What are the more serious risks that may exist in issuing invoices to collection points with personal ID cards? Let's take a look today

First, there are risks

(1) Risk of making out false invoices

The subject of the invoice is likely to just randomly find a few ID cards to the collection point to issue an invoice, the ID card points to the subject of the invoice does not actually sell goods, services and services to the subject of the invoice. At present, this kind of situation is common to some extent. If it is verified by the competent tax authorities, it will be identified as a false invoice.

False invoice has the following characteristics: first, invoicing subject has not occurred taxable behavior; Second, there is no capital flow or the payer pays first and then returns the capital (flow to the drawees or their affiliates); Third, invoicing items are usually fictitious items such as consulting fees, promotion fees, management fees and office fees. Fourth, the evidence chain is incomplete, can not provide the evidence of the purchase and sale of goods and the basis for the occurrence of labor and services.

(2) Risks of withholding individual income tax

If an individual issues an invoice at the collection point, and if it is for providing services, then under the premise of not having an employment relationship, individual income tax shall be paid according to the income from service remuneration (which is comprehensive income). In accordance with the provisions of the Individual Income Tax Law, the obligation of withholding individual income tax shall be fulfilled when payment of remuneration for service to individuals.

If an individual issues an invoice at the collection point and it belongs to the sale of commodities, individual income tax shall be paid according to the income from the transfer of property. When income from the transfer of property is paid to individuals, the statutory obligation of withholding shall also be performed.

The Law on the Administration of Tax Collection stipulates: "If the withholding agent should withhold the tax but fails to collect the tax, or fails to collect the tax due, the tax authorities shall recover the tax from the taxpayer and impose on the withholding agent a fine of not less than 50 percent but not more than three times the amount of the tax not withheld or receivable." Where taxes can be recovered, they may be punished0.5Times fine, tax can not be recovered, may be imposed1.5Double the fine.

It needs to be noted that some collection points in the name of "temporary operation" for individuals to issue invoices, in the invoice according to the income from production and operation of individual income tax. Some people think that in this case, the drawee (payer) need not withhold personal income tax. The author thinks this view is incorrect. The collection of individual income tax items is obviously not determined by the collection point, but should be determined according to the nature of the behavior and the provisions of the individual income tax policy. If all taxable activities of individuals such as providing labor services and transferring property can be taxed according to income from production and operation (temporary operation), then there is no need for the existence of tax items such as income from remuneration for labor services and income from transfer of property. If an individual has not obtained a self-employed business license, his services and transfer of property should not be taxed as income from production and business under most circumstances (except where the individual tax law expressly provides). Therefore, the drawee (payer) cannot evade the obligation of withholding personal income tax on the grounds that the drawee belongs to "temporary operation".

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