The Inland Revenue Department will generally focus on the following four aspects:
1, check the contract. Inquire about the specific contents of the contract signed by both parties, and check whether there are abnormal transactions from the actual business scope and needs of the enterprise. Large transaction contracts should be consistent with the main products and services of the enterprise, and the proportion of part-time business will not be too large.
2. Check the invoice. See whether the invoice issued by the seller conforms to the business within the business scope of the enterprise, and whether the invoice collected by the buyer is needed for the daily operation of the enterprise; Quantity, unit price, model and specification are in line with market conditions.
3. Check the upstream and downstream. Check the upstream and downstream account books to check whether the economic business content recorded by the buyer in the same transaction is consistent with the sales policy, so as to ensure the authenticity of the business.
4. Check the flow of funds. Based on the settlement method, query whether there is no real capital flow between the bank card and the cash direction, or whether the capital flow returns abnormally, and whether the capital flows of both parties are inconsistent. In the face of invoice problems, we must ensure that invoices, business and funds are consistent, and provide a complete and true chain of evidence, otherwise it may still be identified as a problem. For enterprises with a large proportion of cash payment, it is necessary to compare with the same industry to see if it is abnormal and check whether there is indirect evidence to prove cash receipt and payment.
Legal basis:
People's Republic of China (PRC) tax collection management law
Article 38 If the tax authorities have reason to believe that taxpayers engaged in production and business operations have evaded their tax obligations, they may order them to pay the tax payable within a prescribed time limit; If a taxpayer is found to have obviously transferred or concealed his taxable commodities, goods and other property or taxable income within a time limit, the tax authorities may order the taxpayer to provide tax payment guarantee. If a taxpayer cannot provide a tax payment guarantee, the tax authorities may take the following tax preservation measures with the approval of the director of the tax bureau (sub-bureau) at or above the county level:
(1) Notify the taxpayer's bank or other financial institution in writing to freeze the taxpayer's deposits equivalent to the taxable amount;
(2) Seizing or sealing up the taxpayer's commodities, goods or other property whose value is equivalent to the tax payable.
If the taxpayer pays the tax within the time limit specified in the preceding paragraph, the tax authorities must immediately lift the tax preservation measures; If it fails to pay the tax within the time limit, with the approval of the director of the tax bureau (sub-bureau) at or above the county level, the tax authorities may notify the taxpayer's bank or other financial institution in writing to withhold the tax from its frozen deposits, or auction or sell the goods, articles or other property that have been sealed up or detained according to law, and use the proceeds from the auction or sale to offset the tax.
Houses and articles necessary for individuals and their dependents to maintain their lives are not within the scope of tax preservation measures.