Flexible Employment Platform Tax Compliance Report (2024)

In recent years, with the development of Internet technology and national policy support for the platform economy and flexible labor industry, flexible labor platform, as a bridge connecting labor-using enterprises and flexible workers, has shown a booming trend. Relying on Internet information technology, flexible labor platforms have opened up information barriers between labor-using enterprises and talent resources, improved the efficiency of human resources allocation, and played a key role in promoting employment and safeguarding people's livelihood. In terms of taxation, the flexible employment platform also helps to solve the problem of employing enterprises not being able to issue invoices for employing enterprises due to the provision of labor services by individual workers in the course of their operations, reducing the tax costs of employing enterprises, and has gained the favor of employing enterprises.
However, as a new industry organization, flexible labor platform is still in a period of rapid development and imperfection, and the relevant national policies are also in the process of further follow-up, the strong regulatory trend in the field of taxation has appeared, and tax preferential policies, such as financial rebates, will be gradually cleaned up.2023 A number of suspected false invoicing cases of the flexible labor platform have erupted, which reflects the weak links existing in the business development and tax processing of the flexible labor platform. On the one hand, some flexible labor platforms have made their business and tax treatment process weak. On the one hand, some flexible labor platforms used the fiscal rebate tax policy as the capital for false invoicing, and wantonly issued false invoices to outsiders in order to make unlawful benefits such as handling fees, resulting in the loss of the national tax interests and disrupting the order of tax collection and management; on the other hand, some flexible labor platforms were oriented on business and profits and neglected the platform tax compliance construction, resulting in the loopholes and deficiencies of the business model, which were utilized by the lawless elements to commit false invoicing and other illegal criminal acts. On the other hand, some flexible labor platforms are business and profit oriented, neglecting the platform tax compliance construction, resulting in loopholes and deficiencies in the business model, which are used by unlawful elements to carry out illegal and criminal behaviors, such as false opening, and fall into criminal risks. Therefore, it is urgent for flexible labor platforms to strengthen tax compliance construction and prevent tax risks.
Based on the in-depth observation of flexible labor platforms, HuaShui team has prepared this "Flexible Labor Platform Tax Compliance Report (2024)". This report summarizes the development of flexible employment industry and flexible employment platforms, observes their tax policies and regulatory trends, focuses on typical tax-related cases of flexible employment platforms in 2023 and discusses the causes of tax-related risks, summarizes the main tax-related risks of flexible employment platforms and their manifestations, puts forward the key points of administrative response and criminal defense strategies on the basis of the aforementioned, and finally provides suggestions for the daily tax compliance management of flexible employment platforms. Finally, it provides suggestions for the daily tax compliance management of flexible employment platforms, hoping to contribute to the sustainable and healthy development of the flexible employment industry.
This report is divided into eight sections, with a total text of about 25,000 words.

Jan. 30, 2024, 1:52 p.m.

