Talking about the Causes, Forms and Tax Treatment of Off-balance-sheet Assets

Talking about the Causes, Forms and Tax Treatment of Off-balance-sheet Assets

In order to survive and develop, an enterprise must adapt to the needs of market competition. His reproduction process should be a process of continuous development and growth. However, in the real work, we found that while the scale of the individual enterprises continues to expand and the economic benefits continue to increase, the external statements are long-term losses or meager profits. Through inspections, we found that the actual assets of these enterprises are seriously inconsistent with the book assets, that is, the formation of so-called off-balance-sheet assets. It is these off-balance-sheet assets that make it possible for enterprises to evade taxes. Here are some thoughts on the causes, forms and tax treatment of off-balance-sheet assets.

I. The cause of the assets outside the account

The formation of corporate off-balance-sheet assets can be said to be caused by various reasons, such as the false capital injection in order to avoid the registered capital, the concealment of paid-in capital, and the inaccurate measurement of receiving and dispatching goods. However, the common cause of the formation of off-balance-sheet assets is due to tax evasion.

The first is the imaginary expenditure. The imaginary expenditure directly leads to an increase in costs and expenses, a decrease in the amount of taxable income, and the evasion of income tax. At the same time, if it accepts the false special value-added tax invoice, it can increase the input tax amount and reduce the value-added tax.

The second is to conceal taxable income. Enterprises use the non-ticket income part to make income non-accounting or less accounting, in order to achieve the purpose of evading VAT and income tax.

Third, accepting cash donations is not accounted for, in order to evade income tax. Under the conditions of a market economy, if enterprises want to survive and develop, they must maintain and expand reproduction. Then, because the funds that are spent or concealed income must be invested in reproduction, it is obvious that these funds without sources will form. Off-balance sheet assets.

Second, the form of performance of off-balance-sheet assets

The off-balance-sheet assets of enterprises that are smuggled by tax evasion are initially monetary funds. When they are put into re-production, they will exist in various production and circulation links, showing different forms of capital. 1. Fixed assets outside the account. More often expressed as new fixed assets such as equipment, plant and land are not reflected in the accounts. 2. Inventory surplus. Including the finished goods, in-products, raw materials and other goods, the actual quantity is greater than the book quantity at the actual inventory. 3. False accounts payable. The main performance is that the “accounts payable” on the books of the enterprise is larger than the “accounts payable” of the actual corresponding customers, but in fact, the partial and full payment of the off-balance funds is actually used, because the enterprise does not have enough book funds when paying the debts according to the agreed time limit. The balance is used for payment. In another case, the most common one is “other payables”. In order to prevent the risk caused by false payables, the company adopts the virtual name or the shareholder and the operator as the payable counterparty, and according to the cash outside the account. The situation turned into re-entry of cash flow into the company's account. 4. Conceal the account. The extracurrency monetary funds are deposited in bank accounts that are not reported to the tax authorities or in personal savings accounts. 5, disk loss. Disc loss is a special form of existence of off-balance-sheet assets. For example, after the sale of finished products, no income is calculated. On the one hand, the finished product is in deficit, and on the other hand, it is the concealment of income.

The existence of off-balance-sheet assets is cyclical. Generally speaking, when the company's off-balance-sheet assets are sufficient, the actual business scale is far from the account response. At this time, the enterprise may adopt other legal forms such as re-injection of capital to convert the off-balance-sheet assets into account assets, so the account The existence of foreign assets has a certain time limit. At the same time, if the enterprise repeats the previous tax evasion, new off-balance-sheet assets will appear. However, it is impossible for any enterprise to timely dispose of the off-balance sheet assets for transfer to the in-book assets, thereby generating periodicity of the off-balance-sheet assets.

Third, the relationship between off-balance-sheet assets and taxable fees

The proportion of off-balance-sheet assets formed by different tax evasion methods is different between the amount of assets outside the company and the tax evasion. The non-accounting assets formed by the enterprises using the false expenditures mainly affect the enterprise income tax. The income tax rate is 33%, and the ratio of the assets outside the account to the tax evasion is 1:0.33. When adopting the VAT special invoice, the invoice for invoice, the purchase of waste materials, the purchase of agricultural and sideline products, etc., the deductible VAT output tax will also affect the turnover tax, and the proportion that affects the value-added tax is its deductible tax. proportion.

If the enterprise adopts the method of concealing income to evade taxes, then the income tax will affect the turnover tax. According to the VAT rate of 17%, the corporate income tax rate is 33%, the urban construction tax rate is 7%, the education fee is 3%, the average sales profit rate is 10%, and personal income tax is neglected.

1. Simply conceal the income type. That is, all expenses are accounted for, but only part of the income is concealed.

10,000 yuan of off-balance-sheet assets affect the turnover tax of 10,000 ÷ 1.17X17% = 1452.99 yuan;

Urban construction tax 1452.99X7% = 101.7l yuan;

Surcharge fee 1452.99X3% = 43.59 yuan;

Corporate income tax X33% = 2772.56 yuan.

