*ST High Rise Indicates Significant Risk Four Directors Said "Confusing"

*ST rose to sink again. On the evening of 28, a risk prompted the public to disclose the scandal of 5 yuan tax evasion of 180 million yuan in 2015's major asset restructuring. The listed company will pay a maximum penalty of 3 times. However, the announcement of the company's influence was so great that 2 directors and 2 independent directors of the company said they could not guarantee their contents to be true, accurate and complete.

According to the announcement, in 2015, the listed companies issued shares and paid cash to 5 stake holders of natural persons, such as Yu Ping, Weng yuan, Xu Lei, Dong Yan and Zhao Chunhua, to buy 100% stake in Gaosheng technology, and the transaction price was 1 billion 500 million yuan. Among them, 60% of the transaction consideration is paid in the form of issuing shares, accounting for 900 million yuan, and 40% of the transaction consideration paid in cash, which is 600 million yuan.

At that time, the announcement said that the setting of the cash consideration fully considered the cash demand of the trading party to pay taxes, which could meet the needs of paying personal income tax. However, in the case of the above 5 natural persons who show full knowledge of the duty of paying taxes, most of the tax is still not paid.

According to the company's consultation with the Inland Revenue Department of the State Administration of Taxation of Changchun, the 5 shareholders of natural persons, apart from paying 116 million 340 thousand yuan in personal income tax, still owe 179 million 910 thousand yuan in personal income tax and 750 thousand yuan in stamp duty. They do not include late fees, fines, etc., and have not yet been paid by all relevant measures taken by the relevant tax authorities.

The tax evasion action will affect the listed companies. According to the ninth provision of the law of the People's Republic of China on personal income tax, "the individual income tax is made by the taxpayer, and the unit or individual paid is the withholding agent." The sixty-ninth section of the law of the People's Republic of China on the administration of tax collection stipulates that "withholding agents should not deduct or receive tax receivables, the tax authorities shall recover the tax from taxpayers, and impose a fine of 50% times or less than 3 times the amount of tax withheld by the withholding agents.

Listed companies therefore call it a risk of being fined, or have a significant adverse impact on the cash flow and daily operation of listed companies. If the penalty is calculated at a maximum of 3 times, the listed company will add a fine of about 540 million yuan. The company said that if a listed company was held accountable by the tax authorities, the listed company would promptly pursue the law to Ping, Weng Yuan, Xu Lei, Dong Yan and Zhao Chunhua.

However, it is interesting that for this announcement, directors Xu Lei, Dong Hong and Independent Director Tian Ying Chun and Zhao Liang indicated that they could not guarantee their contents to be true, accurate and complete. The 4 said that the 5 people in Ping have their full tax payment ability based on the company's restricted stock, and there is no possibility of allowing the company to take any risks. It is also said that the company's intention to drink is not in the liquor, which is intended to confuse the public, and shift the line of sight of regulators and small shareholders to weaken the delisting risk caused by over 2 billion huge illegal guarantees.

The other two independent directors of the company did not directly question the authenticity of the announcement, but also prompted the company's current risks. Among them, the independent director radar once again prompts that the listed company is at risk of governance. It calls on all interested parties to take the interests of all shareholders as the most important and take effective measures to avoid the delisting risks of listed companies, and calls on the regulatory authorities to give more guidance to the companies on the market while strengthening supervision. Chen Guoxin, an independent director, said that the failure to pay taxes in full and in time would bring potential losses to the withholding agents.