In daily life, in addition to providing insight into tax dynamics through the release of tax related documents, the release of hot news and typical cases also reveals tax related information. "Tax Eye News" aims to extract and interpret tax related information from news, tax related legal documents, or major tax cases, and share it with readers.

1. The official website of the State Administration of Taxation has exposed a case of fraudulent export tax refund investigated and handled by Beijing tax authorities

On January 31, 2023, the State Administration exposed a case of defrauding export tax rebates. Two export enterprises, including a trading company in Beijing, defrauded export tax rebates by simply processing non refundable precious metals such as gold and silver, disguised as high-performance wires, hollow inductors, and other refundable products for export. In accordance with the "Law of the People's Republic of China on the Administration of Tax Collection" and relevant regulations, the Beijing Municipal Taxation Department has recovered 130846200 yuan of fraudulent export tax rebates, and will not refund 117189700 yuan. The tax department transferred the case to the public security organ in accordance with the law and regulations, and cooperated with the public security organ in carrying out the network collection action. Recently, the Beijing Third Intermediate People's Court handed down a first instance judgment on the case. The principal offender, Yang Mouhui, was sentenced to life imprisonment for the crime of defrauding export tax rebates, and eight accomplices were sentenced to fixed-term imprisonment ranging from 5 to 7 years for the crime of defrauding export tax rebates.

Legal analysis: In recent years, the state has always maintained a high pressure in cracking down on illegal and criminal acts of defrauding export tax rebates. Export enterprises should, based on their actual operating conditions, sort out the tax risks existing in the process of engaging in export tax rebate business and the shortcomings in the transaction process. For example, import and export enterprises can sort out information such as export tax rebate documents, review whether the business process is standardized, identify tax risks in a timely manner, and do not neglect the standardization and review of business processes, Pushing enterprises into the position of tax related crimes.

2. The tax department of Hebi City, Henan Province, handled a case where a tax intermediary illegally released false tax related propaganda information

Recently, Henan Hebi City Tax Bureau handled the false tax related propaganda information released by Hebi Qicheng Financial Management Co., Ltd. based on the monitoring clues of Internet data. Upon investigation, the company published false tax related propaganda information such as "selling personal vehicles to companies, underpaying taxes" through the Internet platform, distorting and interpreting tax policies, and misleading the public. Hebi City Tax Bureau, in conjunction with local online credit and market supervision departments, conducted an interview with the company to order it to delete illegal video content and eliminate the impact in a timely manner. According to the "Measures for the Supervision of Tax-related Professional Services (for Trial Implementation)", it listed it as a key regulatory object, suspended the acceptance of its agency's tax related business, downgraded the company's tax related professional service credit rating, and deducted its tax related professional service credit points.

Legal analysis: Although the tax intermediary violation case exposed this time only involves false propaganda, its social impact is very severe, especially if it conducts false propaganda as a professional institution, which not only easily deceives taxpayers, but also makes the general public mistake the means of tax evasion as a legitimate and reasonable means of tax saving, thereby inducing taxpayers who have no intention of tax evasion to embark on the path of tax evasion. When choosing tax related intermediary services, taxpayers must remember not to be misled by the "tax avoidance" promised by the other party.

3. The Seventh Inspection Bureau of Chongqing Municipal Taxation Bureau investigated and dealt with a case of failing to handle the final settlement and payment of comprehensive income of individual income tax according to law

Recently, when the Chongqing tax department conducted a spot check on the handling of the final settlement of comprehensive income of individual income tax, it was found that Liu Xiaoshan, an employee of an agency company in Chongqing, had not handled the final settlement of comprehensive income of individual income tax in 2021 according to law, so it filed a case for inspection according to law. Upon investigation, the taxpayer Liu Xiaoshan failed to complete the final settlement and payment of comprehensive income of personal income tax in 2021 within the statutory deadline, and underpaid the personal income tax. After being reminded and urged by the tax department, Liu Xiaoshan still made a false declaration. After the tax department filed and inspected her case, Liu Xiaoshan corrected her declaration and made up the tax. According to the Individual Income Tax Law of the People's Republic of China, the Law of the People's Republic of China on the Administration of Tax Collection, the Law of the People's Republic of China on Administrative Penalties, and other relevant laws and regulations, the Seventh Inspection Bureau of Chongqing Municipal Taxation Bureau imposed a total of 89000 yuan on Liu Xiaoshan to pursue tax payment, impose overdue fines, and impose penalties. A few days ago, the tax department has served the "Tax Administrative Penalty Decision" according to law, and Liu Xiaoshan has paid off the taxes, overdue fines, and fines in accordance with regulations.

