How to find out "off-the-books" and "two sets of accounts" in tax inspection?

This question and answer belongs to the model of tax inspection!

Tax inspections are divided into two types: general inspections and tax audits.

The general inspection is usually carried out by the competent tax authorities (two or more people), and the general tax matters of the business entity will be checked at the door, such as general taxpayer application, business premises inspection, etc. After the tax reform has been deepened, it is now possible for the taxpayers to apply for the tax inspection. After the continuous deepening of the tax reform, it is expressly stipulated that the tax administrator shall not make tax inspection matters coincidentally, and frequently go to the door to enter the house!

The tax audit is a comprehensive tax inspection by a professional inspector of the tax inspector, the big data comparison of illegal tax-related matters or the taxpayers who have been reported and confirmed by the taxpayers in accordance with the law. In layman's terms, tax inspection is a process in which the inspection bureau has grasped some or all of the clues of taxpayers' violations of laws and regulations, and has come to the main body of the business to verify and conduct in-depth investigations! (An inspector staff oral)

Tax inspection has risen to the tax audit, the directionality has been quite clear. The main body of the business has off-the-books, two sets of accounts of the facts, know? There is no tax audit without clues!

The probability that the tax inspection department has been through the golden tax old three, the administrative department information interaction and other big data, as well as reporting and other ways of illegal facts and clues have been grasped.

The door-to-door audit consists of two parts: verification and investigation. Accounting for clues and reported matters, and checking the reality of ungraspable matters!

Finance and taxation have never been separated, the inspection bureau all day long to study the tax inspection matters, for the account outside the account, two sets of accounts how to operate more familiar with the relevant financial personnel than the enterprise! Focus on the business ledger data, logical relationships, bank water, inventory discrepancies, etc., will be able to verify the illegal behavior! "Off the books, two sets of accounts" for the tax audit without difficulty!

The tax bureau checks the accounts, mainly with the verification of the enterprise value-added tax and income tax related content. The most important thing is to pay the VAT, because the payment of VAT means the recognition of income, and the income is the only way to have a profit.

So what are the main records in the internal accounts? It is usually the income that is not invoiced, and the expenses that can not be done on the external accounts. The actual expenditures of the enterprise can not care about the tax office, but if there is not invoiced income, it is tax evasion.

Check the value-added tax, generally need to check these:

1, purchase and sales contracts, to confirm whether the two sides have the intention to cooperate. Some units of internal control is not strict, feel as if they do not need, but when the verification needs, and then provide the difficult, is not spread out two hands and say I have nothing?

2, the two sides of the inventory list, logistics documents. When the goods are out of the warehouse, how to transport, there is no confirmation of arrival, which is very important to prove that your business is the real existence of evidence. If the contract is not finished, the need for invoicing, must pay attention to, the invoice date can not be earlier than the date of shipment, early is false.

3, evidence of financial transactions. This need to go from their respective public accounts, to obtain the bank's bill of return.

4, inventory ledger. The main point is to see whether the books are consistent, and if they do not match, you can explain why. For example, the book data is large, the actual data is small, then again from your personal card found with the actual income level does not match the flow of funds, then it is possible to be recognized as the existence of non-billing income. This is tax evasion. Then go to check the personal accounts of the people concerned, if there is a large amount of money flow, then there must be off the books.

As for the income tax, mainly to see whether there can not be accounted for expenses into the account, but the general tax bureau will not check so carefully, if the income tax burden is too low, first of all, you will let you self-check to find out the reasons for the majority of the practice is to write a self-check report, to pay some taxes on the past.

Accounting has a very strict logic, it is very difficult to do false, even if you do false accounts, the actual situation will face.

How do tax audits detect "off-the-books" and "two sets of books"?

