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Tax risk of pharmaceuticals industry escalates again as major cases of fraudulent opening of pharmaceuticals companies erupt in many places
Recently, "Safe Ulanhot" publicized a case of large-scale false invoicing in the field of pharmaceuticals. The Ulanhot Public Security Bureau investigated and found that more than 30 companies had frequently issued false VAT invoices for pharmaceutical manufacturers without actual business dealings. Ulanhot Municipal Public Security Bureau utilized the independently developed "five, three, four, four" method of false invoicing in the pharmaceuticals field and the "rapid identification of shell companies in the field of pharmaceuticals" data model to comprehensively analyze and evaluate the case, confirming that the actual shell companies involved in the case were as high as 1171 companies, involving an amount of 5 billion yuan. The case was fully analyzed and evaluated, and it was confirmed that the actual shell companies involved in the case were as high as 1171, involving an amount of 5 billion yuan. This is the second time that Ulanhot Public Security Bureau has successfully investigated a large-scale case of false invoicing in the pharmaceuticals field. As early as 2022, Ulanhot Public Security Bureau had successfully detected the shocking "7.22" medical field large false invoicing case, which involves 22 provinces across the country, a total of 47 suspects were arrested, the amount of money involved is up to 6 billion yuan.1046Views
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Analysis: the secret behind the use of red flush method to inflate the inventory data of refined oil module false invoicing
In March 2022, the Inspection Bureau of Xiantao Municipal Taxation Bureau received a piece of information on a major risk case source passed from the higher level. The information showed that three energy trading companies in Xiantao City, Company F, Company R and Company T, had inconsistent names of goods purchased and sold and were suspected of false invoicing. Inspectors of the three companies associated with the investigation found that there is a company named J company energy trading company and T company for the same address, the same time registered, and its situation is very similar to the above three companies, but also engaged in petroleum and related petrochemical products wholesale business, and there is a discrepancy between purchase and sale of goods and other cases.709Views
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Network freight industry should be alert to tax-related criminal risks
Editor's Note: Recently, the case of falsely issuing special invoices for value-added tax on the online freight platform of "Shen Shi Sheng Xin logistics platform", which has attracted much attention, ushered in the judgment of the second instance. The court of second instance changed the original crime of falsely issuing special invoices for value-added tax to the crime of illegally selling special invoices for value-added tax, which triggered many thoughts on the handling of tax-related cases on the online freight platform. This paper holds that the behavior of "paying invoices later" on the network freight platform does not constitute tax loss under the background of real transportation business, and should not be regarded as the crime of falsely issuing special VAT invoices, but it should not be punished as the crime of illegally selling special VAT invoices. If criminal responsibility needs to be investigated, the "late compensation" behavior of the platform is more suitable for the crime of false invoicing, which is more in line with the legislative purpose and legal interest protection principle of the crime.747Views
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Flexible Employment Platform Invoice Risk Escalation, Tax Compliance is Imminent
Editor's Note: By combing through cases in practice, there are two main types of business models for Flexible employment platforms, namely, the "Agent Invoicing" model, which controls the invoicing of enterprises in the park, or the "Self-invoicing" model, which directly invoices in its own name. However, whether it is the "Agent Invoicing" model or the "Self-invoicing" model, Flexible employment platforms are subject to greater tax risks, and can easily be considered by public prosecutors and law enforcement authorities as having committed crimes of false invoicing. In the context of the increasingly strict regulation of tax rebate policy and the gradual strengthening of the national authority's crackdown on tax-related crimes, how should Flexible employment platforms deal with the tax-related risks? This article will focus on two invoicing modes and comment on them from the perspective of tax law principles and practices.898Views
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Agreeing on "ticket points" in the renewable resources industry is legal and does not result in tax losses
