-
Amid the Crackdown on the "Invoicing Economy", SOEs Drawn into Circular Trade Are Caught in a Back-Tax Dilemma Arising from Fictitious Input and Output
Nov. 4, 2026, 3:54 p.m.
1716Views
-
Draft Amendment to the Law of the People's Republic of China on the Administration of Tax Collection Set for Its First Deliberation by the NPC Standing Committee
Nov. 4, 2026, 3:47 p.m.
1754Views
-
What Tax Risks May Arise from Dismantling a Red-Chip VIE Structure?
Editor’s Note A typical red-chip structure is established when domestic enterprises or individuals set up holding companies in offshore jurisdictions as offshore listing vehicles, which then control domestic operating entities through equity holdings or contractual arrangements, enabling domestic entities to raise capital via indirect listing on overseas capital markets. Based on the control mechanism, red-chip structures fall into two categories: equity-controlled structures and VIE (Variable Interest Entity) agreement-controlled structures.Oct. 28, 2026, 5 p.m.
2026Views
-
What Risks Does an Invoice Recipient Face Once Its Invoices Are Determined to Be Abnormal, and How Should It Respond?
Editor's Note: The circumstances in which an upstream supplier absconds and becomes uncontactable, is listed as a non-normal taxpayer, or is characterized as having falsely issued invoices are frequently encountered in practice, and the resulting spillover of risk is becoming a real predicament for many downstream enterprises. Invoices that the recipient has already entered in its books and already used for deduction are determined by the tax authorities to be abnormal value-added tax deduction vouchers, and the recipient is consequently required to reverse the input tax amount or pay supplementary tax, among other measures. While such measures prevent the loss of state tax revenue, they nevertheless draw enterprises engaged in genuine transactions passively into tax-related risk. Why are invoices determined to be abnormal? Once such a determination is made, what rights does the recipient have, what risks does it face respectively with respect to value-added tax and enterprise income tax, and what measures should it take to reduce its losses? This article analyzes the foregoing questions.Oct. 27, 2026, 2:56 p.m.
2109Views
-
Countdown 8 Days in the Window Period! How Can Offshore Trust Taxpayers Complete Their Tax Filings in Compliance?
Editor's Note: On July 24, 2026, the Ministry of Finance and the State Taxation Administration issued the Announcement on Matters Concerning Individual Income Tax on Offshore Trusts (Ministry of Finance and State Taxation Administration Announcement No. 21 of 2026) (hereinafter referred to as the "Announcement"), which clarifies the taxation rules for offshore trusts at the stages of establishment, existence, and termination/liquidation. At the same time, it grants a golden window period to taxpayers who have already established offshore trusts. Those who pay individual income tax in accordance with the requirements of the Announcement within 90 days from the date of implementation of the Announcement (by October 22, 2026) will not be charged late payment penalties. As of the date of implementation of the Announcement, 82 days have passed. How has tax administration practice unfolded? How do tax authorities precisely identify offshore trust taxpayers? How can taxpayers seize the final window period to complete their tax filings in compliance? If they fail to complete the filings, what tax risks will they face? This article intends to provide analysis and reminders for readers' reference.Oct. 20, 2026, 4:12 p.m.
2358Views
-
SPC Q&A Clarifies That Where an Enterprise Unable to Pay the Tax Sues Over a Penalty Decision, the Tax Treatment Decision Is Reviewed as Evidence
Editor’s Note: Where an enterprise that has not paid the tax in dispute can only bring a lawsuit against the tax penalty decision, whether the people’s court should review the facts found in the tax treatment decision has long been the subject of inconsistent rulings. On September 17, 2026, the Q&A session of the ninth installment of the Supreme People’s Court’s “Administrative Adjudication Lecture Hall” responded to this issue. This article interprets the Q&A opinion point by point and, by comparison with Administrative Judgment (2026) Qiong 01 Xing Zhong No. 116 of the Haikou Intermediate People’s Court, which takes a position different from that of the Q&A opinion, sets out the review rules established by the Q&A opinion.Oct. 20, 2026, 4:06 p.m.
2385Views
-
Five Typical Cases Highlight Tax Risks under the VAT Refund-upon-Collection Policy for Comprehensive Resource Utilization?
Editor's Note:Recently, the tax authorities in Guizhou Province released five typical cases providing compliance guidance on the VAT refund-upon-collection policy for comprehensive resource utilization. Since 2025, several listed companies have also disclosed that they or their subsidiaries were required to repay previously received VAT refunds due to issues concerning the application of the relevant policy. These cases highlight the importance for comprehensive resource utilization enterprises to accurately understand and comply with the eligibility requirements for VAT refund incentives. Drawing on these typical cases and tax administration practices, this article examines the major tax risks associated with claiming such incentives and provides compliance recommendations for reference.Oct. 12, 2026, 5:12 p.m.
2732Views
-
National Tax Administrative Penalty Discretion Benchmarks Refine the Rules on Fines for Tax Evasion: A First-Time Penalty Will in Principle Not Exceed One Times the Evaded Tax
Editor’s Note: On September 28, the State Taxation Administration (STA) issued the Announcement on Issuing the National Tax Administrative Penalty Discretion Benchmarks (2026 Edition) (STA Announcement No. 20 of 2026). It takes effect on November 1, 2026. Where a regional tax administrative penalty discretion benchmark is inconsistent with it, the national benchmarks prevail. Among the 66 tax administrative penalty items, the rules on fines for tax evasion deserve particular attention. This article explains and analyzes the main content of these rules for readers’ reference.Oct. 9, 2026, 4:46 p.m.
2910Views
-
Analyzing Taxes Through Cases: Should the Subjective Fault of the Taxpayer Be Considered in Determining the Starting Point for Calculating Late Payment Surcharges?
Editor's Note: In Judgment (2026) Xin 01 Xing Zhong No. 73, the Urumqi Intermediate People's Court shifted the starting point for calculating late payment surcharges from the date on which the tax payment became overdue to the day following the issuance of the tax handling decision, on the grounds that the taxpayer had no subjective fault and that the tax authority's audit procedure had exceeded the statutory time limit. Where a taxpayer fails to file tax returns due to a misinterpretation of tax policies, should the late payment surcharge be calculated from the day following the expiry of the tax payment deadline, or from the day following the issuance of the tax handling decision? This directly affects the amount of late payment surcharge. This article intends to analyze and explore the above issues in light of this case.Sept. 23, 2026, 4:31 p.m.
3052Views
-
Retrial Judgments by Two Provincial High Courts: Major Adverse Tax Treatment Decisions Made Without Safeguarding the Right to State and Defend Should Be Revoked
Editor's Note: In Judgment (2026) Xin 01 Xing Zhong No. 73, the Urumqi Intermediate People's Court shifted the starting point for calculating late payment surcharges from the date on which the tax payment became overdue to the day following the issuance of the tax handling decision, on the grounds that the taxpayer had no subjective fault and that the tax authority's audit procedure had exceeded the statutory time limit. Where a taxpayer fails to file tax returns due to a misinterpretation of tax policies, should the late payment surcharge be calculated from the day following the expiry of the tax payment deadline, or from the day following the issuance of the tax handling decision? This directly affects the amount of late payment surcharge. This article intends to analyze and explore the above issues in light of this case.Sept. 23, 2026, 4:24 p.m.
3016Views
