State Administration of Taxation: Strengthen efforts to rectify illegal investment promotion and "invoice economy" tax-related issues

On April 1, at a press conference, Wang Daoshu, Deputy Director of the State Taxation Administration, introduced that, in the first quarter, national tax authorities collected more than 8.4 trillion yuan in tax revenue and fees; they have actively advanced reforms in the tax sector and steadily promoted the smooth implementation of the VAT Law and its implementing regulations; they have increased efforts to address violations in areas such as improper investment promotion and tax-related issues involving the so-called “invoice economy,” to help promote the development of a unified national market; they have strengthened tax compliance management, increased tax supervision in key areas, and worked to ensure a good start to the tax work under the “15th Five-Year Plan.”

According to the briefing, this year the State Taxation Administration will continue to base its work on the theme of “Taxation, Rule of Law, and Fairness,” and will carry out the 35th National Tax Promotion Month activities in April. During the promotion month, tax compliance and good-faith tax payment and remittance typical cases will be released in a concentrated manner by industry and by category. Meanwhile, a list of A-level business entities with tax payment and remittance credit will be published, and incentive measures for tax payment and remittance credit will be promoted through multiple means, guiding a broad range of business entities to operate in a compliant manner and pay taxes and fees according to law. Also in April, the eight-department regular joint work promotion meeting on the “15th Five-Year Plan” tax-related law enforcement will be held to arrange and carry out this year’s joint special campaign, and to improve the efficiency of investigating and handling cases involving tax-related illegal crimes. **Focusing on areas such as the “invoice economy,” internet celebrities, medical aesthetics, and gold and jewelry, as well as illegal acts such as issuing false invoices and defrauding taxes, typical cases involving tax-related violations will be exposed. In conjunction with the one-year anniversary of the implementation of the Measures for the Administration of Tax-Related Professional Services (Trial), a batch of illegal and irregular cases in which tax intermediaries help taxpayers evade the payment of taxes will be exposed. Through using cases to explain taxation, warning through cases, and promoting governance through cases, they will further send a strong signal that “those who commit illegal acts will be dealt with severely, and those who instigate will be punished strictly.”