In 2020, there is a great deal of uncertainty about the global epidemic and the economic and trade situation. The country has introduced a number of tax incentives to reduce taxes and prevent and control epidemics, to help enterprises resume work and production, and to stabilize economic operations. According to the Ministry of Finance, in the first quarter of 2020, the national tax revenue amounted to RMB 3,902.9 billion, a year-on-year decrease of 16.4%. The policy of "tax reduction and burden reduction" by the tax authorities aims to reduce the tax burden on enterprises and, while improving the economic efficiency and scale of enterprises, promote continued investment, stimulate sustained economic growth and broaden the tax base. This also means that the tax authorities will strengthen tax supervision at the same time, and the potential tax risks faced by taxpayers will become more uncertain. Post-Epidemic Period - Tax Supervision Winds Under the epidemic, the country's economy is facing greater downward pressure in the short term, bringing more and more obvious pressure to the work of finance and taxation. In addition to the local inspection bureaus continuing to strictly implement the State Administration of Taxation's "double random, one open" tax inspection work, in terms of collection and management, local tax authorities are likely to strengthen tax compliance management through tax assessment, daily collection and management audit and control, and tax risk management for large enterprises. In the post epidemic period, it is expected that the tax supervision work of the tax authorities will focus on the following aspects: 1. Abnormal situations shown by the analysis of "big data" of Golden Tax Phase III The tax authorities have realized the systematic tax supervision of the whole chain of various tax types through Golden Tax Phase III. If the tax authorities find abnormalities in items such as income, cost, profit, inventory and bank deposit in the process of big data comparison, they may raise questions to the enterprises or even initiate inspections.
The tax authorities will pay key attention to enterprises with low value-added tax (VAT) amounts or chronically low corporate income tax contribution rates. At the vertical level, tax authorities can query the financial data (such as inventory) of upstream and downstream enterprises that have transactions with the enterprise through Golden Tax III Big Data and conduct cross-comparisons in order to assess whether there are any anomalies such as failure to issue invoices or recognize income.2. Tax Management of Large Enterprises The State is actively promoting institutional reform, and large enterprise management bureaus or professional management departments of large enterprises have been set up in various regions to set up professional teams to actively conduct risk-analysis oriented large enterprise tax management. The State actively promotes institutional reform, and has set up large enterprise management bureaus or large enterprise professional management departments, and formed professional teams to actively carry out risk-analysis-oriented large enterprise tax risk management. Enterprises belonging to the "Thousands of Groups" and some "Key Tax Sources" have been included in the scope of risk management of large enterprises. The large enterprise tax management departments of tax authorities at all levels will organize the collected enterprise risk management information to find out the tax-related risks of enterprises in the process of tax declaration, tax payment and fulfillment of other tax-related obligations, and may also require some enterprises to conduct self-inspection.3. Action to Combat Fraudulent and Illegal Taxation Since 2018, four ministries and commissions, including the State Administration of Taxation (SAT), the Ministry of Public Security (MPS), the General Administration of Customs (GAC) and the People's Bank of China (PBOC), have been working together to deploy measures to combat fraudulent and illegal tax evasion. have deployed special actions to crack down on false invoicing and fraudulent tax crimes, focusing on "fake enterprises" that do not have actual business operations but only develop invoices falsely, and "fake exports" that do not have actual exports but only obtain tax refunds fraudulently, in order to rectify and standardize the tax order and create a fair and orderly tax business environment. to rectify and standardize the tax order and create a fair and orderly business environment for taxation. The cases of false opening exist in various industries, especially in the commerce, medicine and construction industries. 4. Compliance with the application of preferential tax policies for epidemic prevention and control During the epidemic period, the state introduced a number of preferential tax policies for epidemic prevention and control to support the protection and treatment/supply of materials, encourage public welfare donations, support the public welfare and the development of the economy. supplies, encourage public donations, and support the resumption of work and production.