4508Views

Investment Promotion Tax Compliance Report（2024）

Investment promotion is an important path for local governments to use external resources to promote regional economic development, which is of great significance for promoting local employment, optimizing local industrial structure and expanding the scale of economic development. For a long time, to give investment enterprises tax incentives, financial incentives is a common way for local governments to attract investment, this kind of financial and tax support policies effectively alleviate some of the pressure on the capital turnover of enterprises, reduce the operating costs of enterprises, stimulate the vitality of the development of enterprises, which in turn boosted the development of the regional economy. However, in practice, there are some financial and tax incentives in violation of higher laws to give enterprises the phenomenon of tax rebates, some enterprises in the process of applying the policy of false opening, tax evasion and other issues.
For a long time, there are usually links in the business chain of resources recycling industry, logistics and transportation and flexible labor that run on local fiscal and tax incentives, and the approved levy policy in some regions has also become an important consideration in the design of enterprise equity structure and tax-saving arrangements for high net worth individuals. With the spread of clean-up and standardization of tax and other preferential actions, local illegal tax preferential policies have gradually contracted, and fiscal rebates have gradually become the main local fiscal and tax preferential policies. In recent years, illegal tax rebate behavior and tax puddles in some areas have triggered the attention of many departments. In January, the National Audit Work Conference put forward a six-pronged audit work, the second of which included "revealing in-depth the illegal introduction of 'small policies' in investment promotion in some places, Formation of 'tax depressions' and other issues, and seriously investigate and deal with irregular tax rebates"; Rao Lixin, deputy director of the State Administration of Taxation, also pointed out at a press conference held by the State Council Information Office on January 18, that tax-related issues in the context of investment promotion should be seriously investigated and dealt with. "The National Tax Work Conference also explicitly prohibits the participation of tax departments and tax cadres in cooperating with illegal investment promotion. With the normalization of the eight departments' joint action to rectify tax fraud and the comprehensive advancement of tax collection and management informationization and digitalization, the tax compliance problems in the field of investment promotion are facing a severe situation.
In the cases of false opening and tax evasion involving investment promotion and taxation policies that have broken out so far, the financial cadres of local governments, investment promotion platforms and investing enterprises are facing different degrees of legal liability. Huashui combines its continuous research on investment promotion and its experience in representing the latest tax-related cases to write this report, which analyzes in depth the tax environment of investment promotion under the new situation of tax collection and management, the business model of investment enterprises, the tax-related legal risks of each subject, and the tax compliance management, etc., with a view to providing useful references for the local governments, investment promotion platforms, and investment enterprises.

Jan. 29, 2024, 3:21 p.m.

3699Views

Tax Compliance Report in Investment and Financing (2024)

Along with China's economic development, the investment capacity of high net worth individuals (HNWIs) in Mainland China has strengthened. According to the China Private Wealth Report released by China Merchants Bank in 2023, as of 2022, the number of HNWIs in China reached 3.16 million, holding a total of RMB 101 trillion in investable assets, and corporate equity investment is also one of the main directions of HNWIs' cash outflow. However, direct shareholding by natural persons has a high tax burden, and individual investors are exploring other shareholding modes in order to reduce their tax burden. At this time, the shareholding platform, as a shareholding structure designed under the combined effect of local tax incentives and the stability of listed companies' shareholdings, has entered the vision of HNWIs and become an important tool for HNWIs' foreign investment. In recent years, with the tightening of tax regulation for HNWIs and the extensive and in-depth cleanup of local tax approvals and financial rebate policies for irregularities, the tax advantage of the shareholding platform is no longer available, and if the shareholding platform is not dismantled, it will face the situation that the tax burden for future equity transfers will not be reduced but rather increased, while the dismantling of the shareholding platform may immediately be burdened with a high level of tax. At the same time, HNWIs and their equity transfer behaviors have become an area of continuous attention and key investigation by tax supervision, and it has become a dilemma for HNWIs to dismantle or not to dismantle their shareholding platforms. In practice, it has been common for individual investors to dismantle their shareholding platforms, among which, the most common means of dismantling the shareholding platforms for HNWIs is to cancel the non-trading transfers of shares. However, this approach has also brought a lot of tax risks to HNWIs, which is evidenced by the cases of various back taxes and late payment liabilities penetrating into the shareholders and partners. In addition, the promulgation of the new company law on December 29, 2023 also has potential tax implications for individual investors through amendments to various aspects such as registered capital, governance structure, principal liability and establishment and exit.
The "Tax Compliance Report in Investment and Financing (2024)" is compiled by Hwuason based on the analysis and research of tax administration policies for HNWIs, combined with the tax-related typical cases in investment and financing that China Tax has been involved in in recent years, with the aim of revealing the major tax risk points of domestic investment and financing for HNWIs based on the characteristics of tax administration of HNWIs and putting forward targeted and feasible compliance suggestions on this basis, so as to Provide guidance and reference for the tax compliance of investment and financing business of HNWIs.

