Tax violation case of ХХ Steel Co., Ltd.

1. Basic information of the enterprise

ХХ Steel Co., Ltd. is a large metallurgical enterprise with a marketing department, There are forty-four secondary accounting units including material supply company, furnace material supply company, construction engineering company, transportation department, machinery branch, sintering branch, steelmaking branch, ironmaking branch, and steel rolling branch. The company's finances are managed in a unified manner, with hierarchical accounting and unified purchasing and marketing of materials and products. The marketing department is mainly responsible for the sales of products, while the material supply company, furnace material supply company and international trade department are mainly responsible for the purchase of bulk materials.

The company is a listed company with a sound financial system, standardized accounting, detailed internal division of labor, and computerized accounting. The financial personnel of the branch factories are vertically managed by the company’s finance department. Each branch factory and company The costs of each link are calculated at planned cost prices and mutual settlement is made through internal banks. ×× Accounting Firm conducts independent audits on the company's financial status and accounting statements on a quarterly basis. It is a general taxpayer of value-added tax. The state tax authorities have set up a tax management team in the company and require all subordinate branches and companies to report progress on a monthly basis. , output tax, tax payable and other tax-related information, the company's finance department will compile and file tax returns at the end of the month.

In 2001, the company achieved main business income of 6,780.4052 million yuan, realized value-added tax of 461.0837 million yuan, and paid value-added tax of 453.1601 million yuan; in 2002, it achieved main business income of 6.8468605 million yuan, with value-added tax payable The tax amount is 482.8642 million yuan, and the value-added tax paid is 441.5206 million yuan.

In September 2003, the local National Tax Inspection Bureau conducted an audit of the company’s value-added tax from January 1, 2002 to December 31, 2003.

2. Pre-inspection analysis

Before the inspection, the inspectors analyzed the company’s financial accounting statements, tax returns and relevant tax information, and reviewed the audit reports issued by the accounting firm. report, and conducted an analytical review of the company's accounting system and internal control system. It is believed that the company's financial basic work is good, accounting standards are standardized, and the professional quality of financial personnel is high. The company has conducted self-examination on relevant tax-related issues and made a report. tax adjustments. Based on these circumstances and combined with the company's production and operation characteristics, the inspectors believe that the inspection should start from the following aspects:

(1) As the company is a large metallurgical enterprise with many branches and a large production scale, The production process requires high requirements and requires numerous auxiliary production departments to cooperate with the basic production department. Therefore, we should consider the tax treatment issues of the company's auxiliary production department providing self-made products and equipment for the company's production and construction projects; the issue of self-made products and materials being used by each other between subordinate branches with independent taxpayer qualifications; the company The issue of whether sales prices between secondary branches and affiliated enterprises are subject to tax treatment as business transactions between independent enterprises.

(2) Considering that the company had a relatively large technical transformation task in 2001 and 2002, and judging from the accounting statements, the increase in projects under construction and fixed assets in the two years was large, so it is necessary to check the Regarding the tax issues regarding the materials used for the project (cement, sand and gravel, wood, spare parts, etc.), the use of self-made products (steel, steel plates, water, electricity, gas, etc.) and equipment, it depends on whether the input tax is transferred out in accordance with regulations or deemed as such. Sales Processing.

(3) Through comparative analysis of the company's 2001 and 2002 financial statements and statement descriptions, it was found that the amount of "accounts receivable" was large and showing an upward trend year by year. After further detailed analysis, both Concentrated in a few large units. The inspectors believe that the steel market has been relatively good in recent years, and the phenomenon of "accounts receivable" increasing year by year is very abnormal, and they are concentrated in a few units. They doubt whether there is a certain relationship with these customers, and whether they have charged these customers for extensions. Possibility of paying interest.

(4) Since the company’s bulk purchases of raw materials are centralized purchased by material supply companies, furnace material supply companies, and the Ministry of International Trade, and then used by subordinate units according to their purposes and needs, the input tax is determined by the materials. Purchasing companies and supply companies report to the company's finance department to declare deductions. There are two kinds of picking lists used for picking up materials, that is, the "Project Picking List" is used for project picking, and the "Production Picking List" is used for production picking. The company's finance department makes unified tax adjustments for engineering picking. Therefore, the inspectors believe that the purpose of the materials received by each subordinate unit should be a focus of the inspection.

