Is it tax evasion if property fees are not invoiced?

Failure to invoice property is tax evasion.

In practice, many property companies do not issue formal invoices to owners in order to pay less taxes or save trouble. It is suggested that owners should actively ask for invoices from property management companies when paying property fees. If the property management company cannot issue a formal invoice, the owner can report it to the local tax department. Failure to invoice property is tax evasion.

escape a tax

The crime of tax evasion means that taxpayers and withholding agents deliberately violate tax laws and regulations, forge, alter, conceal or destroy account books and vouchers without authorization, overstay expenses or omit income in account books, and refuse to declare or make false tax returns after being notified by the tax authorities, which is a serious act. According to the Seventh Amendment to the Criminal Law, this crime has been replaced by the crime of tax evasion.

Reasons for tax evasion

Tax evasion is caused by taxpayers' unfamiliarity with the tax law and financial system, or carelessness in their work. Such as misuse of tax rate, omission of taxable items, underestimation of taxable quantity, miscalculation of sales and operating profit, etc. The nature of tax evasion is different, and the key to judge whether tax evasion is intentional or not is different, so the treatment is also different. The tax law stipulates that for tax evaders, the tax authorities shall order them to pay back the tax they have missed within a time limit. If it fails to pay within the time limit, a certain amount of overdue fine will be charged daily from the date of tax evasion. According to the "Decision on Rectifying Tax Order and Strengthening Tax Administration", temporary operators who evade taxes may detain some of their goods in accordance with regulations and pay them within a time limit; If it fails to pay within the time limit, with the approval of the tax director at or above the county (city), the detained goods may be changed to offset the payable taxes, late fees and fines. To fundamentally put an end to tax evasion, in addition to punishing tax evaders economically, the most important thing is to educate tax evaders about tax law and financial knowledge, so that tax evaders can understand the tax law and improve the financial system.

Legal basis:

Article 2 of the Enterprise Income Tax Law of People's Republic of China (PRC) (revised 20 18) stipulates:

Enterprises are divided into resident enterprises and non-resident enterprises.

Resident enterprises mentioned in this Law refer to enterprises established in China according to law, or enterprises established in accordance with the laws of foreign countries (regions) but with actual management institutions in China.

The term "non-resident enterprise" as mentioned in this Law refers to an enterprise established in accordance with the laws of a foreign country (region). Its actual management institution is not in China, but it has institutions and places in China, or it has no institutions and places in China, but it has income from China.

Article 3 of the Enterprise Income Tax Law of People's Republic of China (PRC) (revised 20 18) stipulates:

A resident enterprise shall pay enterprise income tax on its income from sources inside and outside China.

Where a non-resident enterprise establishes an institution or place in China, it shall pay enterprise income tax on the income obtained by its institution or place from China and the income generated outside China but actually related to its institution or place.

If a non-resident enterprise has no institution or place in China, or if it has an institution or place, but its income has no actual connection with its institution or place, it shall pay enterprise income tax on its income originating in China.