Jan. 24, 2024, 2:21 p.m.

2454Views

Non-Ferrous Metal Industry Tax Compliance Report (2024)

Non-ferrous metals are essential raw materials in fields such as electronics, aviation, automotive, and construction, playing a crucial role in economic and defense development as well as societal progress. In the realm of taxation, the non-ferrous metal industry has witnessed a surge in tax-related cases in recent years. Issues related to taxation in the buying, selling, and transportation of non-ferrous metals have become increasingly prominent, giving rise to numerous tax compliance challenges.

Within the buying and selling transactions of non-ferrous metals, some suppliers, particularly retail ones, are either unwilling or unable to issue value-added tax (VAT) special invoices. This results in non-ferrous metal enterprises struggling to obtain input invoices. In order to bridge this gap and obtain valid pre-tax deduction certificates for corporate income tax, some companies resort to methods such as operating under the umbrella of another business, seeking third-party invoice issuance, or even purchasing invoices. As the "anti-fraud and anti-deception" special campaign intensifies and transforms into a routine effort jointly undertaken by eight government departments, the non-ferrous metal industry has witnessed a surge in cases of fraudulent invoicing, exposing companies and their executives to administrative and even criminal liabilities.

Due to the high transportation costs associated with non-ferrous metal transportation, the industry has adopted a trading model of "unified warehousing and delivery at the end." However, as no actual goods transportation occurs in the intermediary stages, this model is prone to being deemed as lacking genuine goods transactions, thereby triggering risks of fraudulent invoicing.

Furthermore, in recent years, tax authorities in various regions have conducted special inspections on gold invoices, uncovering numerous cases of fraudulent issuance. In these cases, individuals involved in the fraud use aliases to fraudulently issue non-ferrous metal invoices. Due to the chain-like deduction features of value-added tax, the risk of fraudulent invoicing is transmitted downstream to non-ferrous metal enterprises.

In terms of judicial practice, publicly disclosed cases of fraudulent invoicing in recent years have included instances where non-ferrous metal companies were charged with the illegal purchase of VAT special invoices despite obtaining genuine invoices through honest means. There have also been cases where the issuance of fake invoices for loan fraud was deemed as not constituting fraudulent invoicing. As the reform of criminal compliance mechanisms by procuratorates is rolled out nationwide, and courts in various regions initiate compliance pilot programs during the trial phase, these developments and changes in judicial practice present new opportunities for non-ferrous metal enterprises involved in tax-related criminal defenses.

Based on our in-depth observation of the non-ferrous metal industry and our experience in handling tax-related cases, this report is crafted by Huashui to thoroughly analyze the tax environment for the non-ferrous metal industry under the new situation of tax administration. We compile and analyze tax-related criminal and administrative cases involving non-ferrous metal enterprises from 2018 to 2023, revealing the current status, causes, and latest changes in tax-related criminal risks for the non-ferrous metal industry. Building upon this analysis, we provide compliance management suggestions for enterprises, aiming to assist non-ferrous metal companies in conducting tax management legally and compliantly, strengthening internal risk control and external risk isolation, and effectively addressing and mitigating tax-related legal risks.

Jan. 22, 2024, 2:47 p.m.

