Analysis on the Loss of Taxation of Financial Enterprises' Debt Assets

Analysis on the Loss of Taxation of Financial Enterprises' Debt Assets

In recent years, the business volume of financial enterprise mortgage loans has been increasing. When collecting bad assets, it is very common to pay for debts. The tax-related problem of dealing with debt-to-debt assets is also complicated. Due to the inaccuracy or low importance of the relevant policies, it is very easy for the tax losses of the property-for-debt links to be seriously depleted. It should be highly valued by the tax authorities at all levels and be effectively resolved.

First, the specific performance of tax losses on debt assets

Financial enterprises recover their debt-receiving assets, do not do the corresponding accounting treatment, but do the debt-receiving assets for off-balance-sheet operations. When a financial enterprise recovers the debt-to-debt assets, it shall offset the principal and interest receivable of the funds and record the liquidation proceeds into the current operating profit. However, we found in the inspection that many enterprises are not processing the interest recovered in a timely manner, and failing to pay the business tax on the one hand; on the other hand, they do not carry forward the operating costs at fair prices, or even long-term non-performing loans or The sluggish loan was posted, resulting in inaccurate business results and the evasion of corporate income tax.

The recovered debt homes are not subject to property tax. According to the relevant provisions of the "Provisional Regulations on Real Estate Tax of the People's Republic of China", for debt-receiving houses recovered by financial enterprises, including residential houses and production office buildings, in addition to the fact that the property is idle or has difficulty in paying taxes, it may apply to the competent local tax authority where the property is located. Tax relief. In addition to the above two cases, the value of the debt-to-debt should be used as the original value of the property, and the property tax should be paid according to the self-owned property. However, the accounting treatment of most financial enterprises to recover debt assets is included in the “other assets” subject, not in the “fixed assets” account, resulting in the evasion of property taxes.

The debt-receiving houses recovered by financial enterprises are used for their own purposes. They are posted in the “Other Assets” subject for a long time, and are not transferred to the “fixed assets” subject in time, and no property tax is paid. At present, most of the debt-receiving houses recovered by financial enterprises are based on the written debt-to-debt agreement signed by the borrowers and borrowers, and the procedures for confirming the transfer of property rights cannot be processed in time or are not handled for any reason. When the financial enterprise will take back the houses as business premises. At the time, it is often the case that the property rights are not determined as the long-term “other assets”, and the fixed assets are not added in time, and the property tax is not declared. At the same time, most of the renovation and renovation costs of this part of the property are recorded as “deferred expenses” or “deferred assets”, which also results in less payment of property tax. In addition, because the amortization period is shorter than the depreciation period, it also affects the current profit and loss of financial enterprises and pays less corporate income tax.

The debt assets recovered by the financial enterprises are rented out, and the rents recovered are offset against the principal and interest of the loans, and the lease business tax and the property rental property tax are not paid. Because financial enterprises use computer accounting methods, and the financial accounts of financial enterprises are quite different from the traditional manual accounts that our tax personnel are familiar with, and the use of microcomputers to check accounts is an urgent need for tax authorities to improve. Tax auditing is difficult, and the tax evasion behavior is not effective.

Re-sale of repossessed assets recovered by financial enterprises, transfer of property rights, and not to pay sales of real estate business tax or transfer of intangible assets business tax. According to the "Notice of the Ministry of Finance and the State Administration of Taxation on Certain Policy Issues Concerning Business Taxes", Article 20 of Caishuizi [2003] stipulates: "If units and individuals sell or transfer the real estate or land use rights of the debt-to-debt income, the total income shall be After deducting the debt, the balance of the real estate or land use right after the price is the turnover, declare the payment of the sales real estate business tax or the transfer of the intangible assets business tax." However, due to the failure of financial institutions to use the invoices of the tax authorities when handling debt-reducing assets, the tax revenue of this link is lost. At present, financial companies deal with debt-reducing assets mainly by entrusting professional institutions to auction and financial enterprises to sell their own. After the former bid, the auction institution will issue auction special notes, and the financial enterprise does not need to provide special invoices and pay taxes. In the latter case, the transfer of housing and land property rights is confirmed, and the real estate and land administration departments do not need the formal invoices of the tax authorities, and the transfer of property rights can be handled only by the transfer agreement signed by both parties. Because there is room for not having a formal invoice, the “invoicing tax” effect of the invoice cannot be effectively utilized, which has caused the financial enterprise to handle the tax evasion of the property-for-debt assets.

