Chinese officials exposed 5 cases of tax-related intermediaries illegally helping people to evade taxes

China News Service, Beijing, October 12 (Reporter Zhao Jianhua) On the 12th, the State Administration of Taxation of China exposed five cases of tax-related intermediaries illegally helping others to evade taxes, involving Anhui, Guizhou, Guangxi, Zhejiang, Shandong and other places. Those involved were subject to corresponding penalties such as tax recovery and fines.

In the above-mentioned cases, individual illegal tax-related intermediaries peddled illegal plans under the guise of "tax savings" to induce and help companies illegally use tax benefits to evade taxes; some themselves concealed income through private collections, and also assisted companies in splitting income and making multiple expenditures; there were also individuals who privately undertook tax-related business, forged contracts, fabricated documents, and tampered with transaction prices to help companies pay less taxes.

Finance and taxation experts analyzed that those involved turned their professional advantages into "tax avoidance ideas" and used illegal means to help agency companies evade tax obligations. On the surface, this kind of behavior is to help enterprises reduce tax costs, but in reality it relies on forged information, fictitious transactions, and artificial tampering of business facts to achieve underpayment of taxes.

Peng Xiaobao, associate professor at the School of Public Administration at the University of Science and Technology of China, said that the essence of the "tax-saving" tricks promoted by many intermediaries on the market is to create false appearances by changing contracts, documents, and capital flows, breaking through the bottom line of the tax law. It seems to be "tax-saving", but in fact it is "digging holes." Any plan that requires forging information, splitting businesses, or changing transaction unit prices contains significant tax-related risks.

Data released by the State Administration of Taxation shows that in the first half of this year, more than 500 illegal tax-related intermediaries were investigated and punished nationwide in accordance with the law for helping service recipients to evade taxes through malicious planning and collusion, and punitive measures were taken against relevant institutions and practitioners in accordance with the law, such as being listed as dishonest entities in tax-related services. The tax department will continue to strengthen the supervision of tax-related professional service industries, investigate and deal with illegal activities of tax-related intermediaries in accordance with the law, maintain a fair and just market competition order, and protect national tax security and the legitimate rights and interests of taxpayers.