(5) Through comparative analysis of the company's "Production Cost Calculation Sheet" and "Unit Sales Cost Detailed Sheet", it was found that the unit production in June and December of 2001 and August and November of 2002 Compared with other months, the cost and sales cost fluctuate greatly. Based on their usual inspection experience, the inspectors analyzed whether there are products for self-use that are directly used in the finished product workshop without passing through the finished product warehouse; whether the loss of finished products is directly in the finished product workshop. The sales cost of sold products is carried forward, and normal accounting and tax treatment are not carried out. So the inspectors took this as another focus of the inspection. Finally, do some regular tax checks.

3. Inspection methods

(1) Find out the situation and analyze doubts

Due to the large scale of the company and the complicated accounting form, it is necessary to check the In the preparation stage, we understand the basic situation of the company under investigation in detail.

The first is to understand the company's production process and product structure. Including the enterprise's production capacity, technical equipment level, product variety structure, use, sales targets, as well as the ores, fuels, auxiliary materials, spare parts required for production, their unit consumption and purchasing channels; from ore input through roasting, primary refining, The entire production process of refining and finally rolling profile. The second is to understand the organizational form and management system of the enterprise. It mainly includes the names of various departments and secondary accounting units within the enterprise, their roles and affiliations in production and operations, whether there are production and operation branches in other places, and the form of management by the head office. The third is to understand the purchase, use, issuance and storage system of corporate inventory. Including the right to purchase materials, procedures for receiving materials, usage vouchers and product sales rights, product issuance and sales procedures (how to collect payment, invoicing, delivery, and settlement), as well as financial and tax treatment methods. The fourth is to understand the company's internal accounting system and financial management system. Including the enterprise's accounting level, settlement methods between internal departments (units), cost accounting methods, recognition time and basis of operating income, and value-added tax payment method (whether the main factory pays tax centrally, or each branch factory separately Tax payment), input and output tax collection methods, accounting statement summary preparation procedures, fund allocation authority and internal assessment system, etc.

On the premise of fully understanding the basic situation of the enterprise, analyze the links where tax problems may exist and determine the focus and direction of the inspection.

(2) Comprehensive analysis and looking for doubts

In response to the company's large inspection volume, we adopted a "three combinations" method during the inspection: namely, dividing the accounting units into Inspections are combined with summary verification inspections, comprehensive inspections of key links are combined with spot checks by link, and account book inspections are combined with on-site inspections.

First of all, check the financial accounting statements and tax declaration materials of the head office with the general ledger, subsidiary ledgers, relevant accounts, and subordinate secondary accounting units to see whether the upper and lower logical relationships are consistent; secondly, check The sales revenue, expenses, cost items and other accounts are analyzed monthly to see if they are reasonable; thirdly, based on the relationship between the relevant accounts, vertical and horizontal comparisons are made to see if they are normal; finally, in the comprehensive On the basis of the inspection, organize all inspection personnel to go back and conduct a comprehensive comprehensive analysis to find the doubtful points and links of existing problems.

Doubt 1: The company had large infrastructure projects in 2001 and 2002. Then check the project settlement sheets of the company and the construction unit. The proportion of raw materials occupied is small. Are there any self-produced products and raw materials? What about projects under construction?

Doubt 2: Such a large company has not had any inventory losses on its books in two years. Should it adopt other "flexible" means to deal with it?

Doubt 3: When checking the inventory and "Production Cost-Basic Production Cost" detailed accounts, it was found that the unit cost ratio of completed products carried forward in June and December of 2001, August and November of 2002 In the past, the monthly growth rate was about 40%, which was much higher than the company's current sales revenue growth rate. There must be something fishy in this?

Suspicious Point 4: When checking the detailed account of "Other Accounts Payable", it was found that "Real Estate Development Co., Ltd. of a County in Shandong Province" has credit balances and no debit balances every month since February 2001. , and the numbers are getting bigger and bigger. The summary column of the detailed account indicates "loan", which reached more than 6.3 million yuan in December 2002. Does this Building Materials Sales Co., Ltd. borrow money from this company every month?

Suspicious point 5: When checking the detailed account of "Accounts Payable", it was found that the monthly credit balance of "Seabed Gold Sand Company of a certain city in Jiangsu Province" was large, up to more than 7 million yuan. It stands to reason that in recent years, iron sand has The market is tight, so it's impossible to pay so much money? Why doesn’t the other party want to pay me until the end of the year?

(3) In-depth inspection to resolve doubts.

