to prevent and cope with criminal risks.1721ViewsMarch 20, 2024, 10:52 a.m. -
With fictitious business and money flowing back, another spiritual work platform has been sentenced for fictitious opening!
Recently, a staff member of a flexible labor platform was found by the court to have committed the crimes of false VAT invoicing and false invoicing and was held criminally liable for accepting the instructions and arrangements of the platform and being responsible for docking with downstream companies and enterprises with invoicing needs to facilitate the business of false invoicing. With the development of flexible labor business in recent years, the urgency of tax compliance has become increasingly prominent. In practice, flexible labor platforms are often used as a tool for enterprises to make false invoices and evade taxes, with increasing risks. In view of this, this article takes this case as a guide and discusses issues such as insufficient inputs and common risky business of flexible labor platform for the benefit of readers.1356ViewsMarch 15, 2024, 5:26 p.m. -
Case Analysis: How Shareholders Deal with Tax Disputes under the New Company Law?
Previously, Huatax published an article titled "Case Analysis: How Shareholders Ensure Tax Compliance under the New Company Law," which elaborated on how shareholders can manage tax compliance risks through tax consultation, tax health checks, self-audits, and dealing with tax inspections. With the further escalation of tax risks, tax authorities may impose penalties on shareholders, hold them administratively responsible, or even refer them to public security authorities for criminal liability. Shareholders not only face significant financial burdens but also the possibility of imprisonment. Therefore, resolving tax disputes through dispute resolution mechanisms has become a crucial concern for shareholders. This case will analyze how shareholders can effectively deal with tax disputes through administrative penalty hearings, administrative reviews, administrative litigation, and criminal litigation, thereby mitigating shareholder tax risks.1706ViewsMarch 13, 2024, 6:49 p.m. -
Not Exceed the Principal Amount of Taxes
Recently, the latest People's Court case library made public a tax-related judicial decision case, the judgement made it clear that the tax late payment fee shall not exceed the amount of tax, which brought the long-disputed issue of whether the tax late payment fee can exceed the principal amount back to the public's field of view. There are views that the late payment fee is different in nature from that of the Administrative Compulsory Law, and that the provisions of the Tax Collection and Management Law should be applied, and that the judgement in this case is inappropriate. In view of this, this article intends to start from the case, analysing whether the tax penalty can exceed the principal for readers' reference.1237ViewsMarch 12, 2024, 10:48 a.m.