In reality, almost all private companies have two sets of accounts, the so-called "internal accounts", mainly to avoid taxes. The main purpose of setting up two sets of accounts may also be to transfer funds. Therefore, nine out of ten private enterprises are unable to withstand a professional and in-depth audit. In this regard, the competent tax officials are aware of the fact that they can not check, must not check, because a check, the end of the difficult to cook, the serious possibility of making the enterprise face bankruptcy. In addition, the local tax officials in charge of the enterprise always have a little bit of a relationship.

So, in reality, the enterprise's "off-the-books" and how was the tax department found? I put it rough statistics and summarized, roughly as follows:

First, most or mainly reported or reflected within the enterprise, including financial personnel, withdrawing minority shareholders and contradictory employees.

Second, there are a small number of tax officials to audit, tax officials from the walls of the corporate office or other inadvertent places found some information, such as customer lists, current sporadic records, and these customers and records in the company reported to the tax books are not recorded and documented.

Third, the tax file audit of the enterprise, tax officials in the process of interviewing the accounting staff, accounting staff can not answer and bluntly do the answer or talk out of turn. For example: tax officials asked: the boss recently bought a luxury car, and bought a new house, where the funds come from, is to the company borrowed? Finance and accounting staff answered: did not borrow.

But check the company's accounts in recent years and no dividends, it may be another source of funds - off-the-books income. (The car is the company's, the house is personal.)

In addition, professional tax inspectors, from the enterprise's production and operation capacity, a professional equipment production line capacity, the scale of investment, the size of the loan and other indicators can be easily deduced from the normal output of the enterprise, the actual output if the amount of output and the normal output of the difference is too large, and there is no reasonable grounds, there must be off-the-books income. Of course, there is no special reason, the tax inspector will not dig out the enterprise "off-the-books", unless the "tax-enterprise relationship" is too rigid.

So, how to avoid the risk of having an "off-the-books" business? I have a special study on this.

Some of the companies that have been in the market for a long time have been in the market for a long time.

Some of the financial and tax irregularities of the enterprise, there is "off the books", "two sets of accounts" of the situation. These enterprises are also worried about whether they will be detected by the tax audit. Below, we talk about how the tax audit found these cases.

1. Causes of tax audits

If a company is being audited, it can be for a variety of reasons. For example, it receives information pushed by the management department or risk department; it is assigned by the higher tax authority; it is randomly selected based on the type of enterprise, nature of the industry, size, tax burden rate, risk level, etc.; the upstream and downstream of the enterprise has a problem, which is involved in the inspection, and entrusted to the co-inspection; or the enterprise has been reported; or it is assigned by the higher tax authority; and so on, all kinds of situations are possible.

Now in the era of artificial intelligence, the tax authorities have big data, the Golden Three system, the reptile technology assistance, has not been in the past to rely on a large number of manual to complete the task.

(1) the application of crawler technology

Before there was an enterprise to advertise on the Internet, a certain business of the enterprise. Later, the tax authorities through the crawler technology, found that the business has never been tax returns, after investigation, the enterprise has the behavior of tax evasion, and finally the tax authorities require it to pay back taxes and penalties;

(2) the same industry enterprises relative to the comparison of

And the other enterprise, part of the income through the non-invoicing of the way to hide The tax authorities discovered the anomaly by comparing it with enterprises in the same industry. Because according to the process of this industry, is sure to produce 5% of the waste, the general sales of waste are declared through the non-invoicing income. And the enterprise declared all the invoiced income, so the tax authorities found the suspicion. Finally, the enterprise was penalized.

(3) The power of the electronic ledger

There is a business, because the customers are retailers and individuals, so many do not want invoices. So the boss had an idea, since these people do not want tickets, why not give tickets to other customers, but also can charge a little "service fee". Who knows, the gold three system a comparison, found that the business into the electronic components, sales are a variety of wind horse cloud cattle are not related, so immediately found a violation of the enterprise.

In addition, the tax authorities have a number of risk warning, if there is a problem with the enterprise itself, it is also easy to be found.

