Taxation is an important foundation for the country’s fiscal operation. Tax exemptions, export tax rebates, and various enterprise-friendly subsidy policies are intended to help the real economy, reduce operating pressure, and stabilize market development.
However, in the market in recent years, many unscrupulous merchants and shell companies have used erroneous ideas to obtain tax refunds and tax reduction subsidies through false issuance of invoices, falsified business statements, false declarations of export goods, and fake materials. This has not only caused a large loss of national tax revenue, but also seriously disrupted the normal business environment. Enterprises operating in compliance with the law have suffered obvious losses.
Recently, the Ministry of Public Security jointly held a special work deployment meeting with multiple departments to clarify the key rectification directions in the next stage. The entire chain has cracked down on illegal invoice crimes, import and export tax fraud, illegal tax dividends and other tax-related illegal activities. Multi-department collaborative case handling, big data precise screening, industry-wide investigation, and supervision have been comprehensively upgraded.
The first and eight departments jointly implemented heavy rectification, and tax-related illegal supervision was comprehensively tightened
This special rectification work was led by the Ministry of Public Security, with multi-functional departments participating simultaneously and coordinated efforts from top to bottom. It is a nationwide unified deployment of fiscal and taxation market order rectification actions.
Based on their own regulatory responsibilities, each department has opened up channels for data information, law enforcement and case handling, and industry verification, forming an integrated governance structure of public security investigation, tax inspection, market verification, and import and export supervision.
Judging from the current economic development environment, tax and fee reductions for small and micro enterprises, entrepreneurial support, foreign trade export tax rebates, and preferential industrial tax policies continue to be implemented, and a large number of real enterprises and entity-operated merchants have effectively enjoyed the policy dividends.
But at the same time, tax-related violations and chaos continue to grow, with mature chains of fake shell gangs, false export arbitrage in the foreign trade industry, and frequent problems of companies falsely reporting business qualifications and defrauding subsidies.
Once the tax collection and administration environment is chaotic, the fair business order will be broken, the tax burden on law-abiding taxpayers will increase in disguise, and the national public finance funds will be seriously damaged.
The purpose of this eight-department centralized deployment of follow-up law enforcement work is very clear. They insist on attacking at first sight and digging deep throughout the entire chain. They maintain high pressure and strict control on all types of tax evasion and fraudulent use of fiscal and tax support dividends. They will discover and investigate strictly together, resolutely maintain the bottom line of tax safety, purify the overall business market environment, and let tax reduction and fee reduction and export support policies truly fall on enterprises that do business effectively.
Offline front-line law enforcement forces such as taxation, public security, customs, and market supervision in various regions have simultaneously moved down, and industry inspections, enterprise verifications, and big data risk control screenings have been carried out on a regular basis. Follow-up rectification actions will continue to be implemented, with wide coverage, strong investigation and punishment, and obvious deterrent effects.
Second, focus on cracking down on false issuance of purchase and sale invoices, and cut off the gray industrial chain of illegal invoices throughout the entire chain
The first priority of this special rectification is to severely crack down on various types of illegal and criminal invoices, which is also the most common financial and taxation chaos in the market and the highest amount of money involved.
In daily operations, many companies lack cost invoices and input invoices, so they privately find people to buy special VAT invoices and ordinary invoices to use for accounting and tax deductions; there are also illegal groups that register a large number of shell companies, with no real goods exchanges and no actual business operations, and specialize in issuing large quantities of false VAT invoices to earn the difference in invoicing points.
In addition, behaviors such as large-head and small-tail invoicing, red flushing of invalid invoices, forged business contracts, repatriation of funds, cross-regional reselling of invoices, etc. are all within the scope of key investigations.
The crimes of false invoice issuance are highly concealed, there are many cases of cross-regional movement, the gangs have clear division of labor, and invoices are issued at different levels, which seriously undermines the order of tax collection and administration.