2153Views

Tax Compliance Report for High Net Worth Individuals（2024）

Along with China's economic development, the number of High Net Worth Individuals (HNWIs) in Mainland China continues to grow. According to the China Private Wealth Report 2023 published by China Merchants Bank, "HNWIs" are defined as individuals with investable assets of RMB 10 million or more. Investable assets include cash, deposits, stocks, bonds, funds, insurance, bank wealth management products, offshore investments and other domestic investments and investment properties, excluding owner-occupied properties. By 2022, there will be 3.16 million HNWIs in China, holding a total of RMB 101 trillion in investable assets. In terms of the types of people, HNWIs mainly include private entrepreneurs, executives of central enterprises, state-owned enterprises, large private enterprises, technical backbone personnel, film and television personnel, net celebrities and head self-media personnel, sports industry practitioners, personnel in high-paying industries such as finance, professional managers, and those who have access to hold a large amount of money due to family connections. With the rapid growth in the number of HNWIs in Mainland China, who can utilize the large amount of investable assets they hold for personal investment, and at the same time have generally higher salary income, HNWIs need to bear a heavier tax burden, and there is an increasing demand for tax saving through tax planning, coupled with the cross-regional and international nature of the distribution of their wealth and sources of income, there are various forms of planning by HNWIs. At the same time, tax authorities around the world have tightened their control over individual income tax, and HNWIs have become the focus of continuous attention and investigation by tax regulators. In practice, there are many cases of HNWIs being tax adjusted or recognized as tax evaders.
HNWI Tax Compliance Report (2024) is compiled by Hwuason based on the analysis and research of tax administration policies for HNWIs, combined with the typical tax-related cases of HNWIs that China Tax has been involved in in recent years. The report aims to provide guidance on tax compliance for HNWIs based on the characteristics of HNWIs' tax administration and reveals the major tax risk points of HNWIs both at home and abroad, and on the basis of which it puts forward targeted and feasible compliance suggestions.

Jan. 19, 2024, 2:35 p.m.

3742Views

Logistics and Transportation Industry Tax Compliance Report（2024）

The logistics industry integrates transportation, warehousing, freight forwarding, intermodal transportation, manufacturing, trade and information industries. Among them, transportation is one of the key links in logistics, and the integration of logistics and transportation forms the logistics and transportation industry, which plays an important role in promoting the development of national economy. And road transportation plays a fundamental role in the logistics and transportation industry with its advantages of strong adaptability, mobility and flexibility, fast and direct access. With the in-depth integration of mobile Internet technology and the logistics and transportation industry, the market has emerged as a new business model such as car-free transport, network freight, etc., which relies on mobile Internet technology to build a logistics information platform, and effectively promotes the ability of resource integration through the innovation of the management and organization mode, and promotes the transformation and upgrading of the logistics and transportation industry. At the same time, the basic form of transportation, which is "zero, scattered, small and weak", remains unchanged, the proportion of individual drivers is high, and the VAT deduction chain of logistics and transportation industry is broken, which still restricts its further development. In order to effectively reduce the tax burden, the State Administration of Taxation (SAT) has successively issued the State Administration of Taxation Announcement No. 30 of 2017, the State Administration of Taxation Announcement No. 55 of 2017 and other policies to respond to the voices of the taxpayers and solve the pain points of the industry, but it still hasn't fundamentally solved the persistent problem of insufficient input deduction in the logistics and transportation industry.
Some logistics and transportation enterprises chose to reduce VAT and EIT by outsourcing invoices or applying for fiscal rebates, thus triggering the risk of tax evasion and false invoicing, with a wide range of implication and impact.2023 A number of cases of external false freight invoicing by means of falsely opening oil and gas invoices, ETC invoices, etc., broke out again. In addition, the new industry such as network freight transportation and non-vessel shipping also broke out with large cases of false invoicing, and the risk was spread to tens of thousands of enterprises downstream, triggering industry shocks. There is an urgent need to strengthen tax compliance in the logistics and transportation industry to prevent tax risks.
Based on the in-depth observation of the logistics and transportation industry, Huashui Team has prepared this "Logistics and Transportation Industry Tax Compliance Report (2024)". This report summarizes the development of the logistics and transportation industry, observes its tax policies and regulatory trends, focuses on typical tax-related administrative and criminal cases in the logistics and transportation industry in 2023, discusses the causes of tax-related risks in the logistics and transportation industry, summarizes the major types of tax-related risks in the logistics and transportation industry and puts forward the key points of defense on the basis of the foregoing, with the hope of contributing to the construction of tax compliance in the logistics and transportation industry.
This report is divided into eight sections, and the full text is about 26,000 words.

