Recently, the Inspection Bureau of the Taxation Bureau of Suzhou Industrial Park in State Taxation Administration of The People’s Republic of China investigated and dealt with the tax evasion case of Lisoft Information Technology (Suzhou) Co., Ltd. according to law. After investigation, in the absence of real business transactions, the company accepted 13 false VAT invoices and charged them before enterprise income tax, and enjoyed the preferential policies of small-scale and meager profit enterprise income tax in violation of regulations, paying less enterprise income tax of 782,700 yuan. In response to its illegal behavior, the Inspection Bureau of Suzhou Industrial Park Taxation Bureau made a decision to recover taxes, add late fees and impose a fine, totaling 1,775,700 yuan. At present, the taxes, late fees and fines involved have been recovered and put into storage.

Are 13 "coincidences" invoices true or false?

In the early stage, according to the clues of public security organs and the comprehensive analysis of tax big data, the Inspection Bureau of Suzhou Industrial Park Taxation Bureau found that 13 ordinary VAT invoices obtained by Lisoft Company were very suspicious. Three companies, such as Shanghai Yunyi Network Technology Co., Ltd., which are the issuers of invoices, were established within one week, and their invoicing time was the same day. The names of the invoices were all "* information technology services * software service fees", and two of them had the same registered address.

Upon further inspection, the inspectors found that the three billing parties were punished by the market supervision and management department for "stopping business for more than six months after opening" at almost the same time, and their business licenses were revoked two months later. This situation is obviously not a normal business state.

Did the three companies really provide "information technology services" to PowerSoft? Why is the invoice issued on the same day "exactly" after providing the service? After issuing the invoice, it is so coincidental to enter the "closed" state at the same time? Is this "coincidence" or "premeditated"?

After further analysis of the tax return of Power Soft Company by inspectors, it was found that the taxable income of corporate income tax in that year was 2,884,300 yuan. According to the relevant provisions of the preferential income tax policy for small and meager profit enterprises, "small and meager profit enterprises refer to enterprises engaged in industries that are not restricted or prohibited by the state, and at the same time meet the three conditions of annual taxable income not exceeding 3 million yuan, employees not exceeding 300, and total assets not exceeding 50 million yuan." Then, is there any artificial adjustment in the annual taxable income close to the "preferential limit" of Soft Power Company to defraud the preferential qualification? Are there real business transactions behind the 13 invoices? The inspectors can’t help but wonder.

Why are accounts payable for more than three years delayed?

Combined with the previous analysis, the inspectors interviewed the agent bookkeeping accountant of Lisoft Company according to law and asked him to provide relevant materials to cooperate with the inspection. Among the materials related to production and operation provided by the company, the inspectors did not find the business contracts signed with three billing parties, the project plan, operation and maintenance manual or user manual required for the information technology service shown in the invoice, and did not find any business-related communication supporting materials. Only invoices and accounting vouchers are not enough to prove the real existence of the business.

In order to further clarify the truth, the inspectors started with the flow of funds. The company’s accounting voucher shows that the total amount of the 13 fare issuance taxes is 1,200,100 yuan, which has been charged to the "accounts payable" account. At the same time, after checking the details of the company’s bank account, it is not found that it has paid any money to three billing parties. As of the time of inspection, the above-mentioned money for more than three years is still in the "unpaid" state. There are indications that the 13 invoices obtained by Power Soft Company are suspected of being falsely issued.

It is not worth the loss to enjoy tax incentives in violation of regulations.

The inspectors interviewed Li, the legal representative of Lisoft Company, according to legal procedures, and explained to him the relevant regulations on tax management, declaration and payment, financial accounting, tax collection and management, etc. In the face of complete evidence, Li had to admit that the company obtained these 13 ordinary VAT invoices by paying the "billing fee" without real business, and recorded them as "main business cost", which was illegally charged before enterprise income tax, thus reducing the taxable income to defraud the preferential qualification.

The company should have applied the corporate income tax rate of 25%, but in the reporting year, it violated the rules and enjoyed the preferential policies of small-scale and low-profit corporate income tax, that is, "the annual taxable income does not exceed 1 million yuan, and the corporate income tax is paid at the actual tax rate of 5%; The annual taxable income exceeds 1 million yuan but not more than 3 million yuan, and the enterprise income tax is paid at the actual tax rate of 10% (further reduced to 5% since 2022), in order to achieve the purpose of paying less enterprise income tax. However, this behavior has not escaped the investigation of the tax authorities in the end.

According to Article 12 of the Measures for the Administration of Pre-tax Deduction Vouchers for Enterprise Income Tax, invoices that are privately printed, forged, altered, voided, illegally obtained by the drawer, falsely made out, and filled out irregularly, and other external vouchers that are not in compliance with national laws, regulations and other relevant provisions shall not be used as pre-tax deduction vouchers. The false VAT invoice obtained by Power Soft Company belongs to the above-mentioned provisions, and the tax authorities accordingly require it to increase the taxable income by 1,200,100 yuan, and require it to pay back the enterprise income tax by 782,700 yuan according to law.

According to the first paragraph of Article 63 of the Tax Collection and Administration Law of People’s Republic of China (PRC), a taxpayer who forges, alters, conceals or destroys account books and vouchers without authorization, or lists more expenses or omits or omits income in the account books, or refuses to declare or makes false tax returns after being notified by the tax authorities, and fails to pay or underpays the tax payable is tax evasion. If a taxpayer evades taxes, the tax authorities shall recover the taxes and late fees that he fails to pay or underpays, and impose a fine of not less than 50% but not more than five times the taxes that he fails to pay or underpays; If a crime is constituted, criminal responsibility shall be investigated according to law.

According to the law, the Inspection Bureau of Suzhou Industrial Park Taxation Bureau made a decision to recover the tax, impose a late fee and impose a fine on the illegal acts of Power Soft Company. At the same time, the clues about the suspected false invoicing were transferred to the public security organs for further investigation.