1. At the time of final payment, the Inland Revenue Department will compare the actual duty-paid tax rate of each industry with the average tax rate of that industry according to its database. If the data is abnormal, the company will be inspected or even audited.

2. When deducting the value-added tax, it will be compared with the amount of taxable goods or services you have obtained in the input tax invoice according to your industry. If the data is abnormal, you will also face an investigation.

Take your question as an example:

On the issue of income tax, your actual tax rate is low, and when you make accounts, the cost of a certain type of current period you determine is too high.

On the issue of value-added tax, a certain type accounts for a large proportion of the VAT input tax invoices that you actually deduct.

Therefore, the tax bureau thinks that your cost composition ratio is abnormal, which should be based on the above reasons. You need to communicate your business model with the tax bureau and, if possible, file it with the competent tax authorities.

For example, in my previous mining company, because the raw materials used were tailings from upstream enterprises, my company had no exploration and mining costs at all, which was different from that of conventional mining companies, but because of this, we paid higher taxes, but even so, it was an anomaly. Therefore, we are investigated every year until the issue of expenses is filed with the competent tax authorities.