The total tax and fee is 43740.85 yuan.

That is to say, the ratio of the amount of assets outside the account to the tax evasion is 1:0.437.

2. Both purchase and sales are concealed and reduced in size. In the case of this type of tax evasion, the amount of tax evasion cannot be directly calculated on the basis of the off-balance funds, and the sales must be calculated based on the average sales profit rate. The off-balance-sheet assets at this time are composed of the profits of concealed income and the value-added tax stolen. The sum of the amount of assets outside the account divided by the gross profit margin and the VAT rate is equal to the tax-free sales.

10,000 yuan of off-balance-sheet assets affecting value-added tax of 10,000 yuan ÷ X17% = 6296.29 yuan;

Urban construction tax 6296.29X7% = 440.74 yuan;

Education surcharges 6296.29X3% = 188.88 yuan;

Corporate income tax X33%=10".50 yuan;

A total of 497.41 yuan is affected by taxes and fees.

That is, the ratio of the amount of assets outside the account to the tax evasion is 1:0.79.

4. Misunderstandings in the tax treatment of off-balance-sheet assets

In daily tax audits, there are often two tendencies for off-book assets. One is to focus on the review of book logic, to ignore the verification of the accounts, or to treat the surplus goods and to pursue them further; the other is for finished products or The amount of loss of inventory goods is directly treated as tax evasion.

In fact, there are deviations between the two approaches. First, the extra-book assets are only the phenomenon of the form of funds caused by tax evasion. It is not the process of tax evasion. There are still many other reasons for the formation of extra-currency funds. Therefore, in modern society, there is no presumption of innocence. Under the guidance of the principle, the off-balance sheet assets cannot be used as a direct basis for finalizing the case. Second, the disk loss or the disk profit is a problem in two aspects, which are caused by the inconsistency of the accounts. Once the assets are discovered, the reasons must be further ascertained. The third is based on the short-term basis of the finished product, which is easy to produce inference errors. For example, if a company produces 100 pieces of products in a month, 80 pieces of books are put into storage, 90 pieces are actually sold, and the accounting income is 60 pieces. Then, the actual inventory at the end of the month is 10, the book bank is 20, and the amount of concealed income is 30. Loss 10 pieces. Therefore, it is obviously wrong to use the number of direct losses to be 10 as the amount of concealed income. If the booked product in the previous month is 60 in the previous example, then there will be 10 pieces at the end of the month, and 30 pieces of sales will still be concealed.

V. Tax treatment of off-balance-sheet assets

There are two main forms for the processing of off-balance-sheet assets. One is the verification of the collection, and the other is evidenced by other evidence, based on the amount of assets outside the account.

1. The accounts are confusing, and the taxable amount cannot be accurately calculated, and the taxable amount is verified according to the regulations.

If the enterprise accounts are seriously inconsistent with the existing assets, and the company cannot provide reasonable reasons, such as statistical errors, estimation errors, etc., it can be difficult to check the accounts of the company. Handle in accordance with the provisions of Article 35, paragraph 4, of the Tax Collection Law and the Regulations. This situation generally applies to discrepancies in inventory, does not involve large other off-balance-sheet assets and does not provide evidence of the formation of off-balance-sheet assets. In addition, this treatment method only verifies the taxation of the inspection period, is not retroactive, and is relatively lighter than other tax treatments.

2. Combine with other evidence to form a chain of evidence, which is handled according to tax evasion.

The existence of an off-book asset in an enterprise does not directly prove that the enterprise has tax evasion. It can only be used as an indirect evidence. According to the principle of presumption of innocence, in the absence of other evidence, the indirect evidence cannot be finalized. Focusing on the collection of other evidence is to prove through other evidence that the off-balance sheet assets are formed by concealing income or imaginary expenditures, and form a complete evidence chain as the basis for finalization. These relevant evidences generally indicate that the source of funds for off-balance-sheet assets is the enterprise's small treasury and off-book income, or that it conceals the actual production output, or that the book price is not in line with the actual selling price and that the taxpayer acknowledges the funds of the off-balance-sheet assets in the inquiry transcript. Concealing income and the act of obtaining fictitious expenditures, such evidence can be in the form of conclusions, on-site records, inquiries, transcripts, documentary evidence, and other audio and video materials.

In short, the reasons for the formation of off-balance-sheet assets are complex and diverse, and the time span is large. The use of off-balance-sheet assets and related evidence as a final case is generally based on a large amount of money, and has a certain traceability in processing. To this end, in the specific application, we must fully listen to the taxpayer's defense and statements, and must treat the objections carefully, that is, to protect the state's taxes from losses, and to protect the legitimate rights and interests of taxpayers from infringement.