In our daily consultations, we have discovered a shocking truth: many business owners do not intentionally violate the law, but unknowingly step into a chain of traps of "false invoicing". More critically.More than 90% of fraudulent opening cases, all because of the same fatal details of exposureThe details are hidden in your "money flow". This detail is hidden in your "capital flow". Today, we combined with the State Administration of Taxation has just announced a real case, for you to completely dismantle: tax audit how to accurately lock false opening? Is your enterprise unconsciously stepping into the minefield? And, where is the real safe way out?

One,Statutory Definition of Fraudulent Invoicing and Three Forms of Warning

groundArticle 22 of the Measures of the People's Republic of China for the Administration of Invoices It is stipulated that invoices shall be issued in accordance with the stipulated time limit, order and columns, and all joints shall be issued at once and truthfully. Any invoicing behavior that is inconsistent with the actual operation of the business constitutes afraudulent invoicingCombined withGeneralization by the State Administration of Taxation (SAT) and several local inspection bureaus in case notificationsThe following three legal forms of illegal behavior of false invoicing have been presented, and enterprises and related personnel must be alerted:

I. Issuing invoices for others and for oneself that do not correspond to the actual operating business situation

This behavior is the source of false invoicing. It mainly refers to the invoicing party where no real transaction has occurred, or where a transaction has occurred but the invoice is issued on theInaccuracies in key elements such as name, amount, quantity, etc.(for others), or invoicing for themselves (for themselves) under the circumstances. Common techniques include the use of controlled or associatedshell companyThe company also fictionalizes business transactions, "creates" input invoices for its own or others' deductions, or issues output invoices to help others cover their costs.

II. Letting others issue invoices for themselves that do not correspond to the actual business situation

This behavior is the demand side of false invoicing. It mainly refers to the fact that the party to whom the ticket isNo real trading background(b) Requesting, acquiescing in or accepting invoices from third parties on its own initiative, in circumstances where the invoices have been issued by a third party. The core purpose is to illegally obtain invoices forFraudulent tax credits, irregular pre-tax deduction of enterprise income tax or arbitrage of fundsIn practice. In practice, this is often manifested in the form of invoices purchased by enterprises through the payment of "invoicing fees" due to the lack of invoices for purchases or shortfalls in costs and expenses.

III. Introducing others to issue invoices that do not correspond to actual business operations

This act is the "glue" in the chain of fraudulent invoicing. It is committed between the invoicing party and the invoiced party.Brokering and matchmakingThe introduction of a person who has been involved in the invoicing or receiving of the invoices is a violation of the law. Even if the introducer is not directly involved in the invoicing or invoicing, it also constitutes a violation of the law. Their motives are often to obtain "intermediary fees" and "benefit fees".

State Administration of Taxation (SAT) Core Tips for Auditing (based on the analysis of several public typical cases):Whichever of the above forms is the essence of theFictitious business activities, disrupting the order of tax collection and management. And all fictitious businesses necessarily face a fundamental flaw that cannot be justified:How do funds "close the loop" on fraudulent transactions?

 Therefore.Tracking the return of anomalous fundsIt has become a tax inspection using big data to accurately identify and penetrate to combat the illegal and criminal behavior of false openingCore breakthroughs and key chains of evidenceUnder the "tax by numbers" regulatory system, this funding gap will serve as a beacon to guide audits. Under the regulatory system of "tax by numbers", this funding gap will serve as a beacon to guide the direction of audits.

If you have concerns about your own water flow, any questions or needs regarding fiscal compliance.You can add customer service (micro letter: qcygscszk, cell phone: 18676749275), we can provide you with customized strategies.

Second, the audit of the "mace": the return of funds to the two "death signals"

The power of Golden Tax Phase IV lies in its ability to make funds "speak". Through the seamless sharing of silver and tax data, it has constructed a model to specifically capture two types of capital return patterns that can be called "death signals":

• Signal One: [Flashback + Private Account Bridge]
• Upon receipt of funds from a public account, the funds areWithin 24 hours(or even a few minutes), quickly transferred through the personal accounts of multiple employees, relatives or unrelated persons, WeChat/Alipay, etc., and ultimately "closing the loop" back to the payer or its affiliates.The more complex the path, the more obvious the intent.
• Signal II: [Precision accounting, fixed percentage]
• The percentage of "payments" from different customers at different times is as accurate as if it had been calculated with a calculator (e.g., 95%, 98%).The real world of business is full of chance and bargaining, and there is no such thing as "mechanical beauty".

Once any of these patterns occurs in a company's water flow, the risk of system alerts and audit intervention increases exponentially.