Jan. 17, 2024, 2:07 p.m.

4071Views

Coal Industry Tax Compliance Report(2024)

Introduction

The characteristics of China's energy resources, with abundance in coal, scarcity in oil, and limited natural gas, have shaped a predominant energy consumption structure centered around coal. Coal, as a fundamental energy source in China, accounts for over half of the energy consumption and holds a crucial strategic position in the national economy. In the realm of taxation, recent years have witnessed diverse and multi-stage tax risks in the coal industry. Tax-related issues during the operation of coal enterprises have become increasingly prominent, leading to numerous challenges in tax compliance.

Against the backdrop of coal mining quotas, coal enterprises often resort to off-the-books operations to sell coal extracted beyond the allocated quotas. Downstream coal trading enterprises, when purchasing coal from these enterprises, face challenges in obtaining value-added tax (VAT) special invoices for VAT input deduction and as evidence for corporate income tax prepayment. Simultaneously, the frequent mergers and acquisitions in the coal industry in recent years have limited the quantity of coal that trading enterprises can purchase from officially authorized large mines within the quotas. To meet the coal demand of downstream enterprises, coal trading companies are compelled to procure over-quota coal from small mines, intensifying the invoicing challenges in the coal industry due to macroeconomic fluctuations. In an attempt to address the insufficient deduction of input invoices, some coal enterprises have revamped their business models, utilizing methods such as affiliation and outsourced invoicing to obtain input invoices. However, due to the diversity and complexity of these models, coupled with differing interpretations by tax authorities, there is a significant risk of false invoicing. With the intensification and institutionalization of the "anti-fraud and anti-deception" special campaign, the coal industry has experienced a surge in cases involving fraudulent invoicing and tax evasion. Companies and their executives face administrative and even criminal liabilities.

Beyond invoicing issues, the coal industry has witnessed numerous cases of resource tax evasion during the extraction process, consumption tax evasion during processing, and income tax evasion during equity changes in recent years. The tax risks in the coal industry are gradually extending to multiple stages and tax types.

In judicial practice, publicly disclosed cases of coal enterprises engaging in fraudulent invoicing in 2023 reveal instances where recipient enterprises were penalized for tax evasion without being referred to public security authorities, as well as cases where retrials resulted in acquittal for circular invoicing and counter-invoicing behaviors. As the nationwide reform of the criminal compliance mechanism by the procuratorate unfolds, several local courts are conducting compliance pilot programs during the trial phase. These changes present new opportunities for legal defense in tax-related criminal cases in the coal industry. Based on these developments and our extensive observation of the coal industry, as well as our experience in representing coal enterprises in tax-related criminal cases, Huatax has prepared this report. The report delves into the tax environment of the coal industry under the new tax administration situation, consolidates the latest tax-related criminal and administrative cases involving coal enterprises in 2023, elucidates the current status, causes, and recent changes in tax-related criminal risks in the coal industry. Furthermore, based on this analysis, the report provides recommendations for enterprise management compliance, aiming to assist coal enterprises in proactively managing tax risks, strengthening internal risk control and external risk isolation, and effectively addressing and mitigating tax-related legal risks.

Jan. 15, 2024, 2:11 p.m.

3486Views

Pharmaceutical Industry Tax Compliance Report (2024)

