Recently, the Inspection Bureau of the ** Municipal Taxation Bureau of the State Administration of Taxation carried out tax verification on the partnership B network company according to the suspicious clues transferred by the superiors. After investigation, the inspectors confirmed that Network B Company adopted the method of false declaration, falsely listed more than 28 million yuan of equity transaction costs, and underdeclared and paid individual income tax on business income. The bureau made a decision to pay 10.09 million yuan of individual income tax on business income and impose a late fee of 1.38 million yuan in accordance with the law. At present, all the taxes involved in the case have been recovered and put into the treasury.
Brief facts of the case:
In February 2023, the Inspection Bureau of the ** Municipal Taxation Bureau received a clue from the source of the case transmitted by the superior: there are suspicious points in the tax declaration data of Network B Company, and the enterprise is suspected of underpaying taxes.
* The Inspection Bureau of the Municipal Taxation Bureau quickly organized inspectors to verify the situation of B Network Company. The company was registered and established in August 2021, the nature of the enterprise is a limited partnership, the legal representative is Wang, and there is also a partner Li. The business of the enterprise is network information technology promotion.
The tax officer inquired and learned that Network B had been deregistered in October 2021. During the business hours of more than 2 months, Network B did not have any purchasing or sales operations, and there were zero declarations in the month after its establishment. Shortly thereafter, the company reported to the competent tax authority that S Consulting, of which it was one of its partners, transferred shares to Beijing L Technology Company, declared 90 million yuan of transfer income, and paid individual income tax 30190,000 yuan. Subsequently, the enterprise was deregistered.
Based on the results of the verification of the business conditions and tax-related data of Network Company B, the inspectors believe that Network Company B has set up a "tool enterprise" to engage in equity transfer, so as to evade tax supervision and tax suspicion. As a result, the ** municipal tax inspection department decided to conduct in-depth tax verification of the enterprise.
Case History:
The inspectors decided to divide the troops into two routes, all the way to the competent tax authority of Network B at that time, to obtain the declaration materials of Network B and look for clues. The other team contacted the legal representative, financial personnel and tax personnel of Network B to understand the relevant situation of the transaction.
After obtaining and analyzing the company's declaration materials, the inspectors found that the information provided by the company, such as the equity transfer contract, the proof materials of the original value of the equity of J Technology Company, and the financial statements, were completely consistent with the tax declaration data in the tax collection and management system, and there was no obvious abnormality.
The progress of the other inspectors was also not smooth, and Wang did not show up to cooperate with the investigation.
The inspectors decided to change their thinking and start with external investigation to find clues and verify the true purpose of the establishment of Network B and the truth of the relevant equity transactions.
The inspectors obtained information on the industrial and commercial registration, investment and equity change of Network B through enterprise information query platforms such as "Tianyancha". At the same time, with the strong support of the market supervision and management department, the inspectors obtained a full set of filing materials, including the register of shareholders and the equity transfer agreement.
After careful analysis of these materials and targeted investigations of related enterprises and transactions, the inspectors gradually learned about the situation of Network B and its related equity transactions.
In August 2021, Wang invested 50% of the equity of J Technology Company held by himself and registered B Network Company. Subsequently, Wang established S Consulting Company with the partner by investing in the equity of J Technology Company held by B Network Company. Shortly thereafter, S Consulting transferred its 50% stake in J Technology to Beijing L Technology. Subsequently, the network company B made a declaration of equity transaction income to the competent tax authorities and paid more than 3 million yuan in taxes.
Combined with the results of the investigation, the inspectors re-examined the equity transaction information declared by Network B to the tax authorities at that time, and re-calculated the income of the enterprise: there was no problem with the income declared by Network Company B at 90 million yuan, but the transaction cost declared by it at that time was more than 80 million yuan, and compared with the actual transaction cost, the transaction cost was falsely reported by nearly 30 million yuan.
Case Outcome:
At this point, it is clear that Network B has inflated transaction costs and underpaid taxes. However, the person in charge of the enterprise, Wang, and the partner Li, did not accept ** and refused to show up. **The Inspection Bureau of the Municipal Taxation Bureau then activated the tax police liaison mechanism and asked ** to intervene in the investigation. With the assistance of the public security organs, the inspectors learned of the addresses of Wang and Li, mailed them a "Notice of Assistance in Inspection", and notified the other party together with **, requiring the two to cooperate with the investigation. Under pressure, Wang and Li went to the ** tax authority for an interview as scheduled.
Wang and Li admitted that Network B had falsely stated the cost of equity transactions and underpaid taxes. After investigation, Wang established a partnership B network company in ** by way of J shares, and then established a partnership S consulting company by way of B network company shares. After S Consulting transferred 50% of the equity of J Technology Company to L Technology Company for 90 million yuan**, in order to avoid paying taxes, B Network Company falsely reported transaction costs of more than 28 million yuan in tax declarations. In response to the illegal acts of enterprises, the ** Municipal Taxation Bureau made a decision to levy 10.09 million yuan of individual income tax on business income and 1.38 million yuan of late fees in accordance with the law.
Tax case analysis: departments work together to break through bottlenecks
Author: Zhao Binjian, Director of the Inspection Bureau of the ** Municipal Taxation Bureau of the State Administration of Taxation.
This case is a typical case of false declaration and underpayment of tax by an enterprise. As a partner of a subordinate enterprise, the enterprise involved in the case made a false declaration to the tax authorities by inflating the transaction costs after the subordinate enterprise transferred its equity, in an attempt to underpay the tax, but under the careful verification of the inspectors, all its tricks were in vain.
In the face of unfavorable conditions such as the cancellation of the enterprise involved in the case, the incomplete information of the enterprise, and the lack of clues, the inspectors rose to the challenge, constantly adjusted the inspection ideas, flexibly adopted a variety of methods to verify and collect evidence, and finally successfully completed the investigation and handling of the case and the recovery of taxes.
Adapt to changes and adjust the direction of verification in a timely manner. In this case, when the inspectors received clues about the source of the case and started the investigation, the suspicious enterprise had been deregistered, there was no local business office, and the person in charge of the enterprise, partners and other key personnel were also in other places. In the face of the unfavorable situation that the production and operation materials of the enterprise cannot be obtained, the personnel of the enterprise delay and do not cooperate with the investigation for various reasons, and the clues in their hands are scarce, the inspectors responded calmly, changed the direction of the investigation in a timely manner, and decided to "bypass" the suspicious enterprises, increase the intensity of third-party evidence collection, and solve the mystery through the implementation of external investigations. The final results of the case show that this strategy is not only "right way" but also very effective.
Strengthen departmental collaboration and break through the bottleneck of investigation. In the process of investigation of tax-related cases, due to the limitations of information resources, technical means, investigation authority and other factors, the tax authorities will inevitably encounter "blockages" in the investigation, and will encounter difficulties in searching for and collecting evidence. At this time, the effective way to break through the bottleneck of the investigation is to find "foreign aid" and open up the situation through departmental collaboration.
In this case, the inspectors strengthened cooperation with the market supervision department to obtain more comprehensive information on the registration and equity change of the enterprises involved in the case, laying a solid foundation for further clarifying the truth of the transaction. Through cooperation with the public security organs, the partners of the enterprises involved in the case were successfully found, and they were prompted to explain the situation to the tax authorities as scheduled, so that the case was finally successfully investigated.
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