In the past, there have been many typical cases investigated and handled in many places. Unscrupulous individuals registered batches of enterprises without actual operation, applied for a large number of false invoices in a short period of time, and the amount involved was huge, resulting in huge tax losses.
Next, the public security and taxation departments will work together with the big data risk control system to focus on early warning and verification of mismatch of imported and sold goods, long-term zero declarations by enterprises, abnormal invoicing amounts, abnormal capital flow, and cluster registration of empty shells.
The entire chain of investigation will be traced from ticket-buying enterprises, invoicing groups, transfer intermediaries, and capital channels, and both upstream and downstream will be investigated and punished to completely cut off the gray chain of false invoicing.
Once the false issuance or sale of invoices is confirmed, not only do taxes, late fees, and high administrative fines need to be paid, but if the circumstances seriously involve criminal crimes, the case will be directly opened for investigation and criminal responsibility will be investigated, and the legal person, financial person, and actual controller will all be held accountable.
3. Keep a close eye on the field of foreign trade import and export, and strictly investigate false trade export tax fraud
In the foreign trade import and export industry, the export tax rebate policy can reduce the operating costs of foreign trade enterprises and support the stable development of goods export trade.
However, some illegal business entities have seized on policy loopholes and started false export arbitrage business.
There are no real overseas orders and no actual goods declared for export. By forging customs declaration documents, fictitious logistics and transportation, circular import and export, paid exports, falsely reporting commodity prices, etc., they forged complete export trade materials and defrauded the national export tax rebate funds in violation of regulations.
There are also cross-border foreign trade intermediaries, customs brokers, and import and export leather bag companies colluding with each other to create false foreign trade flows and idle goods to defraud tax refund subsidies, seriously damaging the foreign trade tax order and squeezing the living space of formal foreign trade factories.
This eight-department special governance specifically targets export tax fraud as the core target. Customs declaration data, logistics and transportation information, foreign exchange collection vouchers, and corporate operating accounts are cross-checked by multiple parties to accurately identify false foreign trade businesses.
Comprehensive inspections of high-risk industries such as remote customs declaration, high-value low-risk commodities, circular import and export, and bill-based customs declaration.
Carry out special cases on gang-style cross-border tax fraud and regional foreign trade arbitrage cases, strictly investigate the upstream and downstream foreign trade chains, recover tax refunds fraudulently obtained in violation of regulations, severely punish illegal business entities, standardize the import and export trade environment, and ensure the accurate distribution of foreign trade support policies.
4. Strictly investigate violations of tax and fee bonuses, and prevent enterprises from fraudulently enjoying tax and fee reductions
In recent years, the state has introduced a large number of tax reductions and exemptions, income tax concessions, excess credit refunds, and local fiscal and tax subsidy policies for small and micro enterprises, individual industrial and commercial households, high-tech industries, and manufacturing industries. The policies are highly inclusive and have obvious burden reduction effects.
However, after the policy became popularized, chaos emerged to defraud people into enjoying tax and fee benefits.
Some business entities do not meet the conditions for tax reduction and exemption. By concealing revenue, falsely reporting the number of employees, forging high-tech qualifications, falsifying business scale, concealing true profits, etc., they disguise themselves as small and micro enterprises, small-scale taxpayers, and high-tech enterprises, and illegally enjoy fiscal and taxation support such as value-added tax reduction, income tax deduction, and refund of excess tax credits.
There are also companies that split their operating entities, enjoy exemptions and exemptions across entities, falsify industry qualifications, falsely declare operating data, and defraud state fiscal and taxation support funds, resulting in the misplacement of preferential policies for enterprises and the lack of precise assistance for real enterprises that really need it.
Follow-up law enforcement and verification work will focus on item-by-item verification of enterprise declaration qualifications, revenue flow, employment and social security, industry filing qualifications, and true operating conditions, and accurately identify false declarations and fraudulent qualifications for tax fraud.
Anyone who has received tax refunds or tax exemptions in violation of regulations will be required to pay back the full amount, be fined in accordance with the law, and be included in the list of untrustworthy business operators.