Third, the case deep: to see how the audit "jigsaw" to solve the case

We take the recently published "Xingtai a finance company false opening case"As an example, restore the whole process of auditing:

[System Alarm]Big Data found that a "housekeeping company" in Xingtai continued to invoice a "pharmaceutical company" in Shijiazhuang, a hundred miles away, for huge service fees.Cross-geographical, high-frequency, high-value, a serious breach of business logic that triggers a level 1 alarm.

[Correlation Mining]: A deeper dive reveals 10 similar companies, whichLegal representatives, finances, and tax preparers cross over with each other., forming a hidden network. Even more deadly, these companies have different registered addresses butBilling IP addresses are identical--points to the same physical location operation.

[Field verification]The inspectors followed the map and found that some of the registered addresses are "skycrapers", some are underground garages, and some of the registered addresses are "airports".None with business substanceThe "Shell Company" cluster is solidified.

[Funds penetration, one hammer]: Access to bank water, the truth is revealed: the downstream payment of the "payment" into the shell company account, by theRapid spin-offs, relay transfers through dozens of individual accountsThe private accounts of downstream associates or intermediary controllers are ultimately remitted back to the private accounts of the downstream associates or intermediary controllers as if a hundred rivers were returning to the sea.Funds "day trips" to complete the "perfect" closed loop of fraudulent transactions.

[Iron case finalized]: The agent involved wasListed as the subject of tax-related service failure(industry lifetime ban), downstream invoiced companies were retroactively fined for back taxes, and the main responsible person was suspected of committing a crime fortransfer to the Public Security Bureau, faces criminal liability.

This case cruelly proves: in front of the "data perspective", false contracts, invoices, logistics are unbearable, only the direction of the flow of funds, is the ultimate chain of evidence can not be tampered with.

If you have concerns about your own water flow, any questions or needs regarding fiscal compliance.You can add customer service (micro letter: qcygscszk, cell phone: 18676749275), we can provide you with customized strategies.

Fourth, clear this account: the cost of false opening far exceeds your imagination

Once characterized as false starts, companies will face more than just fines:

1. Financial death penalty: Recovery of tax + late fee of 5/10,000 per day (annualized 18.251 TP3T) + 0.5 to 5 times penalty. Enough to bankrupt a profitable business in an instant.
2. Criminal risk: Business owners and financial officers may be affected byOffense of false VAT invoicingCriminal liability up to life imprisonment.
3. social death: Tax credit straight downgrade D, invoices stop supply, export tax rebates are tightened, bidding qualification is lost, and bank loans are frozen.
4. business crash: Vendor withdrawal, zero customer trust, and total goodwill bankruptcy.

V. Building a "four streams in one" compliance lifeline

True security comes from building systems. Businesses are advised to take immediate action:

1. revolution of ideas: Say goodbye to the old days of "looking for invoices to offset taxes". Tax planning must be front-loaded toReal business designCenter.
2. "Four streams in one".: Ensure that each operationContracts, goods/services, invoices, fundsThe four streams are clear, consistent and traceable.
3. Cleaning up financial flows: It is strictly forbidden to receive business payments or cover costs through personal accounts. Public-to-public transfers are a "moat" to protect businesses.
4. Audit your partners: Conduct basic background checks on suppliers and be wary of "invoicing companies" that do not have physical premises and personnel.
5. Proactive Health Screening: Regularly conduct "financial and tax risk scanning" through professional organizations (e.g. Enterprise Finance) to proactively detect abnormal signals such as "capital reflows" and resolve crises in advance.

Let professionalism become your most solid shield In the view of Enterprise Caiying, Golden Tax IV is not a "spell", but an opportunity for all enterprises to return to the essence of business and fair competition. Risk is not scary, what is scary is the ignorance and indifference to risk. Enterprise Caiying has been deeply engaged in corporate finance and tax compliance for many years, we can not only provide professional crisis response after the occurrence of risks, but also help enterprises to build a "firewall" beforehand. FromEquity structure design, business process sorting, contract specification development, to the whole process of financial and tax compliance managementWe are committed to keeping every dollar of your profits safe and in the sun. If your business has historical accounting concerns, or is planning a new business and wants to eliminate risk at the source. We can help:

• In-depth tax risk diagnosis report
• "Four Streams in One" Compliance Solution
• Tax audit response rehearsal and full coaching

Safety is the ballast of the enterprise's voyage. Enterprise Caiying, we would like to use our professional strength to guard your base business for a long time. Please feel free to contact me if you have any questions or needs regarding tax compliance.