Shenzhen Stock Exchange pays attention to flexible employment business, tax-related vote compliance should not be “flexible”

2022-05-14 0 By

Editor’s note: recently, the smooth handle information service co., LTD. Of shenzhen stock exchange attention letter of reply, the announcement of the disclosure: in October 2021, the smooth office six wholly owned youthful flexible employment business for failing in the 2020 annual enterprise income tax liquidation period cost in the invoice, by tax authorities to identify the existing enterprise income tax risk.In 2022, tax, public security, audit and other departments will jointly investigate illegal tax-related intermediary agencies, involving illegal flexible employment platforms and illegal invoicing enterprises, becoming the focus of investigation and punishment.In flexible employment continues to hot, relevant companies take the opportunity to go public, relevant departments are focused on flexible employment business, all kinds of signs convey an obvious signal is: employment can be flexible, but “ticket” can not be “flexible”.This paper will take the successful “announcement” as the lead to analyze the legal risks of flexible employment related to taxes and bills, so as to provide readers with pleasure.I. Three major tax-related and tick-related legal risks of flexible employment businessHas not obtained a document of compliance, not face mending tax compliance certificates, and punished according to do the announcement, its shenzhou ferry person education technology co., LTD., the smooth quality (zhoushan) data technology co., LTD, and so on six wholly owned youthful are engaged in the business of human capital, flexible recruitment business, to carry on the business of natural person or the third party payment service of cost price,During the period of settlement and payment, the Tax bureau of Zhoushan Port Comprehensive Bonded Area of the State Administration of Taxation issued a Notice of Ordered Correction within a specified period to the six companies on November 4, requiring the six companies to replace or replace the invoices in accordance with the provisions before January 3, 2022.Smooth do “announcement” said: 6 sun companies……There are various business forms involved in flexible employment, the number and scale of corresponding enterprises and flexible employment personnel are huge, the regions involved are all over the country, and the methods of capital settlement and cost invoice are different…Up to now, the rectification is still in progress. Yiqiao Finance and Taxation Technology and the 6 sun companies involved in the rectification have not received a clear reply from the tax authorities, nor have they received any handling opinions on the failure to complete the rectification within the prescribed time limit.According to the Notice, one of the legal risks of tax and invoice related to flexible employment business is failure to obtain compliance certificates or non-compliance of obtaining certificates.”Deducted before duty of enterprise income tax certificate management method” (the state administration of taxation announced 28 2018), article 9 of the regulations, enterprises in domestic spending projects belonged to the VAT taxable items, to each other as for taxation registration of VAT taxpayer, their spending to invoice (including the invoice) by the tax authorities must in accordance with the relevant provisions as the pre-tax deduction vouchers;To each other as do not need to register with the tax authority in accordance with the law of the unit or is engaged in the retail business of individual, its spending to the tax authorities must invoices or receipts and internal credentials as a pre-tax deduction vouchers, receipts shall include name of receiving company, the individual’s name and id number, item, payment amount and other relevant information.For flexible employment, if any workers paid less (less than 500 yuan/day at a time, caishui [2019] no. 13, diameter), employers can indicate the name of receiving company, the individual’s name and id number, item, payment amount and other relevant information of payment vouchers and accounting voucher for legal deduction.If the payment exceeds the above amount, it is suggested that natural persons be required to issue invoices for the tax authorities.As for the “service consideration cost paid to the third party company” mentioned in the notice of Smooth Office, the VAT invoice shall be obtained as the proof of deduction.Therefore, if the successful operation of 6 Sun companies can not replace or replace the legitimate deduction vouchers, they will face the administrative responsibility of tax collection and late payment by the competent tax authorities.Although smooth office said that the competent tax authorities did not deny the rationality and authenticity of the cost of 6 sun companies, but how the tax authorities ultimately determine, can not rule out the risk of being identified as tax evasion.Risk point 2: Illegal business operation and suspected false opening of returned funds In practice, although the employment business is real, the return of funds is caused by non-standard business and financial operation, which is easy to cause false opening of legal risks.The author gives an example: D Company is a conference company, providing services such as hosting, photography and field affairs for customers to carry out meetings, and issuing special VAT invoices to customers.As a matter of fact, they seek part-time hosts, photographers, welcome guests, and field staff from the society and universities, and pay cash daily.As the above-mentioned personnel were unwilling to issue invoices for D Company, D Company obtained a large number of special VAT invoices through a flexible employment platform in Shanghai.Its operation mode is to take the employees of the company as flexible professionals, upload their identity information to the flexible employment platform, and transfer it to the personal bank card of the financial personnel of D company after they obtain the remuneration, and then use it to withdraw cash and pay the remuneration to the host and photographer.In 2021, Shanghai tax police inspected all kinds of local human resource companies, flexible employment platforms and finance and tax service companies, and found clues of fund return of D Company. The public security organ then filed a case and investigated D Company on suspicion of falsely issuing special VAT invoices. The actual controller and financial director of D Company were detained.The violations of flexible employment in the above cases include: 1. Individuals do not know about flexible employment;2. Use the company’s private card to accept the remuneration paid by the platform.The two violations led to the determination of the law enforcement agency: 1. The flexible employment mode is not established;2, the return of funds, increase the suspicion of no real employment.As a result, the actual controller and financial director of COMPANY D face false criminal liability.Risk Point 3:Platform to collect tax with wrong items and tax rates, suspected of tax evasion in September 2021, Meituan asked the rider registration is individual and industrial and commercial door of news public opinion, then its official release the Meituan reiterated that “it is forbidden to induction and forced the rider registered as individual industrial and commercial households” instructions “, clearly put forward the “forbidden induced and forced laborers registered as individual businesses to avoid accepting responsibility”,Standardize the