Legal analysis: Taxpayers should promptly verify whether there are situations where final settlement and payment should be handled but not handled, tax declaration and payment are not standardized, and taxable income obtained is not reported, and promptly make corrections. For high income groups, more attention should be paid to the compliance of annual settlement and payment.

4. The Third Inspection Bureau of Xi'an Municipal Taxation Bureau handled the case of online anchors Jia Yaya and Jia Chanchan's tax evasion according to law

Recently, the Third Inspection Bureau of Xi'an Municipal Taxation Bureau discovered through tax big data analysis that network anchors Jia Yaya and Jia Chanchan were suspected of evading taxes. With the cooperation of relevant tax authorities, they conducted tax inspections in accordance with the law. Upon investigation, Jia Yaya obtained income from engaging in live broadcasting from 2019 to 2021, but failed to file tax returns in accordance with the law, underpaying personal income tax of 98100 yuan, including tax evasion of 92600 yuan. The Third Inspection Bureau of Xi'an Municipal Taxation Bureau pursued the payment of taxes, imposed an overdue fine, and fined Jia Yaya a total of 176700 yuan.

During the period from 2020 to 2021, Jia Chanchan earned income by engaging in live broadcasting, but failed to file tax returns in accordance with the law, underpaying 102800 yuan of personal income tax, including 98900 yuan of tax evasion. The Third Inspection Bureau of Xi'an Municipal Taxation Bureau has imposed a total of 185700 yuan on Jiachanchanchan, including tax recovery, late payment fines, and fines.

Legal analysis: This year, the tax department will further strengthen tax supervision on online live streaming practitioners. Relevant practitioners should continuously improve their compliance with tax laws. If there is a risk alert from the tax authorities, they should promptly hire professional personnel to assist in completing the tax self-inspection after receiving the notice, so as to eliminate tax risks at the front end.

5. Announcement of the Ministry of Finance, the General Administration of Customs, and the General Administration of Taxation on the Tax Policy for Export Returned Goods of Cross-border E-commerce (Announcement No. 4 of the General Administration of Customs, 2023)

On January 30, 2023, the "Announcement of the Ministry of Finance, the General Administration of Customs, and the General Administration of Taxation on the Tax Policy for Export Returned Goods in Cross-border E-commerce" (Announcement No. 4, 2023, of the General Administration of Customs, the Ministry of Finance) was issued, which stipulates that:, "For goods (excluding food) declared for export under the cross-border e-commerce customs supervision code (1210, 9610, 9710, 9810) within one year from the date of issuance of this announcement and returned to China in their original condition within six months from the date of export due to unsalable sales or return reasons," Exemption from import tariffs, import value-added tax, and consumption tax; "The export duties already levied at the time of export are allowed to be refunded, and the value-added tax and consumption tax already levied at the time of export are subject to the relevant tax regulations on the return of domestic goods.". "The export commodities under the supervision code 1210 shall be returned and transported outside the domestic area within 6 months from the date of departure from the customs special supervision area or bonded logistics center (type B)."
Legal analysis: Within one year from January 30, 2023, if the goods specified in the document are returned, the corresponding tax paid will be refunded. Taxpayers must not falsify returns due to this policy. After the release of the new article, the state will strictly investigate and deal with "fake returns" and other acts.

6. The final settlement and payment period for 2022 has arrived

On February 2, 2023, the "Announcement of the State Administration of Taxation on Handling the Final Settlement and Payment of Comprehensive Income of Individual Income Tax in 2022" (Announcement No. 3 of the State Administration of Taxation in 2023) was issued. According to the provisions of the document, resident individuals (hereinafter referred to as taxpayers) need to summarize the four comprehensive income amounts obtained from January 1 to December 31, 2022, including wages and salaries, labor remuneration, manuscript remuneration, and royalties, for final settlement and payment. The specific calculation formula is as follows: Tax refundable or refundable=[(comprehensive income amount - 600000 yuan - special deductions such as "three insurances and one fund" - special additional deductions such as children's education - other deductions determined by law - eligible donations to public welfare charities) × Applicable tax rate - Quick calculated deductions] - Prepaid tax amount.

The final settlement processing time for 2022 is from March 1 to June 30, 2023. Taxpayers who do not have a residence in China who leave the country before March 1 may handle the formalities before leaving the country.

Legal analysis: Taxpayers who handle final settlement apply to the annual self tax return of individual income tax. If it is necessary to modify their relevant basic information and add new deductions or tax benefits, they should also fill in and submit relevant information in accordance with the regulations. Taxpayers need to carefully check to ensure that the information provided is true, accurate, and complete. Units that have equity (stock) incentives (including equity incentives for employees by domestic enterprises with equity interests of overseas enterprises as the subject matter), and cash incentives for conversion of job related scientific and technological achievements should report and record in accordance with relevant regulations.