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Does Reclassifying Shareholder Loans Recorded under Other Receivables as Profit Distribution Give Rise to Additional Corporate Income Tax Liabilities?
June 23, 2026, 10:11 a.m.
1513Views
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Two Years After the Launch of Reverse Invoicing: How Can the Resource Recycling Industry Mitigate Tax Risks?
June 17, 2026, 5:16 p.m.
1916Views
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Yuewen Group Discloses RMB 300 Million Tax Supplementation Involving Horgos-Related Entities, Reflecting Tax Risks in the Film and Entertainment Industry
Editor's Note: In June 2026, Yuewen Group issued an announcement disclosing that one of its subsidiaries was required to make supplementary tax payments of approximately RMB 300 million in total for corporate income tax and late payment surcharges for the years 2020 to 2022, arising from tax risks related to entities associated with Xinjiang Horgos. Using this announcement as a starting point, and drawing on a Nomura research report's finding that the supplementary payment is primarily linked to New Classics Media's tax obligations, this article traces the VIE structure and domestic equity chain formed through Yuewen Group's acquisition of New Classics Media, analyzes the underlying causes of the supplementary tax payment, reviews the policy evolution of the "substantive operations" conditions for Horgos tax incentives, and highlights tax risks in the film and entertainment industry — with the aim of providing reference for relevant market participants.June 16, 2026, 2:36 p.m.
1993Views
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Countdown: 18 Days Left! Tax Risks for Resident Individuals with Overseas Income and Guidelines for Compliant Tax Filing
The tax filing period for resident individuals declaring overseas income earned in 2025 will close on June 30. After the deadline, will adjustments be made to the statute of limitations for recovering unpaid overseas income taxes and the practical implementation rules for income from stock transactions? What tax risks will resident individuals face if they fail to file tax returns for overseas income or submit filings with figures materially inconsistent with data held by tax authorities? With only 18 days remaining, how can resident individuals complete tax filings in full compliance with regulations? This article analyzes the above issues and puts forward corresponding recommendations.June 12, 2026, 3:59 p.m.
2282Views
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Six Natural Persons Establish Multi-Layer Nested Partnership Structure to Dispose of Listed-Company Shares; Tax Authority Pierces Structure and Recovers Nearly RMB 20 Million in Individual Income Tax
Editor's Note: Partnership enterprises follow a "distribute-first, tax-later" principle. Certain taxpayers have sought to reduce the overall tax burden on share-disposal income to extremely low levels by constructing multi-layer nested structures combined with deemed-profit assessment. Whether such structures can withstand scrutiny under the "legitimate business purpose" standard is the central focus of tax audit investigations. This article draws on a real case in which six natural persons established a multi-tier partnership structure and applied deemed-profit assessment to dispose of shares in a listed company. It reconstructs the full picture of how the structure was assembled and how the tax authority subsequently pierced it, analyzes the authority's reasoning for disqualifying deemed-profit assessment and imposing look-through taxation, maps out the systemic tax risks that multi-layer nested partnership structures face under the current regulatory environment, and offers comprehensive compliance recommendations.June 8, 2026, 5:21 p.m.
2706Views
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Learning from Cases: Analysis of Multi-Type Tax Risks for Coal Enterprises and Compliance Recommendations
Editor's Note: The coal industry has long been a key and challenging area for tax administration due to its production capacity quota management system, complex industrial chain, and extensive cash transaction scenarios. When coal extracted in excess of quotas enters the stream of commerce, downstream enterprises are unable to obtain input tax invoices. Such downstream enterprises often resort to concealing sales revenue, obtaining third-party invoices issued on their behalf, or fabricating transportation expenses to reduce their tax burden. However, against the backdrop of the full implementation of the Golden Tax Phase IV system and the interconnection of data across multiple government agencies, cases of tax evasion and fraudulent invoicing by coal enterprises have erupted with increasing frequency. The investigation and handling of major tax-related cases involving coal enterprises sends a clear signal of intensified regulatory oversight to the industry. This article, drawing on relevant tax laws, regulations, and practical case studies, systematically analyzes the various tax risks facing coal enterprises and provides guidance for strengthening tax compliance.June 5, 2026, 10:05 a.m.
2873Views
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Three Latest Tax Cases Uncover Tax-related Risks in the Agricultural Product Industry
As a core industrial pillar underpinning the development of agriculture, rural areas and farmers (the "Three Rural Issues"), the agricultural product sector is deeply embedded in rural revitalization and the modernization of agricultural and rural development, occupying a strategically pivotal position in China’s overall national development agenda. Nevertheless, the unique provisions governing agricultural product taxation have rendered the industry prone to tax recovery orders, late payment surcharges, findings of tax evasion and export tax fraud, consistently landing it under intensive scrutiny from tax audit authorities. Drawing on typical publicly disclosed tax cases in the agricultural product sector released this year, this article pinpoints prominent industry-wide tax compliance pitfalls and puts forward practical compliance suggestions for market participants operating in the sector.June 5, 2026, 10:03 a.m.
3025Views
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Partnership Enterprise Dissolution and Liquidation Income of CNY 2.8 Billion Subject to Unlawful Approved Assessment; Tax Authorities Pursue Individual Income Tax Exceeding CNY 300 Million Against Nat
Editor's Note: Tax authorities have recently investigated and handled a case involving a partnership enterprise's unlawful use of approved assessment. In this case, the natural person partners were determined by the tax authorities to owe supplementary individual income tax of CNY 333 million, plus corresponding late-payment surcharges. Drawing on this case, this article analyzes the tax treatment of non-trading transfers of listed company shares held through equity holding platforms, whether an approved assessment qualification obtained during the operational period applies to the dissolution and liquidation phase, and whether late-payment surcharges should be levied on the natural person partners under the "distribute-first, tax-later" model — with the aim of providing reference for related practice.June 1, 2026, 5:07 p.m.
3509Views
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How Can Export Enterprises Mitigate Tax Fraud Risks Amid Intensified Supervision in the Export Tax Refund Sector in 2026?
Editor's Note: In recent years, the coordinated implementation of measures such as paperless customs clearance, foreign exchange administration reform, and facilitation of cross-border RMB settlement has not only created an efficient and convenient business environment for export enterprises but also strongly boosted the steady growth of foreign trade. Meanwhile, while enjoying policy dividends and customs clearance convenience, export enterprises have entered a phase of more precise supervision, stricter law enforcement, and closer cross-departmental collaboration for stringent compliance supervision. In view of this, this article starts with the latest regulatory trends in the foreign trade industry, focuses on export tax fraud cases reported in 2026, and puts forward defense points for export enterprises' reference.May 29, 2026, 3:31 p.m.
3680Views
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Why Are High and New Technology Enterprises Frequently Subject to Tax Clawbacks? An Analysis of Tax Risks and Compliance Recommendations
Editor’s Note: As of May 25, 2026, more than 2,900 enterprises nationwide have had their High and New Technology Enterprise (HNTE) qualifications revoked during the year, reflecting a continuing trend of stricter regulatory oversight of HNTE status across China. This underscores the requirement that enterprises must continuously meet the qualification criteria throughout the validity period of their HNTE status and maintain ongoing, dynamic compliance. Against this backdrop, this article, drawing on relevant tax-related cases, systematically examines the tax risks arising in the application of preferential tax policies for HNTEs and provides tax compliance recommendations for reference by high-tech enterprises.May 28, 2026, 11:19 a.m.
4036Views
