Everyone is familiar with enterprises making zero declarations. However, zero declarations or negative declarations for a long period of time are abnormal declarations and should be included in key monitoring targets. Moreover, there are also tax risks, which many companies have not thought of. So, how to define zero declaration? Why should it be included in key monitoring? What are the consequences of long-term zero declaration?

The definition of zero declaration

Zero declaration means that no taxable income occurred during the period of the enterprise's tax declaration. This situation generally exists when the business has not been carried out or the income in the current period has not been in accordance with the regulations. Report truthfully.

What is long term? Under normal circumstances, the tax authorities consider more than half a year as long-term. Of course, the specific time limit is still subject to the time determined by the tax authorities of each province and city.

Why is long-term zero declaration included in key monitoring?

First of all, the core purpose of establishing an enterprise is to create value. Long-term zero declaration means that there is no source of income for a long time, so the enterprise’s It won't last long.

Secondly, the operation of an enterprise has costs, such as personnel wages, storefront rent, water and electricity bills, etc. If there is no source of income, then I can only tell you haha, after all, no one wants to "lose money" Make money and shout."

Furthermore, if a company that has made zero declarations for a long time has invoices, the risk will be greater, and it may involve "escape", false invoices, concealment of income, etc. The consequences will not be elaborated one by one!

The consequences of long-term zero declarations

◆The tax authorities included taxpayers in the scope of key monitoring and conducted tax assessments in accordance with relevant regulations. During the assessment process, they were found to have concealed income, For acts such as falsely issuing invoices, the taxpayer will be required to pay back the current tax and late payment fees, and may be fined in accordance with regulations. If the circumstances are serious, the taxpayer will be transferred for inspection;

◆If the taxpayer is a fugitive, he will be included in the major list according to regulations. The list of untrustworthy persons shall be announced to the public. At the same time, the system shall be used to check the "payee" to check whether it has obtained false VAT invoices in good faith, malicious collusion, etc., and shall investigate and deal with them in accordance with regulations. At the same time, the fleeing taxpayers will be directly assessed as D Class D taxpayers shall bear the consequences of Class D taxpayers;

◆For taxpayers who have made zero declarations for a long time and hold invoices, the invoices will be downgraded and the quantity will be reduced. At the same time, taxpayers can be required to go to the tax authorities regularly to verify the use of invoices in accordance with regulations;

◆After verification, the tax authorities can use the cost and expense formula to determine the taxpayer's income in accordance with relevant regulations.

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