Anti Tax Avoidance Management New Regulation Is Expected To Be Introduced In The First Half Year

In April 7th, informed sources informed that in 2008, the State Administration of Taxation will further refine and amend the relevant regulations and systems for tax avoidance, increase the crackdown on various forms of tax avoidance, and enhance the depth and intensity of anti tax avoidance work in an all-round way.

Among them, in the field of anti tax investigation, the industry will strive for a comprehensive breakthrough in clothing, shoemaking, fast food, electronics and communications equipment manufacturing.

"China's anti avoidance tax system has been unprecedentedly developed in the new enterprise income tax law and implementing regulations. It has not only promoted the level of legislation, but also perfected the contents of the legislation, thus creating a new history of anti tax avoidance.

At present, tax authorities at all levels are more concerned about the introduction of further detailed rules of operation, and taxpayers are more concerned about how to better comply with the tax law.

Song Ning, senior manager of the Beijing Taxation Department of DDT evermore, said in an interview with our reporter.

Focus on cross border related pactions

It is reported that the "special tax adjustment management regulation" formulated by the State Administration of Taxation on the new enterprise income tax law and its implementation regulations is now in the stage of soliciting opinions, and the possibility of introducing it in the first half year is very great.

According to people familiar with the matter, the document will focus on such aspects as related declaration and audit, data management in the same period, pfer pricing, advance pricing arrangement, cost sharing agreement, controlled foreign enterprise management, capital weakening management, general anti avoidance, corresponding adjustment and international consultation.

In Song Ning's view, "after the scientific legislation, the law enforcement by the tax authorities, the compliance of taxpayers according to law, and the investigation and punishment of illegal taxpayers are also important and necessary."

It is understood that this draft will further clarify the requirements of enterprises in accordance with the provisions of the new enterprise income tax law 114th regulations, according to the tax year preparation, preservation, and according to the requirements of the tax authorities to provide related information on their related pactions.

Among them, the information needs to include the company's ownership structure, production and operation, related party pactions, pfer pricing principles and so on.

At the same time, the tax authorities should submit them to the Inland Revenue Department within 15 days when they require more proof information.

The introduction of the new regulations will set higher requirements for taxpayers to comply with China's tax law.

It is worth noting that in order to minimize the costs and burdens of taxpayers in compliance with the law, it is reported that the State Administration of taxation is considering the exemption from the obligations of enterprises in special situations to prepare, preserve and provide the same information.

The enterprises entitled to this "special treatment" mainly include three kinds of situations: enterprises with relatively low amount of related pactions in the year; enterprises in the period of validity of the APA; only related parties within the territory (excluding Hongkong, Macao and Taiwan).

This exemption may indicate that the anti tax avoidance work of the State Administration of Taxation will focus more on cross-border related pactions in the future.

"If you are just trading in the territory, it is equivalent to the right hand left handed, Shanghai sold to Beijing, Beijing sold to Guangzhou, all of which happen in the country, there is no difference in tax burden everywhere, tax revenue will not drain to the outside world, and then a lot of anti tax avoidance, meaning is not too obvious."

There was an insider analysis.

Anti avoidance investigations focus on breaking through four industries

According to the data provided by the State Administration of Taxation, in 2007, 192 anti tax avoidance cases were filed and 174 cases were closed. The amount of taxable income was 10 billion 430 million yuan, and 1 billion yuan was added to the tax, an increase of 47% over the previous year.

In 2008, the State Administration of Taxation proposed that the working mechanism of pnational anti tax avoidance should be further improved.

Among them, we should further refine and amend the relevant regulations and systems for anti tax avoidance, seize the opportunity to implement the new enterprise income tax law, increase the crackdown on various forms of tax avoidance, and integrate quality standards and requirements throughout all aspects of anti tax avoidance work.

In the field of anti tax investigation, we strive to make a comprehensive breakthrough in clothing, shoemaking, fast food, electronics and communications equipment manufacturing.

"This kind of anti tax avoidance nationwide joint inspection is a very effective way to promote tax avoidance in recent years."

Song Ning told reporters.

Song Ning, for example, for example, in 2006, the Guangdong provincial taxation bureau investigated a Hong Kong listed companies in the garment industry, adjusting the tax amount of about about 70000000 yuan.

In the process of investigation and adjustment, the tax department has never been familiar with this industry, and has accumulated a lot of experience and industry data. If these valuable resources are extended to the investigation and adjustment of other enterprises in the same industry, the efficiency of anti tax avoidance work can be greatly improved.

In recent years, the State Administration of Taxation has made a solid foundation for the comprehensive breakthroughs in the next industry.

//cn.jx