Pharmaceutical industry refers to the research and development, production and sales of pharmaceutical products such as biological drugs, chemical drugs and traditional Chinese medicines. The upstream participants of the pharmaceutical industry chain include manufacturers of pharmaceutical raw materials such as basic chemical materials, animal and plant materials, and medicinal excipients; the midstream subjects of the industry chain are pharmaceutical R&D, production and sales enterprises; and the downstream subjects of the industry chain are the pharmaceutical sales terminals, which mainly include medical aesthetics, health service organizations, retail pharmacies, hospitals, and primary healthcare terminals, etc, and ultimately reach the consumers. With the accelerated aging of the population, people's health awareness, the growing demand for medical care, China's pharmaceutical industry is in a golden period of rapid development. According to statistics, since the "14th Five-Year Plan", China's pharmaceutical industry, the average annual growth rate of income from main business is 9.3%, the average annual growth rate of total profit is 11.3%, the industry continues to improve the scale of efficiency. On the one hand, this is related to the gradual stabilization of the pharmaceutical industry's "two-ticket system" and other policies, and on the other hand, thanks to the support of the policy environment, such as the "Healthy China 2030" Outline of the Plan. However, the rapid development of the pharmaceutical industry also hides hidden worries.

For a long time, in the field of purchase and sale of medicines, the problem of low efficiency and high cost of drug transportation and distribution persists, and at the same time, it faces the problem of corruption such as doctors and medical representatives accepting kickbacks, and pharmaceutical enterprises "selling with gold", which forms an interlocking grey chain, and the profits of pharmaceutical enterprises are further compressed due to rebates and kickbacks, and thus become Pharmaceutical industry false opening, tax evasion behavior repeated motive. The "two-ticket system" reform and the "4+7" centralized purchasing model seek to eliminate the problem of excessively high drug prices caused by multiple distribution links in the past from the sales chain of pharmaceutical enterprises, but because the existing distribution of benefits and drug distribution model has not been completely changed, the costs of pharmaceutical enterprises remain high and have begun to rise. However, due to the lack of radical changes in the distribution of benefits and the drug distribution model, pharmaceutical enterprises, with high costs, have started to extract funds through bills from other areas such as drug production, marketing and advertising, resulting in the invoice violations in the pharmaceutical industry, which remains a serious problem.20 With a number of cases of false invoicing in the pharmaceutical industry erupting across the country since 2023, the pharmaceutical industry is in urgent need of strengthening tax compliance to prevent tax risks.

Based on the in-depth observation of the pharmaceutical industry, HUASHUI Team has prepared this "Pharmaceutical Industry Tax Compliance Report (2024)". This report focuses on the development trend and tax regulation of the pharmaceutical industry, focuses on the typical tax-related cases in the pharmaceutical industry in 2023 and the practice of non-prosecution compliance system in the pharmaceutical industry, analyzes the causes of tax-related risks in the pharmaceutical industry, summarizes the main types of tax-related risks in the pharmaceutical industry on the basis of the aforementioned and puts forward targeted suggestions to deal with them, with the hope of contributing to the construction of tax compliance in the pharmaceutical industry.

This report is divided into eight sections, and the full text is about 25,000 words.

Jan. 12, 2024, 2:07 p.m.

5898Views

Land Value Added Tax (LVAT) Compliance Report for the Real Estate Sector (2024)

Since the beginning of 2018, tax authorities across the country have begun large-scale bidding and procurement of land value-added tax clearing and auditing services from third-party intermediaries. After the merger of state and local taxes, a large number of real estate projects across the country have reached the liquidation conditions and need to be processed for land value-added tax clearance, ushering in a batch of centralized liquidation. Due to the poor fiscal management of many real estate enterprises prior to the liquidation of the project, the cost of land value-added tax liability for active liquidation was abnormally high, which to a certain extent resulted in the low motivation of real estate enterprises to take the initiative to liquidate. In recent years, the real estate market is no longer as prosperous as it was before 2020. Under the influence of the economic downtrend, local governments objectively have the demand to accelerate the liquidation of land value-added tax. Local governments are not only promoting the liquidation of real estate projects that meet the conditions for liquidation as soon as possible, but also strengthening the collection and management through the application of tax big data. Against this backdrop, a large number of real estate enterprises are caught in tax arrears and face severe land VAT risks.
Land Value Added Tax (LVAT) Compliance Report for the Real Estate Sector (2024) is a legal research report compiled based on Hwuason's in-depth observation of the real estate industry and profound summarization of its experience in representing land value-added tax (LVAT) cases in the real estate industry, aiming to reveal the current situation of land value-added tax (LVAT) cases in the real estate industry and trends of investigation, to bring together and consolidate the focuses of LVAT settlement-related tax-related disputes, to analyze the risk of land value-added tax (LVAT) in the real estate industry and to put forward professional strategies of resolving tax-related disputes and proposals of complying with the operation, with a view to providing useful guidance for real estate enterprises in preventing and responding to the risk of land value-added tax.

