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Another Massive Tax Evasion Case Involving Celebrities and Online Streamers Emerges: What are the Tax Evasion Methods and Associated Risks in the Entertainment Industry?
Recently, several celebrities and online streamers have once again found themselves embroiled in the controversy of tax evasion. Many of them have been reported, fined, and some have even faced tax penalties for the second time. People's Daily commented, "Tax evasion is inexcusable, and ignoring the law will lead to dire consequences." Why does tax evasion occur frequently in the online entertainment industry? Why do some individuals still harbor illusions of luck? Where exactly do the tax risks lie in the online entertainment industry? This article will combine with the tax authorities' reports on tax evasion cases involving celebrities and streamers, summarize and analyze common tax evasion methods in the online entertainment industry, with the aim of providing suggestions for the path of tax compliance in the online entertainment industry and its practitioners.Nov. 16, 2023, 8:42 p.m.
1608Views
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Title: Tax Controversies in Personal Shareholders Signing Earn-out Agreements
Earn-out agreements, also known as valuation adjustment agreements, possess characteristics of investment risk control and incentives for mid-to-senior-level management. They have gained favor among a significant number of capital market investors and are increasingly prevalent in business transactions. However, due to the current lack of specific tax regulations addressing the income tax issues related to earn-out agreements, a considerable number of tax problems and cases have arisen in practice. This article focuses on the individual income tax issues arising from earn-out agreements, including the determination of the taxation timing, the application of individual income tax deferral policies, and the tax and refund differences resulting from the application of "separate tax treatment" and "consolidated tax treatment."Nov. 16, 2023, 8:30 p.m.
1822Views
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Taxation by case: the boundaries of the exercise of the right of tax subrogation
Article 50 of the Tax Administration Law stipulates that the tax authorities may, under certain circumstances, exercise the subrogation right in accordance with the relevant provisions in the civil field for the recovery of taxes. Tax subrogation system is a private law concept in the field of tax law, its application in addition to follow the general provisions of civil law, but also need to consider the special circumstances of the field of tax law. This article starts with a case of tax assumption and tax payment of tax charter agreement to analyze the dispute and application of tax subrogation right in practice.Nov. 16, 2023, 8:27 p.m.
2176Views
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Several cases of irregular tax intermediary planning have been punished; it is urgent to standardize professional tax services
Recently, a certain tax intermediary engaged in irregular planning, obtaining a substantial service fee without declaring taxes, and was fined four times the amount. The person in charge received a fivefold fine for submitting false tax declarations, emphasizing the gravity of the responsibility. Tax intermediaries refer to entities that, upon request, provide tax-related services such as tax representation to clients using their professional knowledge and skills. With the introduction of various regulatory requirements and industry standards in this field, practitioners in this industry urgently need to address issues such as providing irregular tax planning services, disseminating false advertising and promotional information, and distorting the interpretation of tax policies. It is crucial to standardize professional practices and enhance tax compliance. This article aims to analyze common forms of irregular tax intermediary planning, revealing the associated tax risks.Nov. 16, 2023, 8:02 p.m.
1768Views
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Are prepared wines and medicinal wines also subject to excise duty on liquor? Where are the boundaries for the application of excise tax on liquor?
For the consideration of national health, China levies consumption tax on alcohol and regulates the market by applying different tax rates to different kinds of alcohol. Previously, there were problems such as confusion in the collection of excise tax on prepared wines in some areas, and some wineries, in order to avoid the excise tax, adopted the method of changing "white wine" into "prepared wines" to reduce the tax burden, which resulted in the market chaos, and for this reason, the state issued a number of regulations to rectify the situation. However, due to the differences in the interpretation and understanding of the regulations by tax authorities around the world, the application of the regulations has been controversial. In this paper, the main controversial focus of the consumption tax on prepared wine and medicinal wine is systematically explained in China's consumption tax on prepared wine and medicinal wine for readers' reference.Nov. 16, 2023, 8:02 p.m.
3200Views
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Invoicing by means of "separation of goods", the introducer was convicted of illegal purchasing.
As the regulation of the refined oil industry tends to be digitalized and intelligentized, the trading of refined oil products has given rise to a variety of new forms through the inclusion of retail subjects such as gas stations that do not carry invoices for purchases and sales or that have a surplus of input invoices into the trading chain. This article intends to analyze the boundaries between false invoicing and illegal purchasing in a case in which the invoiced enterprise obtained invoices for offsetting inputs by separating the invoices from the goods and the introducer was qualified as an illegal purchaser, and to discuss the tax risks of the invoiced enterprise and the actual oil purchasing body in the case on the basis of this analysis.Nov. 16, 2023, 6:44 p.m.
2649Views
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Downstream enterprise confirms genuine transaction, upstream tax office withdraws Notice of Confirmed Fraudulent Opening
Recently, a case of withdrawn Notification of Proven False Openings has triggered a wide debate. Proven single plays an important role in invoice violation cases, which safeguards the realization of the state's tax claims, but the problems of risk transfer and double taxation brought by it have also made it highly questionable. In practice, the application of certified single has become more and more common, how to deal with the tax risk of certified single has become a topic that enterprises have to study. This article starts from the case of withdrawal of certificated document, elaborates on the legal consequences and actionability of certificated document, and provides three specific measures to deal with the tax risk of certificated document.Nov. 16, 2023, 6:33 p.m.
3195Views
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Supreme Court replies to clarify the legal relationship of flexible labor, platform compliance development must guard against tax risk
Flexible labor platforms have always been accompanied by various types of tax-related risks in their practical development, which have more or less hindered the healthy development of the platforms. Specifically, the risks can be categorized into three types: the risk of false invoicing; the risk of helping tax evasion; and the risk of failing to withhold taxes in accordance with the law. Recently, the Supreme People's Court responded to the "Proposal on Further Improving the Rule of Law on New Employment Patterns" put forward by members of the Chinese People's Political Consultative Conference (CPPCC) during this year's National People's Congress. The reply put forward the reference standard of "dependent + elemental", which provides a reference for distinguishing remuneration for labor services from business income. In addition, this paper analyzes the current observed cases of platform fraudulent opening, with a view to providing a direction for the tax compliance of spiritual labor platforms and helping the healthy development of new employment patterns.Nov. 16, 2023, 6:16 p.m.
2750Views
