1. Use related party transactions to avoid tax.
There are various forms of related party transactions, mainly traditional purchase and sale business, including transfer of intangible assets, provision of labor services, financing, asset leasing and other related party transactions. Transfer the profits of profit-making enterprises to loss-making enterprises or transfer the profits of normal tax-paying enterprises to affiliated enterprises enjoying tax preferences through related party transactions, so as to balance the tax burden of the group and reduce the overall tax burden of the group. The taxes involved include enterprise income tax, value-added tax, business tax or consumption tax.
The main ways for affiliated enterprises to transfer profits are: first, the transfer pricing of tangible property, and the transfer of raw materials and finished products by affiliated enterprises is based on low output of AG, or low input and high output; The second is the transfer pricing of intangible assets, and the transfer of intangible assets between affiliated enterprises is not charged according to the market price of such transactions; Third, the transfer pricing of labor costs, affiliated enterprises often use one party to transfer virtual labor costs to another party's account; Fourth, property leasing's transfer pricing, the enterprise and its related parties signed a venue lease contract below or above the market; Fifth, transfer pricing in finance. The loan interest rate provided by affiliated enterprises is higher or lower than the market interest rate.
Transfer pricing has great flexibility and concealment, especially in the transfer of intangible assets such as patented technology and trademark use rights.
2. Set up another affiliated subsidiary to falsely issue special invoices to deduct VAT tax avoidance.
One form is to form a "front shop and back factory" affiliated enterprise. One side is a waste collection enterprise, the other side is a waste utilization enterprise, or one side is an agricultural product primary processing enterprise, and the other side is an agricultural product deep processing enterprise or retail enterprise. Scrap purchasing enterprises directly or indirectly funded the establishment of scrap purchasing enterprises, agricultural products deep processing enterprises or retail enterprises to set up independent accounting primary processing enterprises of agricultural products, falsely issued purchase invoices with input tax deduction, and at the same time falsely issued VAT sales invoices to scrap purchasing enterprises, agricultural products deep processing enterprises or retail enterprises, thus achieving the purpose of falsely issuing special VAT invoices for the second time to avoid VAT and income tax.
Another form is to set up general taxpayer and small-scale taxpayer enterprises at the same time, with the same purchase channels and the same goods produced or sold. When two enterprises purchase goods at the same time, they all use special VAT invoices as the input deduction of general taxpayer enterprises, thus evading VAT.
Some of the legal representatives of these affiliated enterprises are the same person and some are family members.