Since the implementation of the value-added tax policy, in order to strengthen the comprehensive utilization of resources and protect the environment, China has given preferential tax policy support to enterprises engaged in the recycling and operation of waste materials, and has successively implemented preferential policies such as tax exemption, immediate refund, first levy and then return, and simple levy. Changes in policy have led to changes in the business model of enterprises. In the past, under the tax exemption policy, the industry did not need to bear the VAT, the design and construction of the transaction mode need not consider the tax factor, steel mills and other waste enterprises usually directly grasp the first-hand source of goods, from the local operation of the recycling of waste materials from the retailer to purchase. In the context of taxation, the sale of goods need to pay 13% value-added tax, but due to the general low willingness of the retailer to pay taxes on their own, not willing to declare taxes and issue invoices, resulting in the procurement of goods with the waste enterprises at the same time can not obtain legal and effective input credit and pre-tax deduction vouchers, which bear the overall sales of 13% of the tax burden, the emergence of a fundamental obstacle to the purchase of enterprises with the waste of the tax link, the first-hand The sourcing model fails to satisfy the demand of enterprises using waste to obtain input invoices.778Views
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Real estate developers' decision to waive the preferential tax policy for ordinary residential properties during land appreciation tax settlement has sparked controversy. What is the rationale behind
Since the implementation of the "Interim Regulations on Land Appreciation Tax," the preferential tax policy for ordinary residential properties has always been in effect: taxpayers who construct and sell ordinary standard residential properties, with the appreciation amount not exceeding 20% of the deductible project amount, are exempt from land appreciation tax. For real estate development enterprises, controlling the selling price and appreciation rate of ordinary residential properties can enjoy tax exemption incentives, provided that different types of real estate are accounted for separately as required. In practice, some real estate enterprises have found that abandoning the preferential tax policy for ordinary residential properties in the same project is more conducive to reducing tax liability, but subsequent disputes have arisen with tax authorities during the review of land appreciation tax settlement. This article will discuss this issue and provide suggestions for the readers.694Views
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After receiving the auction proceeds, who has priority: the mortgagee exercising the mortgage right or the tax bureau pursuing the unpaid taxes?
In recent years, the real estate industry has been experiencing an economic downturn, and real estate enterprises, serving as debtors and mortgagors, have simultaneously become tax debtors. On the one hand, when the debtor is unable to repay debts, the real estate mortgagee may have the priority to be compensated for the debts through discounted sale or auctioning or selling the mortgaged property, as stipulated in the Civil Code. On the other hand, after obtaining auction proceeds through the auction of real estate conducted by the people's court, it becomes possible for the tax authorities to pursue unpaid taxes and auction corresponding tax payments, thus creating a conflict between taxes and mortgage claims. So, what is the order of repayment for auction proceeds in such cases? This article will discuss the distribution order of auction proceeds between real estate mortgage rights and the state's tax collection rights to satisfy the readers' curiosity.1052Views
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For gratuitous borrowing is required to pay a huge amount of back taxes, qualitative tax evasion, related party funds lending should be how to prevent tax-related risks?
Capital financing is crucial to the normal operation of enterprises, in order to improve the efficiency of capital utilization, reduce financing costs, the situation of capital borrowing between related enterprises is more common, some groups of companies also through the establishment of capital pools to enhance the liquidity of internal funds, minimize the cost of external borrowing. From a tax perspective, the borrowing behavior between enterprises involves the recognition of interest income of one party and the cost of the other party, in order to prevent the use of capital borrowing between related parties for profit transfer, illegal cost deduction, the tax authorities are usually based on the principle of deemed sales or arm's length principle of the capital borrowing between related parties to make adjustments, and some enterprises have "one in and one out of a borrowing mode between related parties". Some enterprises have the improper understanding that "the lending mode between related parties does not involve tax obligations, and the gratuitous lending without obtaining actual income is not subject to tax", which leads to the consequences of paying back taxes, charging late fees and even characterizing tax evasion. This paper analyzes the pre-tax deduction of interest cost under interest-free lending between related parties and compensated lending and the tax risk of individual shareholder's borrowing from practical cases and puts forward preventive and responsive suggestions for readers' reference.2236Views