Jan. 11, 2024, 1:11 p.m.

4177Views

《Resources Recycling Industry Tax Compliance Report》（2024）

The orderly operation of the resources recycling industry is of great significance in improving the level of resource recycling, enhancing the ability of resource safety and security, and promoting green, low-carbon and recycling development. In terms of taxation, the policies in the field of recycling and comprehensive utilization of renewable resources are constantly changing, and in order to promote compliant operation and increase profit margins, the business model of the resources recycling industry is constantly adjusted, which is accompanied by a number of tax compliance issues.
In 2008, the State Administration of Taxation (SAT) issued the Circular on Value-added Tax Policies for Renewable Resources (Caishui [2008] No. 157), which abolished tax exemption and deduction policies for renewable resources recycling industry. The tax burden of renewable resources recycling enterprises has increased dramatically, and the problem of invoices for waste enterprises has been highlighted again. In order to make up for the shortfall of input items and obtain compliant pre-tax deduction vouchers for enterprise income tax, some enterprises obtained VAT invoices by changing their business model, seeking third-party issuance or even purchasing them. With the further development of the campaign against tax violations, a large number of cases of false VAT invoices have erupted in the resources recycling industry, and the enterprises and their persons-in-charge have been facing administrative and even criminal liabilities.
In order to promote the sustainable and healthy development of the resources recycling industry, the State Administration of Taxation (SAT) issued the Announcement on Improving VAT Policies for the Comprehensive Utilization of Resources on December 30, 2021, which clarifies that general VAT taxpayers engaging in the recovery of recycled resources can choose to apply the simplified tax calculation method to calculate the VAT payment in accordance with the 3% levy rate for the sale of recycled resources they have acquired, and clarifies that fiscal refund should be strictly regulated.Circular No. 40 alleviates to a certain extent the problem of excessive VAT burden of the enterprises engaged in recycling of renewable resources, but has not yet effectively responded to the issue of the vouchers for deduction of pre-tax deduction of EIT.
In terms of judicial practice, during the handling of criminal cases of false invoicing by recycling industry enterprises in the past two years, there have been cases in which the invoiced enterprises have been punished for the crime of illegally purchasing VAT invoices; the reform of criminal compliance mechanism of the procuratorate has been pushed forward nationwide, and the courts of many places have carried out compliance pilots at the trial stage, and the above changes have brought a new opportunity for the defense of tax-related criminal cases in recycling industry. Based on this, in order to enable the majority of enterprises in the resources recycling industry to carry out tax management in a compliant and legal manner, strengthen internal risk prevention and control and external risk isolation, and effectively cope with and resolve tax-related legal risks in their future business operations, Huashui combines the continuous research of the resources recycling industry with the experience of acting in the latest tax-related cases to write this report, which provides an in-depth analysis of the tax environment of the resources recycling industry under the new situation of tax levy and administration, causes of the tax risks, major tax risks and their manifestations, key points of dispute and defense in the criminal case of false invoicing, as well as the management of tax compliance. This report analyzes the tax environment of the recycling industry under the new situation of tax administration, the causes of tax-related risks, the main tax-related risks and their manifestations, the focus of disputes and key points of defense in criminal cases of false invoicing, as well as the management of tax compliance, with a view to providing useful references and reference for enterprises in the resources recycling industry.

Jan. 8, 2024, 4:04 p.m.

4085Views