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✅ Policy interpretation + legal planning, precise matching of concessions to reduce costs
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Need exclusive tax compliance program Immediately contact: 19076121147 (phone / WeChat the same number)

Recently, a major tax-related illegal case in Jiayuguan detonated the financial and tax circle

A local energy enterprise (Jiayuguan Hongxing West Energy Co., Ltd.), due to its desperate attempts to falsely issue VAT invoices and inflate costs, has not only been pursued for a total of tax + late payment fees + fines$3,387,900The clues involved in the case were also directly transferred to the public security organs, and a number of people involved in the upper reaches of the case have been controlled and transferred to the Procuratorate for examination and prosecution, which really deserves the saying ”Greedy for a small profit, but ate a big loss.”✅

This is not a case! Golden Tax IV full landing, tax big data accurate ”portrait”, false opening, false listing has long been the top priority of the tax audit!

Today, we will take advantage of this typical case to dismantle the tax-related red lines that enterprises are most likely to step on, and teach you to avoid these fatal pits!

Heavyweight case｜3.38 million fine + public security referral, the energy company's ”death operation” is exposed.

Many companies feel that ”false invoices, false cost, as long as you do hidden can not be found”, but Jiayuguan the experience of this energy company, hit the face of such a fluke!

After investigation, between 2020 and 2023, the energy enterprise in order to pay less tax, fraudulent enjoyment of small and micro-profit enterprise tax concessions, moved the ”crooked mind”, a set of operations down, seemingly seamless, but in fact, has long been the tax big data locked 👇

1. False invoicing: payment of 6% ”invoicing fees” to falsify transportation operations

The enterprise has long employed scattered social vehicles to transport goods, but in order to offset the input tax, specifically looking for six transport companies in foreign provinces to pay about 6% ”invoicing fees”, false VAT invoices.

In just a few years, a total of 68 fraudulent invoices were obtained, involving amounts as high as4.879 million dollars! Even more outrageous is that these invoices correspond to the transport business, the place of delivery, the place of receipt and the carrier registered across thousands of kilometers, completely inconsistent with the industry's cost control logic, a clear-eyed person at a glance there is a problem.

2. False costing: depressing income and fraudulently benefiting MSMEs

At the same time, the enterprise also booked these false invoices, inflated the transportation cost by 4,879,900 yuan, and lowered the annual real taxable income from 6,770,000 yuan to 1,950,000 yuan, disguising itself as a small and micro-profitable enterprise that ”meets the conditions”, enjoying tax concessions in violation of the law, and ultimately underpaying the enterprise income tax of 1,596,400 yuan and value-added tax of 439,200 yuan. 1.5964 million yuan, value-added tax 439,200 yuan, total underpayment of taxes and fees$2,088,300,000The

3. Repatriation of funds: self-deception and irony in the face

In order to cover up the truth of false invoicing, the enterprise also staged a ”capital reflux” drama: signing a false transportation contract, paying ”freight” to the invoicing party's public account, the invoicing party deducted the ”invoicing fee” and then quietly refluxed the remaining funds to the enterprise's designated account through multiple personal accounts. After deducting the "invoicing fee", the invoicing party will quietly return the remaining funds to the designated account of the enterprise through a number of personal accounts.

At first, the enterprise self-examination claimed that ”financial accounting standardization”, only 0.33 million yuan of stamp duty and trade union funds, insisting that there are no other tax-related issues. However, the tax officials through the access to bank water, forensics, quickly recognized the set of routes, in front of the complete chain of evidence, the person in charge of the enterprise and the business operator had to admit the facts of the violation of the law. Need exclusive tax compliance program Immediately contact: 19076121147 (phone / WeChat the same number)

Final Penalty Outcome (underlined):

✅ Recovery of $2,088,300 in underpaid taxes;
✅ Additional late fees and fines totaling $3,387,900 (all of which have been recovered and paid into the Treasury);
✅ Suspected of fraudulent invoicing crime clues, transferred to the public security organs for investigation;
✅ Upstream false invoicing involved in the case, has been controlled by the public security organs and transferred to the Procuratorate for examination and prosecution.

Dry analysis｜False invoices + false cost, the consequences are far more serious than you think!

Many business owners, accounting staff, the consequences of false openings, false list of cognitive deficiencies, think ”the big deal is to make up taxes and fines,” but in fact, once you touch this red line, the light is a huge fine, the heavier is to be held criminally liable, affecting the enterprise and personal life!