The land occupied by the debt-receiving assets recovered by the financial enterprise shall not be declared to pay the land use tax before it is disposed of. As mentioned above, the reason for not paying the property tax is that the financial enterprise does not apply for the land use tax of the debt-collected assets that are not covered by the property rights procedures of “other assets”. According to the "Provisional Regulations of the People's Republic of China on Urban Land Use Tax" and the "Notice of the State Administration of Taxation on Printing and Distributing the Interpretation and Interim Provisions on Certain Specific Issues Concerning Land Use Tax", the debt-collected land or debt-receiving houses recovered by financial enterprises If the occupied land has not changed its use before disposal and meets the policy reduction or exemption conditions, it may apply for tax reduction and exemption. After being examined and approved by the competent local tax authority, it shall be submitted to the provincial local tax authorities for approval before the reduction or exemption; For tax purposes, the land use tax shall be declared and paid.

The debt-for-asset assets agreement signed by both parties is not subject to stamp duty. According to the "Provisional Regulations on Stamp Duty of the People's Republic of China" and [1998] National Taxation Circular No. 30, "As the borrower is unable to repay the loan and transfer the debt-to-debt assets to the lender, the book should be transferred to the property rights of the two parties. The transfer of property rights is based on the 'tax decals'. However, due to the lack of effective monitoring methods by the tax authorities and poor taxpayer awareness, the borrowers and lenders rarely pay stamp duty when signing the debt agreement.

Second, some suggestions on strengthening the tax management of financial assets in debt-for-debt assets

Improve tax returns for financial enterprises. It is recommended to add a “Detailed List of Other Assets Increase and Decrease” to the tax information submitted by financial enterprises to the tax authorities. The table can be set to reflect in detail the time when the assets are repaid, the amount of the principal and interest of the loan, the real estate or land occupied by the land, the sale and lease of the foreign land, and the local taxes and other taxes, which will help strengthen the grassroots management and management list. Management of taxable assets.

Improve the “local three tax” tax source census system for financial enterprises. At present, the “Local Three Taxation Sources Census Form” used by the tax administration is a form that has been used for many years. It is consistent with the industry, the format is consistent, and the statistical content is relatively simple. It cannot meet the accuracy and timely reflection of the local three tax sources. Status requirements. It is suggested that the “Local Three Taxes Sources Census Form” should be set separately for different industries. Taking financial enterprises as an example, the original value and area of ​​“other assets” and “fixed assets”, changes in increase and decrease, property tax payable and land use tax should be separately counted in the census form.

Establish and improve the source control network. In view of the loophole management loopholes exposed in the process of financial assets repossessing assets, the local auction agency, real estate management department and land management department should establish a commission and collection mechanism as soon as possible. For the taxable real estate and land auctioned, the auctioneer shall entrust the auction agency to collect the sales tax on the real estate and the intangible assets. In the transfer of property rights, it is emphasized that the “special invoice for the sale of real estate” and the “special invoice for the transfer of intangible assets” must be issued by the local tax authorities. Can go through the formalities of confirmation.

Improve the level of computer auditing in the tax audit department, and reverse the passive situation that cannot be used to check the accounting software of the unit under investigation as soon as possible. By improving the quality of tax inspections, discovering and correcting tax loopholes in financial enterprises, and achieving the purpose of checking and promoting management. According to Article 20 of the Law of the People's Republic of China on Tax Collection and Administration: “The financial, accounting system or financial, accounting treatment methods and accounting software of taxpayers engaged in production and operation shall be submitted to the tax authorities for filing.” Article 24, paragraph 2 stipulates: "If a taxpayer uses computer to keep accounts, it shall submit the accounting software, instruction manual and relevant materials of the accounting computerization system to the competent tax authority for record before use." The taxpayer shall submit the accounting software filing system to the competent tax authority. Secondly, the tax auditors and management personnel shall be organized to study and train the taxpayer's accounting software, and the ability to use the accounting software for auditing and taxation counseling shall be greatly improved.