Audit case: The expenditure on the purchase of artworks, calligraphy and paintings and commissions exceeded 110 million

colliery

Unified social credit code: 9***2

Administrative penalty decision document number: *** Shui Er Ji Ji (2024) No. 6

Penalty Category: Fines

Penalty decision date 2024-07-01

Penalty content A fine of 50% of the underpaid tax will be imposed on your enterprise, that is, a VAT fine of 133,959.30 yuan, an urban maintenance and construction tax fine of 6,697.97 yuan, a resource tax fine of 266,068.65 yuan, a stamp duty fine of 997.76 yuan, and a personal income tax (undercounting income) fine of 326,344.99 yuan, with a total fine of 734,068.67 yuan.

The amount of the fine (10,000 yuan) is 73.406867

Facts of violation

1. Value-added tax

(1) Income from the sale of scrap without output tax According to the Interim Regulations of the People's Republic of China on Value Added Tax, in December 2021, 118,622.00 yuan of waste products were sold, sales revenue was 118,622.00 yuan, and output VAT was 13,646.78 yuan underdeclared.

(2) The sales of China Coal have not been excluded from the output tax From January to December 2023, the company understated its sales revenue by 1,864,828.50 yuan and underdeclared its value-added tax output tax by 242,427.7 yuan.

(3) The input tax on the purchase of services for personal consumption will be deducted from the output tax In May 2023, the input tax on the purchase of services purchased by personal consumption will be 11,844.12 yuan, and the output tax will be deducted, and the value-added tax shall be paid at 11,844.12 yuan.

2. Urban maintenance and construction tax

The underpayment of value-added tax is 267,918.60 yuan, and the urban maintenance and construction tax should be paid 13,395.94 yuan.

3. Additional education fees

The underpayment of value-added tax is 267,918.60 yuan, and the additional 8,037.55 yuan of education fees should be paid.

4. Local education surcharge

The underpayment of value-added tax is 267,918.60 yuan, and the local education surcharge of 5,358.37 yuan should be paid.

5. Land use tax

In January 2024, the land use confirmation was obtained, and the actual occupied land area was determined to be 52,599 square meters, the provisional land area was 51,400.24 square meters at the time of declaration, and the tax was underpaid by 5,993.80 yuan, and the total amount of 17,981.40 yuan should be paid in three years.

6. Property tax

In January 2024, the land use confirmation was obtained, and the land price was clarified to be 11,600,000 yuan, and the land price was not included in the original value of the property when declaring from 2021 to 2023. The total amount of property tax should be paid in three years is 334,079.94 yuan

7. Resource tax

In August 2023, the self-inspection made up the 2021 China Coal income of 1,623,190.04 yuan and did not pay the corresponding resource tax, and the self-inspection made up the 2022 China Coal income of 3,163,697.70 yuan and did not pay the corresponding resource tax. In 2023, the sales revenue will be 1,864,828.50 yuan, and the resource tax will be 149,186.28 yuan. A total of 532,137.30 yuan of resource tax should be paid in three years.

8. Stamp duty

The sale of China Coal was 1,623,190.04 yuan in 2021, 3,163,697.70 yuan in 2022, and 1,864,828.50 yuan in 2023, all of which did not pay the corresponding stamp duty, and the total stamp duty should be paid in three years of 1,995.52 yuan.

9. Water conservancy construction fund

In January 2021, the operating income was 68,861,768.39 yuan, and the water conservancy construction fund was underpaid by 34,430.88 yuan, and in 2023, China Coal was sold 1,864,828.50 yuan, and the water conservancy construction fund was 932.42 yuan. A total of 35,363.30 yuan should be paid to the water conservancy construction fund.

10. Individual income tax

(1) Paying consumption expenditures and purchasing family property for myself, family members and their related persons According to the notice of the Ministry of Finance and the State Administration of Taxation on standardizing the collection and administration of individual income tax for individual investors, the total amount of expenses such as "line portal" and "budget fee" shall be increased by 90,000 yuan through management expenses. The total amount of commissions for the purchase of artworks and calligraphy and paintings should be increased by 113,698,496.26 yuan.

(2) Under-recording of operating income In 2023, the sales of China Coal will be 1,864,828.50 yuan, which is not included in the operating income, and should be increased by 1,864,828.50 yuan.

(3) Reserves that have been accrued but not actually spent before tax In 2023, the production cost will be carried forward through the production cost - safety expense account of 13,500,884.50 yuan, and the actual expenditure for the year will be 4,751,077.75 yuan, which should be increased by 8,749,806.75 yuan, and 3,349,452.95 yuan has been adjusted by itself, and 5,400,353.80 yuan should be increased.

(4) Pre-tax expenses unrelated to production and operation On May 31, 2023, voucher No. 65 listed 197,402.28 yuan through management expenses-office expenses, which is not related to production and operation, and should be increased by 197,402.28 yuan.

(5) Tax adjustments shall be made for this inspection and compensation of taxes and fees. After inspection and adjustment, the overpayment of personal income tax in 2021 will be 121,312.56 yuan, and the adjustment of personal income tax in 2022 will be 130,681.33 yuan. After the adjustment in 2023, the individual income tax should be paid 42,112,130.75 yuan.

To sum up, the individual income tax should be paid 42,112,130.75 yuan in 2023, and after deducting the overpaid individual income tax of 1,213,121.56 yuan and 130,681.33 yuan in 2021 and 2022, the individual income tax should also be paid 41,860,136.86 yuan.

Basis for punishment According to the first paragraph of Article 63 of the Law on the Administration of People's Republic of China Tax Collection, "a taxpayer who falsifies, alters, conceals, or destroys account books and accounting vouchers without authorization, or lists more expenses or omits or understates income in the account books, or refuses to declare or makes false tax declarations after being notified by the tax authorities, and fails to pay or underpays the tax payable, is guilty of tax evasion." If a taxpayer evades taxes, the tax authorities shall recover the tax not paid or underpaid and the overdue fine, and impose a fine of not less than 50% but not more than five times the amount of the tax not paid or underpaid".

Penalty authority: The Second Inspection Bureau of the State Administration of Taxation *** Taxation Bureau

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