2. What the enterprise needs to do

For enterprises with two sets of accounts, the fundamental issue is definitely to solve the problem of two sets of accounts and carry out the two accounts in one. Of course, this thing is a systematic project, can not be rushed. For the enterprise's financial, usually still have to do a good job of self-checking and risk control, to see the enterprise's tax-related risk in the end how big, try to avoid being "mistaken".

For example, the information reported out of the financial staff to review their own first, do not appear more than one data source data inconsistency.

Furthermore, for the financial statements of the obvious problems, or should pay attention to, such as too large advance receipts, there is no timely declaration of income, to check.

Finally, for financial staff, high-risk matters resolutely can not be involved.

Overall, there are fiscal irregularities in the enterprise, or should be corrected in a timely manner, after all, now more and more developed big data, "two sets of accounts", "off-the-books" is relatively easy to be found.

The answer to this question is as follows:

1. The tax audit to find out the off-the-books, two sets of accounts have a variety of ways. First, the enterprise internal informed people reported the existence of off-the-books behavior; second, the external report of the existence of enterprises to conceal income, fictitious costs and expenses to evade state taxes; third, through the third-party information found that the enterprise tax evasion behavior, such as through the investigation and handling of foreign invoicing enterprises found that the enterprise evasion of state tax clues; fourth, the tax authorities of the daily inspection discovery. For example, in the daily inspection of the enterprise computer system found the existence of two sets of accounts or through the field site inspection found the existence of the enterprise to do two sets of accounts behavior.

2. The tax authorities can't guarantee that all the enterprises with two sets of accounts and off-the-books accounts will be found and investigated during the inspection process. Even if you don't find evidence of the existence of two sets of accounts to evade state taxes, the tax authorities will find the existence of tax-related risks through comprehensive analysis.

3. Not all enterprises do two sets of accounts are tax evasion. In practice, some companies may do two sets of accounts and one set of accounts is actually a running account, which makes it easier for the boss to understand the company's income and expenditure more easily. If not to evade the state tax for the purpose, this two sets of accounts is no risk.

4. Personally recommended that financial personnel do not participate in doing two sets of accounts, if you do a financial two sets of accounts to evade state taxes, this situation of financial evasion of state taxes have a direct responsibility, if the amount of tax evasion is huge, may be involved in pursuing the issue of criminal liability, be sure to keep a clear head. If you just do a set of accounts according to the requirements of the boss, the other whether there is a second set of accounts do not know, is not responsible.

Tax audit to find out the two sets of accounts in many ways, but the tax authorities to audit the enterprise is not to check whether there are two sets of accounts of the problem, but the audit of the enterprise's tax evasion and tax evasion. In addition, not all off-the-books or two sets of books are problematic.

In reality, many enterprises have two sets of accounts or outside accounts. Some enterprises are in order to more to financial institutions to apply for bank loans , and false increase in assets, operating income and profits, etc., and after the audit of the audit organization issued an audit report (here to say more, the audited unit spend money to hire accounting firms to issue audit reports, its authenticity and accuracy of how much water?)

There are also companies that hide their income in order to pay less tax, buy VAT input tax invoices to increase the input tax credit, misrepresent the costs and expenses, and misrepresent the assets and liabilities to achieve the purpose of tax evasion. This false accounting is not something that can be accomplished independently by the finance department, but requires multiple departments within the organization, as well as external supply chain customers to complete.

There are also listed companies that do not hesitate to fake accounts in order to circle the money.

Of course there are companies that have off-books and two sets of books, just for internal accounting and management, outside of normal accounting, according to the needs of the business development and the refinement of the accounting content of the enterprise, that is, the content of the operational or management accounting, more to meet the internal and operational management of the enterprise. This type of accounting system has nothing to do with false accounting.

In essence, the purpose of the tax audit is not to check the two sets of accounts or off-the-books accounts of the enterprises, but to form a deterrent to tax evasion and avoidance of tax enterprises, so what are the ways through which the tax authorities are auditing the tax evasion and avoidance of tax behaviors of the enterprises?