I. Legal Red Lines (a must see!)

According to Article 63(1) of the Law of the People's Republic of China on Administration of Tax Collection, a taxpayer who falsifies, alters, conceals, or destroys without authorization the books of account and vouchers, or overstates expenditures or omits or understates income in the books of account, or who refuses to make a declaration after being notified to make a declaration by the tax authorities or who makes a false declaration of tax, and who does not or underpays the tax payable, is a tax evader.

For tax evasion, the tax authorities shall recover the unpaid or underpaid taxes, late fees, and impose a fine of not less than fifty percent and not more than five times the unpaid or underpaid taxes; if a crime is constituted, criminal liability shall be investigated according to law.

And false VAT invoices, is a felony - up to life imprisonment and a fine of 50,000 yuan or more than 500,000 yuan or confiscation of property, even ”unknowingly” receive false invoices, may also be required to pay back taxes, late fees, and face a Fines!

Second, the focus of the audit (under the Golden Tax Phase IV, these behaviors must be investigated)

Combined with this case and the logic of the Golden Tax IV supervision, these three types of behavior has long been the ”key target” of the tax audit, enterprises must not touch:

1. False invoicing: In particular, the transportation, building materials and commerce industries frequently accept invoices issued by enterprises in foreign provinces and without actual business operations, and the invoice amounts and categories are grossly inconsistent with the scale of the enterprises' operations;

2. False costing: inflating freight, office and labor costs, fabricating contracts and vouchers without real business, charging invoices for personal consumption, and even inflating the salaries of temporary workers;

3. Fraudulent enjoyment of concessions: Falsifying the illusion of meeting the conditions for tax concessions (e.g., small and micro-profit enterprise concessions in this case) by misrepresenting costs and concealing income.

Reminder: Golden Tax IV can realize ”invoice flow, capital flow, goods flow” tripartite comparison, even a small amount of false listing, a false invoice, can be accurately identified, there is no ”fish out of water”!

Need exclusive tax compliance program Immediately contact: 19076121147 (phone / WeChat the same number)

Urgent reminder｜Enterprise cooperation to avoid the pit, these 4 points must be done (dry collection)

This case is a wake-up call to all enterprises: tax compliance is not a ”cost”, but a ”safety bottom line” for enterprises. Especially in energy, trade, transportation and other tax-related high-frequency industries, do these 4 points to avoid stepping on the pit:

1. Invoices should be scrutinized
When receiving invoices, we must verify the qualification of the invoicing party (to avoid shell enterprises), the authenticity of the business, and confirm that the invoice information is consistent with the contract, logistics, and funds, and eliminate the ”separation of invoices and goods” and ”return of funds”, and we do not accept any false invoices or invoices issued on behalf of the invoicing party.

2. Cost accounting to be standardized
All costs and expenses must be accounted for with real business support, retaining contracts, payment vouchers, logistics returns and other supporting materials, not fabricated, not fictitious, to avoid the ”invoices into the accounts” and ”inflated costs”.

3. Compliance with preferences
To enjoy tax incentives (e.g. small and micro enterprises, additional deduction for R&D expenses, etc.), you must comply with the policy requirements, do not exploit policy loopholes or falsify preferential conditions, and take the initiative to cooperate with the tax authorities in their verification.

4. Regular self-checks to be put in place
Regularly carry out tax self-examination, focusing on the risks of invoices, costs, capital transactions, etc., and find timely rectification of problems and take the initiative to pay back taxes, so as to avoid small problems from dragging into big cases, and ultimately face the serious consequences of fines and referrals to the public security.

Closing Warnings

3.38 million fine + public security referral, Jiayuguan this energy company's lesson is enough for all companies to wake up:

Taxation is becoming more and more strict, ”tax evasion” has long been no room for survival, false invoicing, false cost seems to be able to ”save some money”, but in fact, it is digging a ”big pit” for enterprises and individuals! --Enterprises may be included in the non-normal households, revocation of business license, the person in charge and accounting staff may be held criminally liable, affecting credit, restriction of travel, the loss outweighs the gain.

Please pass it on to the business owners and accountants around you, to keep the bottom line of tax compliance and not to take any chances is the right way for the long term development of the enterprise!

Need exclusive tax compliance program Immediately contact: 19076121147 (phone / WeChat the same number)