Tax related criminal legal risk (Part Two)

   -- criminal law amendment (eight) changes to the tax related provisions of significance

Author: Huang Jun (lawyer, CPA, CPA)

Nineteenth meeting of the Standing Committee of the people's Republic of China the Eleventh National People's Congress in2011Years2Month25Through the criminal law amendment (eight) the biggest bright spot is cancelled13Charges of death penalty, in this is to abolish the death penalty13Charges, tax related crime accounted for two: A, cancellation of falsely making out special invoices for value-added tax, for export rebates, tax invoice crime death penalty; two, cancel the forge, sell forged special ticket tax crime death penalty.

At the same time, the criminal law amendment (eight) also increased the two tax related criminal punishment: A, except for any other invoices of article 205th of the criminal law, if the circumstances are serious shall be sentenced to criminal punishment, especially serious plot also aggravated punishment; two, the knowing is forged invoices and hold, a large amount of a criminal punishment, the huge also aggravated punishment.

The criminal law amendment (eight) to the tax amendment provisions:

Thirty-two, article 205th paragraph second delete.

Thirty-three, in article 205th of the criminal law. After adding a, as one of 205th: "other invoices Xukai 205th article of this law, if the circumstances are serious, is less than two years imprisonment, criminal detention or control, and shall also be fined; if the circumstances are especially serious, department for more than two years of less than seven years imprisonment, fined fine.

Units committing the crime mentioned in the preceding paragraph, it shall be fined, and the person in charge directly responsible and other persons directly responsible shall be punished in accordance with the provisions of the preceding paragraph."

Thirty-four, article 206th paragraph second delete.

Thirty-five, in article 210th of the criminal law. After adding a, as one of 210th: "knowing is forged invoices and hold, large quantity, is less than two years imprisonment, criminal detention or control, and shall also be fined; the number of big, two to seven years in prison, fined.

Units committing the crime mentioned in the preceding paragraph, it shall be fined, and the person in charge directly responsible and other persons directly responsible shall be punished in accordance with the provisions of the preceding paragraph."

The criminal law amendment (eight) two capital punishment are related to value-added tax invoices, the main reason is1994Years after the reform of the tax system, the VAT is a deduction mechanism, namely the input tax deduction of more, more also, pay taxes is less, resulting in the invoice market demand, and demand there will be supply, so false, forged and sold the special VAT invoice illegal crime spreading the potential, the national tax loss is very serious, in the circumstances are in urgent need of the introduction of a severe law against this false, forged and sold the special VAT invoice illegal crime, therefore, the NPC Standing Committee in1995Special provisions for the VAT invoices, for defrauding export tax refunds, tax invoices and forgery, sells forged special ticket tax crime the highest can be sentenced to death. But with the tax reform and tax supervision measures to gradually improve, falsely making out special invoices for value-added tax crime has been significantly curbed, therefore, to abolish the death penalty in accordance with the current situation of social development. The criminal law amendment (eight) after the implementation of the death penalty, no tax related criminal penalties, the maximum penalty is life imprisonment.

Our turnover tax is the value-added tax and business tax, the amendment of the penal code (eight), tax related provisions of criminal law is mainly to value-added tax. But in reality, some units and individuals to pay business tax, in order to virtual listed transaction cost, cover flow of funds, realize tax evasion and avoidance and other illegal purposes, but also a large number of purchase, the use of false or illegal generation invoice (non value added tax invoices) behavior. In addition, some units and individuals for expenses, often also wantonly purchase of false invoices, false invoices to lead to large inflows of society, not only to the state tax loss caused, serious harm to the social and economic order, but also smuggling, money laundering, corruption and bribery and other crimes to provide a shortcut. According to media reports, the national procuratorial organs2010Years received invoice crime3234Member, rise respectively compared to the same period56.16%; approval of arrest4335People, rise compared to the same period57.29%. Obviously, the tax invoice crime is very necessary.

The criminal law amendment (eight) one of the new tax provisions of falsely issuing exclusive value-added tax invoices or other invoices to defraud export tax rebates, other invoices tax deduction of the outside of the behavior of criminal punishment. According to the regulations, if the circumstances are serious, is less than two years imprisonment, criminal detention or control, and shall also be fined; if the circumstances are especially serious, department for more than two years of less than seven years imprisonment, fined. The new regulations make up prior to falsely issuing exclusive value-added tax invoices or other invoices for the loopholes in legislation will not be defrauding export tax refunds, other invoice tax deduction of the outside of the behavior of criminal punishment.

The criminal law amendment (eight) new tax clause two is to use forged invoices and hold the behavior of criminal punishment. According to regulations, large quantity, is less than two years imprisonment, criminal detention or control, and shall also be fined; a great number of, two years less than seven years imprisonment, fined.