Resolutely correct the fiscal and taxation policies that benefit enterprises, allow tax reduction and fee reduction funds to accurately flow directly to the real economy and formal merchants, and put an end to speculation and arbitrage.
5. Big data precise and smart supervision, cross-department information exchange and nowhere to hide
This multi-department joint rectification no longer relies on traditional offline door-to-door spot inspections, but comprehensively relies on financial and taxation big data, corporate operating data, import and export declaration data, capital flows, and industrial and commercial registration information to carry out three-dimensional risk control supervision.
The system will automatically warn you of abnormal company invoicing, discrepancies in the purchase and sale chain, large amounts of capital reflow, abnormal import and export documents, excessive fluctuations in declared revenue, and the cluster registration of shell companies.
Public security, taxation, market, and customs data are interconnected and shared, cross-regional case handling is coordinated, and the hidden space for crimes committed in different places and gangs is greatly reduced.
At the same time, we will comprehensively regulate the business order of self-employed individuals, trading companies, foreign trade enterprises, and intermediary fiscal and tax agency industries, and rectify the chaos of false invoices and false tax refunds in fiscal and tax agencies.
We will clean up and rectify the shell enterprises in the park and the leather companies registered in other places to reduce the environment for tax-related illegal activities from the source.
The law enforcement process adheres to verification in accordance with laws and regulations, distinguishes unintentional errors in financial and tax declarations from subjective and deliberate tax theft, and accurately cracks down on malicious crimes, without affecting the daily operations of normal and compliant small and medium-sized merchants.
6. Create a fair business environment and benefit the development of entity-operated enterprises
After the tax collection and administration order is standardized, the most direct beneficiaries are small and medium-sized enterprises, self-employed individuals, and foreign trade factories that keep accounts honestly, pay taxes in accordance with the law, and operate formally.
In the past, unscrupulous businesses relied on buying tickets to deduct taxes and cheating on tax arbitrage to reduce operating costs. Vicious competition at low prices put great pressure on law-abiding enterprises.
After the entire industry has cracked down on tax-related violations, market competition has become more fair, and the phenomenon of bad money driving out good money has significantly improved.
Enterprise tax and export support funds are accurately distributed, fiscal funds are used in practical ways, and the development environment of the real economy continues to improve.
The operations of all walks of life have become more transparent and standardized, and the order of the fiscal and taxation markets has steadily improved.
For the majority of self-employed individuals and small and medium-sized entrepreneurs, there is no need to worry about their daily operations being affected as long as they truthfully keep accounts and file tax returns in accordance with the law, do business and issue invoices authentically, and enjoy tax policies in compliance with regulations.
As long as you eliminate purchase and sale invoices and do not falsely declare tax refund subsidies, normal operations will be very stable.
7. Long-term tax supervision is fully rolled out, and the market development trend deserves joint discussion
Eight departments have simultaneously deployed work to crack down on tax-related violations, releasing a strong signal for normalization, refinement, and legalization of fiscal and tax supervision.
In the future, there will no longer be any chance of false invoicing, export tax fraud, or counterfeiting to obtain preferential tax treatment. Full-chain, cross-department, and big data law enforcement will become the norm.
Paying taxes in accordance with the law is the basic responsibility of every business entity. Export support and tax reduction and fee reduction are good policies that benefit the people and enterprises. They must not be exploited by lawless elements to steal state funds.
Standardizing the fiscal and taxation market can not only safeguard national tax security, but also stabilize the development of the real economy and optimize the business environment for mass entrepreneurship.
We also welcome everyone to communicate and discuss here: Which industries will be focused on tax-related risks in the future?
How can small and medium-sized merchants achieve financial and tax compliance in their daily operations without stepping into any pitfalls?
How can tax support for the foreign trade industry be implemented more accurately?
How to eliminate tax-related violations of shell companies from the source?
If you have any opinions on the rectification of market fiscal and tax order, you can leave a message in the comment area for exchange.
