In an interview with China Taxation News, the lawyer of Huashui expressed his opinions on tax risks in the pharmaceutical industry
Since May 23, the Ministry of finance has deployed the special inspection of accounting information of 77 pharmaceutical enterprises, the tax problem of pharmaceutical industry became the focus of public attention. According to the document, local regulatory bureaus and financial departments (bureaus) should submit the inspection materials of pharmaceutical enterprises to the Ministry of finance before August 30. Sales expenses, cost accounting, income authenticity and other issues have become the focus of recent inspection work in the pharmaceutical industry. Recently, lawyer Tianyong Liu was interviewed by China Taxation News and gave his professional opinions on the tax risks hidden in the "new trend" of reducing stocks and high financial costs in the pharmaceutical industry.
According to Tianyong Liu, if the shareholder is an enterprise, the investment income and enterprise income tax should be calculated when the restricted shares of listed companies after the lifting of the ban are reduced. If the shareholder is an individual, it is necessary to distinguish between the restricted shares subject to individual income tax and the reduced share transfer enjoying the tax-free treatment of individual income tax. Tianyong Liu reminded that if the accounting treatment of financial expenses is not accurate, enterprises are likely to face the risk of tax adjustment. Tianyong Liu said that almost every business in the daily operation of listed pharmaceutical enterprises involves tax collection, and these enterprises must pay attention to the compliance of tax treatment.