With each doubtful point in mind, the inspectors conducted routine inspections while carefully thinking and analyzing each doubtful point. Specifically, the inspection method takes into account the company's high level of financial accounting and large business volume. During the book inspection, a combination of random inspections of general links and departments and detailed inspections of key links and units is adopted. The forward inspection method and the reverse inspection method are combined. A combined method; in terms of inspection units, the focus will be on relevant material supply, machine repair, water supply, power supply, steam supply, marketing, cost accounting and other departments as well as the finance department, major ironworks, rolling mills, machinery factories, and automobile transportation companies. and other relevant auxiliary branches; in the inspection subjects, the company's "raw materials", "finished products", "projects under construction", "main business income", "production costs", "accounts receivable", "payables" Current accounts such as "taxes" and "other receivables" are the focus of the inspection. During the inspection, focus on capturing bits and pieces of information and clues, seize valuable clues in the blink of an eye, pay attention to words and colors, and see the essence through phenomena. Carry out in a cycle Analyze, summarize, judge, reason, constantly innovate thinking, and adjust inspection methods to form clear and efficient inspection ideas and improve work efficiency.

In addition to discovering some problems according to routine inspections, the inspection also clarified the following doubts:

1. During the inspection of "××First Machinery Branch", it was discovered that in 2001 In October, there was an accounting entry of "Debit: internal transactions 18882140.79 yuan, credit: raw materials 10021146.18 yuan, loan: internal profit 7157399.76 yuan, loan: tax payable? Value-added tax payable (input tax transfer out) 1703594.85 yuan", attached later Original vouchers: "Project-specific Material Requisition List" and "Complete Equipment Handover Order" issued by the Equipment Department, with the product name "H-type" steelmaking production equipment. This aroused the vigilance of the inspectors, and after further questioning of the relevant personnel, they had to confess that the equipment was self-made by the machinery factory and was not treated as sold, thus evading the illegal value-added tax of 1.8274 million yuan.

2. When inspecting the "Production Cost" Detailed Account and "Sales Cost Detailed Account" of the "First Steel Rolling Plant" and the "Third Steel Rolling Plant" in 2001 and 2002, it was found that in June and December 2001 Compared with other months, the unit production costs and sales costs in August and November 2002 fluctuated greatly. After further inspection, it was found that the km type steel and ko type steel plates ended in June 2001 and August 2002. The production cost of completed products increased by more than 50% compared with previous months. The sales cost of Kw type angle steel and Kc type steel in December 2001 and November 2002 increased by 42% and 53% respectively compared with other months.

So the inspection team divided the work into groups. First, they checked the revenue sales quantity and amount in the monthly sales daily report with the carry-over cost quantity and unit price on the "Sales Cost Detailed Statement"; second, they checked Go deep into the production workshop to conduct cost verification item by item on the "Unit Cost Calculation Sheet" for each product in the corresponding month.

After verification, it was found that the company, in June 2001 and August 2002, did not store its own products in the warehouse, but directly provided them to external construction units in the finished product workshop for processing. The production cost value and unit consumption of the products transferred into the warehouse were summarized, and the sales revenue was under-declared by 4.8666 million yuan; secondly, in December 2001 and November 2002, the finished products were abnormally lost, and no accounting treatment was performed. The warehouse increased the sales cost of sold products to "digest" the illegal loss of 3.1227 million yuan. In these two cases alone, 1.197 million yuan in value-added tax was evaded.

3. When inspecting the detailed accounts of "Accounts Payable" of the XX Material Supply Department in 2001 and 2002, it was found that the monthly credit balance of "Seabed Gold Sands Company of a certain city in Jiangsu Province" was large, up to more than 720. Ten thousand yuan. It stands to reason that the iron sand market has been tight in recent years, and it is impossible to pay such a large amount of goods. Why does the other party not want to pay at the end of the year? When checking the detailed account of "Other payables" of the XX Marketing Department, it was found that the account name was "Shandong County Real Estate Development Co., Ltd." from February 2001 to December 2002. There were credit balances every month, and there was no credit balance. The debit balance, with "loan" indicated in the summary column of the detailed account, amounted to more than 6.3 million yuan by December 2002. Does this real estate development company borrow money from this company every month? These two abnormal interactions have aroused the high alertness of our inspectors!

In order to find out the situation and fear of alerting the enemy, the inspectors remained calm and reported to the leaders of the Inspection Bureau in a timely manner. Therefore, it was decided to divide the inspectors into two groups for external transfer, one to a real estate development company in a county in Shandong Province, and the other to a submarine gold sand company in a city in Jiangsu Province.

