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Supreme People's Court, Supreme People's Procuratorate These coal industry cases convicted of false VAT invoices can be actively appealed after the introduction of the judicial interpretation
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Masks, durian into steel, coal? Customs payment letter in the name of false opening in the fight against "three false" action "resurgence"
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Enterprises purchasing raw coal with tickets and then selling it off the books to evade taxes, and their ticketed behavior was even charged with the crime of false invoicing?
Due to the existence of the quota system, the phenomenon of coal trading enterprises purchasing goods without invoices from small coal kilns is more common, for this part of the "dry goods" without invoices, coal trading enterprises often obtain invoices from a third party, and the invoices correspond to the goods sold by the third party or sold by the coal trading enterprises to those who don't need invoices. The goods corresponding to the invoices are then sold by the third party itself or sold by the coal trading enterprise to individual households that do not need invoices to recycle funds. For this kind of behavior, from the perspective of the third party is the separation of invoices and goods, while from the perspective of the coal trading enterprise is "according to the fact on behalf of the invoice". In the current judicial interpretations, the "actual invoicing" does not constitute false invoicing, but in practice, there are different characterizations of such behavior by coal trading enterprises. In this article, Huatax will analyze with readers how such behavior should be characterized through a case of suspected false opening by a coal trading enterprise.1282Views
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Coal enterprises will be rich in tickets issued to the input insufficient enterprises for the sale of raw coal without tickets to match the ticket, necessarily established false invoicing crime?
The coal industry is an industry with a high incidence of tax-related risks. Compared with other industries, the tax-related risks of coal enterprises have certain special characteristics, which are manifested in the fact that coal enterprises have both the problem of insufficient inputs and the problem of surplus inputs. This is because the coal trade industry chain is long, for the source end of the small coal kilns to buy coal trading enterprises, due to the small coal kilns over-mining and other issues can not issue invoices, the coal trading enterprises will be insufficient inputs. As for the trading enterprises selling coal to scattered consumers at the terminal, because consumers do not need invoices, the coal trading enterprises will have the problem of surplus tickets. How to deal with the two kinds of tax-related risks when they occur at the same time deserves further study.1306Views
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More than 20 companies launch criminal compliance rectification after a series of cases of coal false starts erupted in a Shanxi province
Corporate criminal compliance is an important criminal dispute resolution mechanism that is currently being promoted nationwide, with the aim of safeguarding economic operations, guiding well-run enterprises onto the path of legal compliance through compliance and rectification, and mitigating and bridging the adverse impact and consequences of corporate crime. The procedure can be widely applied in many fields, especially in coal such as the industry's own inherent reasons, coal enterprises are forced to fall into the tax-related criminal risk, through criminal compliance can save the enterprise, stabilize the development of the industry, with positive significance. This time, the Shanxi Provincial Procuratorate announced a batch of cases in which the criminal compliance procedure was applied to the "truthful opening" of coal enterprises, which is of typical significance. Accordingly, this paper discusses criminal compliance and defense strategies for readers' reference.1295Views
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Coal transportation company accused of issuing $110 million in false promissory notes, court rules against false invoicing offense!
As China's road transportation is mainly carried out by individual carriers, the transportation costs incurred in the purchase and sale of coal cannot obtain sufficient deduction invoices, and in the long run, coal trading enterprises and coal-using enterprises cannot bear the burden of enterprise income tax and value-added tax brought about by this. In order to solve the invoice problem brought by the above situation, most of the coal trading enterprises and coal-using enterprises choose to obtain VAT invoices through a third party, which in turn leads to the risk of false invoicing. Recently, a coal transportation enterprise represented by Huatax lawyers was suspected of the crime of false invoicing of VAT, and the public prosecutor accused the party involved in the case of false invoicing of price and tax amounting to RMB 110 million, and prosecuted the party for the crime of false invoicing of VAT, and the party faced a penalty of more than ten years. Huatax lawyers intervened in the case after the public prosecution authority transferred the case to the court for trial, and provided first instance defense services for the case. After many communications with the court, by elaborating the defense views on the industry characteristics of coal transportation business, the constitutive elements of the crime of false VAT invoice and the crime of illegal purchase of VAT invoice, the transaction substance of coal transportation case, etc., the court finally accepted the defense opinions of the lawyers, and changed the verdict to the defendant constituting the crime of illegal purchase of VAT invoice, and sentenced the first defendant to two years of fixed-term imprisonment. The decision of this case is another benign exploration of judicial practice on the constituent elements of the crime of false invoicing, and the result is of great significance for the similar cases being heard in the coal industry.1315Views