1. The powerful functions of Golden Tax Phase III ( and Golden Tax Phase IV, which will be implemented soon) are well known to taxpayers, for example, the sales, receipts, and VAT invoices issued by enterprises, as well as the abnormalities of the enterprises' inventories, which can all be captured through the Golden Tax System, and then further verified by the enterprises.

2. The actual tax burden rate of the enterprise is abnormal, such as the VAT tax burden rate is higher than the industry average, and the enterprise income tax burden rate is lower than the industry average. It should be said that the actual tax burden rate of the enterprise is too high or too low, it is a risk for the enterprise. Then the tax authorities of the enterprise sustained tax burden rate anomaly, it will audit the enterprise, and then find the enterprise tax evasion problem.

3. The tax authorities can find tax-related anomalies based on the financial reports provided by the enterprises. For example, the enterprise has been losing money for many years, but there is still cash flow not to close down; the enterprise's accounts receivable balance is particularly huge, and the actual operating income of the enterprise does not match; the enterprise's inventory balance is very large, accounting for a large proportion of the current operating income; the enterprise has been profitable for many years, but just do not share the dividends; the enterprise has only the output tax, but not the input tax, or only the input tax, but not the output tax abnormalities and so on. . Early warning occurs when a company's financial data is anomalous.

4, the tax authorities received a report , or VAT invoices, etc. will be involved in the enterprise in the tax issues; there are upstream and downstream customers there are tax evasion problems, and then check the situation of the associated enterprises is also very common.

In short, there are a lot of ways for tax authorities to audit enterprises for tax evasion. As a financial officer should avoid participating in the enterprise maliciously do two sets of accounts behavior, especially tax evasion, with the continuous progress of information technology, this space will be more and more small.

February 24, 2021

This is an interesting question, as the saying goes, "If you want people to know, unless you do not do", the enterprise set up "off-the-books", "two sets of accounts", 90% of the time, "two sets of accounts", "two sets of accounts", "two sets of accounts", "two sets of accounts", "two sets of accounts", "two sets of accounts".

I work in a tax firm, and the contact between the enterprise and the tax are relatively close, for the tax how to know the enterprise set up "two sets of accounts", "off the books" this problem, should be regarded as a right to speak, in response to this problem, I summarize the following Two reasons:

First, the internal reasons 1, the informant report

This reason is the most direct, but also the most accurate.

Previously, I had contact with a construction company, the accountant Wang left, other employees leave, the company is to pay the standard to the employees to leave the compensation. However, Wang in the work process offended the boss, in the departure of the company a penny of the severance pay are not paid, Wang felt very unfair, to find the boss to negotiate, a few negotiations, Wang not only did not get the compensation due, but also suffered the boss of some humiliation. Wang was furious, ran to the tax bureau to report the company tax evasion, due to Wang holds the first-hand information on the company's finances, the evidence is ironclad, and is the real name of the report, the tax must go to the inspection.

2, corporate finance is not standardized, data anomalies, caused by tax risk tips

Many companies in order to save personnel expenses, do not pay attention to financial work, that the accountant can keep an account on the line, so the recruitment of accountants, regardless of the level of business, as long as the salary is low.

Unbeknownst to them, the business level of the financial personnel, the tax risk to the enterprise is huge!

For example: I had contact with an enterprise, looking for a bookkeeping company to bookkeeping, bookkeeping company arranged a freshly graduated children responsible for his family's accounts, only know to report a tax, the accounts do a mess, uploaded to the electronic tax statement of the statement of the logical relationship is not right, the tax risks need to be written to check the description of this bookkeeping children will not write, for fear of criticism of the leadership, has not been written to explain, did not go to the tax explanation, the final tax door check, and the tax is not the right way. Tax explanation, and finally the tax door to door inspection, found that the company missed more than 1 million yuan of value-added tax, there is no way to make up for the tax, late fees, and was imposed a fine of 0.5 times;

Second, the external reasons 1, routine tax inspections

Taxes in the annual inspection targets, such as for a particular industry, each year, you must ask to complete the inspection of 20% of the proportion, in which case a random sampling, it is possible to check your home;

Third, the tax system, the tax system, the tax system, the tax system, the tax system, the tax system, the tax system and the tax system.