As a result, a group of people who went to a real estate development company in a county in Shandong Province, with the cooperation of the local taxation office, investigated the authenticity of the transaction and found that there was no such loan business, but it was with The XX Steel Co., Ltd. has a business relationship. Later, with the support of the company, we found Manager Zhang who was responsible for material procurement of the real estate development company. He told us truthfully that in recent years, due to excessive capital investment and tight liquidity in their real estate company, they were unable to pay for the purchased building materials in time. , had to reach an agreement with XX Steel Co., Ltd. to pay interest every month at 1% of the total amount owed (accounting treatment of Real Estate Development Co., Ltd.: debit: financial expenses, credit: bank deposit. Accounting treatment of Steel Co., Ltd.: debit: bank Deposits, loans: other payables). At this point, the true nature of the problem was revealed. It turned out that the deferred payment interest of 6.3125 million yuan collected by XX Steel Co., Ltd. from 2001 to 2002 was always listed in the "other payables" account.

When the inspectors who went to the Haihai Jinsha Company in a city in Jiangsu Province checked the "accounts payable" (Jinsha Company's "accounts receivable") with the company's financial staff, they found that since 2001 The balances didn't match up at first, and the difference got bigger and bigger.

After checking one by one, the inspectors found that the submarine gold sand company in a city in Jiangsu Province settled the purchase of iron sand rebates on the June 112# voucher, the December 124# voucher, and the July 19# voucher and the December 186# voucher in 2002 (accountant Entry: Debit: product sales expenses, credit: accounts receivable -----×× Steel Co., Ltd., the summary column indicates "Settlement of iron sand purchase rebate"), which offsets the "receivable" of ×× Steel Co., Ltd. "Collecting accounts", and XX Steel Co., Ltd. has never carried out accounting processing, thus forming the illegal fact that the difference in "accounts payable (collecting)" between the two companies is 7.233 million yuan, and the value-added tax has been evaded by 1.2296 million yuan. So far, all The problem has come to light.

4. When checking the "Investment Income" account, we found that the "Investment Income" account in December 2002 reflected an investment income of 812,000 yuan that year. Then we checked the "Long-term Investment" account and found that the company had no external investment. , then checked the accounting voucher and found that December 1485# voucher "received investment income of 812,000 yuan from Shanghai Zhenxing Building Materials Trading Co., Ltd.". The inspectors found it very strange. Did the steel company invest in Shanghai Zhenxing Building Materials Trading Co., Ltd.? Where do the funds come from? For this reason, the inspectors were in trouble and regarded it as another important doubt point in the inspection.

The inspector continued to conduct routine inspections with various questions, and suddenly found that there was also an account named "Shanghai Zhenxing Building Materials Trading Co., Ltd." in the "Accounts Receivable" detailed account, and business occurred frequently , the balance at the end of the month is not large. The inspectors immediately conducted a comprehensive analysis of the previous doubts, adjusted their inspection ideas, and made various speculations and judgments. After careful inspection of each sales transaction between the steel company and Shanghai Zhenxing Building Materials Trading Co., Ltd. from 2001 to 2002, it was found that the average sales price of steel sold to the trading company was 2,280 yuan per ton, and the steel plate was 2,420 yuan per ton. Compared with other domestic products, the sales prices are obviously on the lower side. Steel products are about 825 yuan per ton, and steel plates are about 872 yuan per ton.

Faced with the problems discovered during the inspection, corporate financial personnel had to tell the truth. In order to open up the market and expand sales outlets, our company jointly invested and registered with a Shanghai trading company *** in August 2000 to establish "Shanghai Zhenxing Building Materials Trading Co., Ltd." with a registered capital of 12 million yuan and our share capital of 5 million yuan. The other party has 7 million yuan. At that time, according to the agreement, we did not invest capital at first, but our company was stipulated to supply products at cost price in the first and second years, and at a gross profit of 5% from the third to fifth years (the gross profit of similar products was 32 %) every year, 80% of the profits earned will be used to offset our investment (equity capital). After the offset reaches 5 million, dividends will be distributed according to the equity capital. Therefore, our company did not reflect "long-term investment" on the books. It was not until 2002 that the investment funds were fully paid before it participated in dividends, and there was "investment income" on the books. At this point, all doubts have been cleared up. Only for this reason, the sales revenue in the two years was undercounted by 14.0962 million yuan, and the value-added tax was underdeclared by 2.3964 million yuan.

(4) Policy attack and consolidate evidence

When the inspectors have a large number of facts and evidence, they conduct inspections on the company’s financial personnel, warehouse custodians and corporate legal persons. ask. At the same time, we actively publicized tax policies, implemented policies to attack their hearts, and gradually told them the true situation of the case, causing their psychological defenses to completely collapse. Encourage them to truthfully explain the true situation, so as to meet our needs for further evidence collection, expand the results of the inspection, and turn the case into a solid case.