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Thousands of people have been caught in the net and 40 billion dollars have been recovered! Inner Mongolia coal field tax-related crime circle exposure
On May 26, 2021, the leading group of the Inner Mongolia Party Committee and government's special rectification work for irregularities and violations in the field of coal resources summarized the concentrated investigation of coal-related corruption cases. Coal-related corruption backtracked for 20 years, and over the past year the region's discipline inspection and supervision organs have accepted nearly 4,000 cases involving coal-related issues, arrested nearly 1,000 people involved in coal-related criminal offenses, and recovered more than 40 billion yuan of accumulated losses. This special action, focusing on the rectification of illegal and unlawful access to coal resources, selling coal resources, illegal and unlawful allocation of coal resources, in the process of investigating and dealing with official corruption in the illegal mining behavior is frequently exposed, and then dig out the coal enterprises tax evasion, false opening cases, coal enterprises involved in tax criminal risk by implication and the full eruption. In the criminal circle of "corruption - illegal mining - tax evasion - false opening", how to prevent, control and cope with the tax-related criminal risk of coal enterprises? How to prevent, control and cope with the risk? This article will put forward relevant suggestions for coal enterprises' reference.1784Views
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Coal firms falsely billed 74.41 million without a single solid conviction, explaining the five major defense strategies for false billing
The coal industry is a high risk area for tax-related risks. In the past, due to the proliferation of small coal kilns for illegal coal mining, the mined coal could not be sold through normal channels, and enterprises purchasing coal invoiced through a third party. In recent years, with the deepening of the policies of removing production capacity, accelerating energy transformation, and promoting environmental protection, coal production capacity has begun to be controlled around the world, and coal-using enterprises purchasing over-mined coal need to look for a third party to issue invoices. The demand for invoicing has given rise to the invoicing industry, and some senior executives of state-owned coal purchasing and marketing enterprises have used the qualifications of state-owned enterprises to engage in invoicing for the purpose of falsely increasing their performance, which has triggered the risk of false invoicing.1316Views
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Low prices in coal-related transactions, the tax bureau demanded more than 300 million yuan in retroactive corporate income tax and value-added tax payments
The tax-related issue of connected transactions has always been a complex issue, and its complexity is reflected in the lack of clarity in the national regulations on the one hand, which is prone to produce different understandings in practice and lead to tax-related disputes; on the other hand, it is reflected in the tax enforcement process of the local tax authorities, which is inconsistent with the caliber of the implementation of the localities. According to Article 36 of the Law on Administration of Tax Collection, the business transactions between an enterprise or a foreign enterprise's organization or place established in China that is engaged in production or operation and its affiliates shall be charged or paid in accordance with the business transactions between independent enterprises; and if the tax authorities have the right to make reasonable adjustments if the business transactions between independent enterprises are not charged or paid in accordance with the business transactions between independent enterprises and the taxable income or income is reduced, the tax authorities shall have the right to make reasonable adjustments. The tax authorities have the right to make reasonable adjustments. Based on the complex transaction situation between related enterprises, whether and how to adjust has become a matter of great concern to enterprises. In this paper, we will introduce a real case to analyze the tax adjustment of related enterprise transactions.1388Views
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Two Major False Invoicing Risks Faced by the Coal Industry and Response Strategies
Due to the scarcity of coal resources, each coal mine operates in a seller's market. As a result, coal trading enterprises and coal-consuming businesses often struggle to obtain sufficient value-added tax (VAT) special invoices during procurement. Additionally, given the prevalent use of individual transport capabilities in China's road transportation, the transportation costs incurred in coal buying and selling transactions cannot acquire adequate invoice documentation. Over time, this situation has led to challenges for coal trading enterprises and coal-consuming businesses in managing the associated corporate income tax and VAT burdens.To address these issues, many coal trading enterprises and coal-consuming businesses opt to obtain VAT special invoices through third-party channels, thereby triggering the risk of false invoicing. Currently, numerous cases of false invoicing involving coal enterprises have erupted nationwide. In the context of ongoing collaborative efforts by tax authorities to combat tax fraud, continuous upgrades and optimizations of the Golden Tax Phase III system, and the increasing intelligence of data-driven comparisons, tax and judicial authorities are managing invoices in a more real-time fashion.In response, coal enterprises should conduct regular self-assessments to promptly identify potential tax risks. Simultaneously, when dealing with ongoing cases of false invoicing, attention should be paid to understanding the nature of transactions from both the formal and substantive aspects.1903Views