2, the tax task is heavy, must be door-to-door inspection

Tax workers have revenue tasks, this is an indisputable fact, the tax task can not be completed, how to do? Definitely want to pick some tax units to check, let them pay back taxes.

You may want to ask, how does the tax know which unit has not paid enough tax? This also need to ask, grass-roots tax administrators every day is to face that a few taxpayers, what is the situation of the enterprise, can not say 100% understanding, but also have to know a rough it!

3, the use of big data for risk detection

Now the big data is so powerful that you can not imagine, the tax will be based on your company's invoices, tax declarations, social security payments and other data, set up N risk points, once your company triggered to the risk point, will cause early warning, and then layers of push, and finally asked the company to issue a description or direct door-to-door inspection, in this case, it is also very able to find the enterprise's The first thing you need to do is to get a good deal on a new product.

In a word, if you want people to know unless you do not do, set up "two sets of accounts", "off the books" is illegal, do not take chances!

Just these methods, two sets of accounts of 99% of the enterprises will be found out:

First, the number of employees and the size of the revenue does not match.

2nd, employee wages have been stable for many years, the majority of employees are paid according to the local most social security payment standards.

3rd, the number of pieces on the employee piecework payroll differs greatly from the actual output.

4th, the company's production of water and electricity costs and the company's production scale is seriously upside down.

5th, the company's financial staff and the boss's private card there are frequent large amounts of money flow.

6th, the same set of financial software in the company there are multiple sets of accounts.

No. 7, the company's advance receipts are large, and the size of the company does not match, or the advance receipts have been pending for a long time.

8th, the company's accounts payable, other accounts payable balance is large and there is no clear payable unpaid reasons.

The 9th, the company will transfer a large number of funds to a personal (including the boss) other accounts receivable, and there is no sufficient reason.

The above points hope that your question will help.

Look at those answers really want to laugh.

1, the tax authorities, not many understand accounting. They are in the line of tax policy, but the knowledge of accounting may not be very deep, checking the accounts is auditing matters, let them audit, they can only occasionally find out by fluke, and find out the reason from the report mostly.

2, I mixed in the state audit a bit, specializing in difficult cases. It can be said that there is really no false accounts, as long as you want to check, and have the time and energy to check, there is no check. The so-called off-balance sheet, two sets of accounts or tax evasion, are all child's play. It's almost a handful. But the methods are endless, and even less likely to be audited by the unit of prior insight. If they know your method, then they have been prepared, and even re-do a set of accounts specifically for you to check, you can check what?

So, the information provided by the supplementary inspection unit, I am not much to look at, because my audit notice sent to them in advance, they are specifically invited to review the information given to us, I review these, interesting? They have the money to hire the same people are not ordinary high people.

The specific method here is not appropriate to openly say straight ...... anyway, let a person jump off the building there; let the boss confess even his wife and partners do not know more than ten million dollars Private money there; private boss confessed to tax evasion amount of probably less than 200 million is not less than a lot of (Chopping tax evasion of countless, but I am not the tax department audit identity, so never report. On the contrary, the audit of a sub-provincial city of the state and local taxes, so that many companies tens of billions of dollars in back taxes); let the investigated person to sign to confirm that they said straight: signature is dead, do not sign is also dead also ......

Inventory accounts do not match the real, the tax office as long as the warehouse inventory, found that warehouses do not match the inventory on the books, it is very easy to detect two sets of accounts