distribution cooperative commercial bank of Industrial and Commercial Bank.In fact, registering freelancers as self-employed and making their remuneration subject to “production and business income” would reduce the burden of individual income tax on freelancers to some extent.However, in practice, there is controversy over whether the remuneration paid by the platform for flexible professionals is “income from production and operation” or “income from labor remuneration”.A county tax authority in Henan province recently inspected a flexible employment platform and found it was wrong to use “income from production and operation” to collect individual income tax for freelancers instead of “income from labor remuneration”.The tax authorities then levy tax on individuals who issue invoices on behalf of the platform, and levy a penalty of 5 ‰ of the individual less tax on the platform.This phenomenon exposed the flexible employment platform in collect agency activities, there is still a grey area, “the production and operation income” and “labor remuneration income” definition is not clear, the flexible employment platform for the understanding of “economic substance” is inaccurate and lead to wrong applicable taxable items, tax rates, leading to more indications, less tax.Second, “online matchmaking” transformation, “employment tax planning”, such flexible employment platform risks can not be ignored the development of digital economy and the emergence of a large number of gig jobs, breaking the time and space constraints of the labor market.Especially during the COVID-19 pandemic, workers trapped in home quarantine can find, accept and work online through labor supply and demand.Labor enterprises can also release work tasks online through labor supply and demand, so as to realize the real-time and accurate matching of labor supply and demand.It can be said that the early flexible employment platform is an Online matching platform for labor supply & Demand.But as the epidemic control and the domestic economic recovery, flexible employment also produces change, no longer limited to “online” cross form of flexible employment platform 1.0, but to “use tax planning” flexible employment platform 2.0 morphology change, it is based on the real labor for the employers to provide comprehensive, integrated financial solutions.The core of the scheme is to change the identity of the subject based on the consent of the freelancer, and to reduce the tax burden for the freelancer and reduce the cost for the employing unit by means of local policies such as ratified collection and financial return.However, the recent thunder of some flexible employment finance and taxation platform also reminds us of the legal risk of “improper transformation of employment form” suspected of false opening and tax evasion.As an example, E Platform is a well-known Internet knowledge sharing platform in China. In 2020, it cooperated with dong Professor of a university and invited him to record a series of courses of a Dream of Red Mansions.Platform E and Professor Dong agreed that the calculation method of lecture remuneration is: fixed remuneration + sales commission.However, Professor Dong has a headache because of the high commission from course sales, which makes him face a high personal income tax burden.In order to reduce the tax burden, and get legal deduction vouchers, E platform, professor dong consultation by Beijing W tax on tax planning, the plan is that W the fiscal and taxation company in particular for professor dong park set up individual and industrial and commercial door, E platform and individual and industrial and commercial door service contract relationship, contract of consideration is the professor dong course sales commissions.Individual businesses issue VAT invoices to E platform, and enjoy the policy of verification and collection of individual income tax in the park, thus withdrawing funds for Professor Dong at a low cost.In 2021, Beijing W Finance and Tax Company was investigated by the public security organ on suspicion of false opening, and its actual controller, shareholder, head of business, financial director and other five people have been detained.However, the transformation of e-platform’s transaction pattern from “individuals providing services to enterprises” to “individuals providing services to enterprises” is also questioned by the tax authorities, who preliminarily concluded that individuals were involved in tax evasion and e-platform made false invoices.Whether the transformation of trading patterns has legitimacy causes concern in the industry.We believe that the tax avoidance scheme of transforming the transaction form after the event is suspected of false opening and tax evasion, so flexible employment platforms and employment enterprises should be on guard.However, everything cannot be done at the same time. If the service mode is reformed in advance, the identity of the transaction subject of lecturers and other freelancers as well as their basic legal relationship with enterprises are changed, and then the nature of their income is changed, we believe that the tax law should be recognized.In 2021, the Opinions of the Office of the CPC Central Committee and the Office of The State Council on Further Deepening the Reform of Tax Collection and Administration clearly proposed the transformation from tax control by votes to tax administration by “numbers”. At present, tax authorities around the country have gradually realized the transformation of tax big data.More and more local tax authorities have established enterprise risk identification systems of flexible employment platforms by using the national legal person database, national natural person database and other resources of the State Administration of Taxation to identify the risks of flexible employment platforms in a “targeted” manner.For example, jiangxi Taxation Bureau of the State Administration of Taxation made full use of the above database resources of the General Administration of Taxation, and relying on the Jiangxi Taxation big data intelligent service platform, constructed three innovative business application scenarios, namely, inter-regional risk alert for taxpayers, enterprise risk identification of flexible employment platform, and tax-related early warning for construction labor industry.At the same time, the fourth phase of the Golden Tax is coming soon, and the channels for information sharing and information verification have been opened up, realizing the transformation from “Internet access” to “cloud access”, and the tax authorities’ risk identification ability has been further strengthened.Flexible employment, an emerging thing, has value propositions such as economic value, efficiency value, knowledge value, social value and compliance value. Among them, compliance value is the most basic embodiment of value. No matter individuals, employers or platforms leave compliance, no value can be realized.Therefore, we suggest that individuals, employers and flexible employment platforms pay attention to the following points: 1. Whether the overall plan is compliant and whether the agreement is standardized;2. Ensure the authenticity of employment business, keep complete business data, and achieve evidence;3. Whether the platform has corresponding qualifications for entrustment and collection;4. Whether the payment path of funds is clear and whether there is suspicion of backflow;5. Whether the platform provides invoices in compliance and performs withholding and payment obligations or tax payment obligations according to law.