With the implement of Golden Tax-III project, petrochemical enterprises in so many provinces have been investigated by tax authorities, some even been spied by polices for changing invoice name. It seems that CIN has become a common problem in petrochemical enterprises. Because the CIN involves huge number of sales volume and taxes, petrochemical enterprises are facing huge tax risks.
CIN is gradually under the sun
The so called CIN is changing the goods name on the invoice. The petrochemical enterprises usually will CIN when they sale the crude oil, to change the goods name from crude oil to product oil on the invoice for tax evasion.
Those who CIN risk the most
In the CIN trade chain, not all the enterprises implement CIN, but they can all get illegal interests, and they basely face the potential tax risks of tax evasion and falsely making out specialized VAT receipt. However, who implement CIN are facing the most highly tax risks.
Since CIN has become a common problem in petrochemical enterprises, how to deal with it has an important influence for combating tax crime and redeem the tax loss. To solve this problem, need three-pronged approach and address both the symptoms and root cause.
On one hand, establish a cross regional jurisdiction mechanism. It is suggested that he SAT of nation and Ministry of public security set up a joint case group to coordinate the handing of such cases.
On the other hand, we will constantly improve the system of collecting and managing the product oil consumption tax. The consumption tax should be changed to the central and local share tax, and the taxation is changed to the retail link, and the consumption tax rate should be reduced properly, and a scientific and effective deduction system needs to be established.
At the same time, the petrochemical enterprises should strengthen the awareness of risk prevention.