Analysis of Taxation Issues in Papermaking Industry

Papermaking refers to the manufacture of paper and paperboard made from pulp or other raw materials (such as slag wool, mica, etc.) suspended in a fluid through paper machines or other equipment formed or manually manipulated.

First, industry characteristics

The papermaking industry has a certain amount of scientific and technological content. The production status has a lot to do with the skills and mechanization level of workers.

The main raw materials used in the industry production are wheatgrass, ryegrass, pulp plates, caustic soda, and the main auxiliary materials are ethyl chloride, AQ, etc. The main power is electrical energy, and the main fuel is raw coal.

The deduction vouchers for raw materials are mostly purchase invoices for agricultural and sideline products, and the amount of input tax that can be deducted is relatively large.

Second, the procurement process

The raw material structure is mainly wood pulp and straw pulp, which requires a large amount of wood, wood chips, wheat straw, cotton rods and waste paper; imported waste paper and wood chips. This section uses a large number of agricultural and sideline products to purchase invoices, and it is prone to the phenomena of deducting VAT input tax. The difficulty and focus of management is on the authenticity of the acquisition business.

Agricultural product purchase invoices are the only type of VAT deduction vouchers that are filled out by taxpayers and self-declared deductible invoices. They have a variety of types of bills, vary in terms of projects, use a wide range of applications, have a large amount of money, and have a large amount of tax deductions. And many other features. In recent years,

Due to the lack of scientific and effective monitoring measures, the invoices for agricultural product purchases that have not been subject to any certification system have been opened by the enterprises themselves. This has opened the door for lawless criminals to deduct tax payments, and has become an uncontrollable basis for grassroots tax authorities. Big policy loopholes. In particular, in recent taxation and export tax fraud cases investigated by the tax authorities, it has been found that some lawbreakers and enterprises in the society use agricultural products as the main raw materials to produce goods or export goods for tax evasion and tax fraud. Therefore, it has become an urgent problem to be solved in the current VAT management to take practical and effective measures to strengthen the management of abatement of agricultural products and to strengthen the management of tax refund for exported goods produced with agricultural products as the main raw material.

Solution: The first is to strictly scrutinize the use of invoices for qualification examinations and raise the "threshold" for good. Taxpayers who apply for the use of agricultural product purchase invoices are required to perform a pre-examination review on a household basis. In addition to the qualification examination, the use of the annual purchase invoices shall also be systematically checked. If any problems are found to be false, the qualification of self-issued purchase invoices shall be canceled to ensure that Source monitoring is good. The second is to formulate supporting management systems, strengthen daily monitoring, and ensure good management. Formulate the system of regular cancellation of purchase invoices for agricultural and sideline products, specify management responsibilities so that problems in use can be found out in a timely manner, and inspections can be intensified. The large-scale single purchase business is checked at any time by the responsible person of the tax source management, and at the same time, inventory inspections are checked for abrupt changes. In order to prevent inventory materials from being “circulated on the spot”, other acquisitions are subject to regular inspections; corporate acquisitions must follow the cash payment management system, and bank transfer should be used if the payment limit is more than 1,000 yuan, and “payment of corporate purchase funds” should be submitted when the tax return is filed. "Report Form"; improve the purchase invoice issued by the project settings, the identity of the shipper (including ID number) to a prominent position, if necessary, long-term supply of the shippers can ask for a copy of identity certification. When the enterprise declares that there is an acquisition business in the current month, it must hold the current inspection report issued by the responsible person of the tax source management; the person responsible for the management of large-scale acquisition business of the tax source must carry out on-site inspection; strictly distinguishes the floating merchant hawker and purchase and sales wholesaler The division of boundaries, once the purchase and sale of agricultural and sideline products, will be incorporated into tax administration at any time, and purchases and use of ordinary invoices in accordance with the regulations; for purchase enterprises, any purchases from wholesale dealers shall not be allowed to self-invoicing deductible taxes, but The seller obtains an ordinary invoice and calculates the deductible tax according to the principle of price and tax diversion. The third is to implement internal control laws. That is to improve the internal transfer procedures for acquisition units, establish a restraint mechanism. In the investigation work, it was found that all units that have established and improved various formalities and delivery systems, from the acquisition to the invoicing and settlement of the entire process, are operated by multiple positions. Their division of labor is clear, mutual check and supervision, and large loopholes are unlikely to occur. The fourth is to increase tax inspections and promote the establishment of long-term effective mechanisms. In the tax audit, the authenticity of the acquisition link should be checked; the loss of acquisition materials and the transfer of input tax amount are followed; and the third is the follow-up inspection of the larger-scale supplier to the upstream supplier. The fourth party is to measure whether the original consumption quota and the normal loss rate are in line with reality. If it is not in conformity with reality, it should be adjusted in time. Through tax inspections, a long-term management mechanism has been gradually established that involves inspection, promotion, inspection, and fine management.

Third, the production process

In the production process, the amount of raw materials consumed by unit products is basically fixed, and the input-output ratio is basically stable. Such as high-strength corrugated paper tons of wheat straw consumption of about 1.8 tons, input and output rate of about 60%; ordinary corrugated board tons of wheat straw 1.6 tons, mixed with straw 20% - 30%, tons of paper consumption of 1.8 - 2 tons, The input-output rate is 50%-55%. Different types of paper consumption are different, such as high-intensity corrugated paper tons of power consumption 380-400 degrees; medium-intensity corrugated paper, corrugated paper tons of power consumption is 360- -390 degrees. The consumption of coal per unit of product is basically fixed at 0.63 to 0.75 tons. Different types of paper carts and the number of cylinders attached to the equipment, the new and old equipment are different, and the daily production capacity varies greatly, such as the daily production capacity of single 1092, 1575, 1760, 1880, 2400, 2880 and 3200 type paper carts (double cylinders). They were 5 tons, 8 tons, 10 tons, 13 tons, 15 tons, 17 tons and 20 tons respectively. For every additional cylinder in the paper cart, the daily production capacity will increase by 0.8 tons.

The production of a certain amount of finished products due to the consumption of raw materials, power (electricity), fuel (coal) are basically fixed, clear, in a certain period of consumption of raw materials, power (electricity), fuel (coal) offset the value-added tax The input tax amount is relatively determined. Since the input-output ratio is fairly stable, the amount of finished products in the current period can be calculated from the consumed raw materials, power (electricity), and fuel (coal), and the quantity or amount of finished products on the control booklet and voucher can be calculated. Determine whether the company accurately records the exact number of finished products produced. The tax risk point is whether it reflects the quantity of finished goods. Through the verification of the input and output rates of raw materials, power (electricity), and fuel (coal) that are consumed, or based on the model number of the paper car, the number of cylinders involved, and the newness of the equipment, the daily production volume can be calculated and then the production time or work stoppage. Time, can also calculate the company's output in a certain period of time, determine whether the company how to book, conceal production and other illegal phenomena. The solution is to move companies step by step, make records step by step, reflect on the facts step by step, and don’t use too much cleverness.

Fourth, the sales cycle

(Sales methods, export, packaging, printing, etc.) involve many problems in the sales process, and fail to truthfully declare sales revenue or report sales revenues. They should be treated as different sales, excluding false sales and other phenomena. If self-produced products are used for gifts, publicity, and not treated as deemed sales, less sales tax for VAT is levied. Problems such as irregularities in the reversal of red characters have also occurred from time to time. This involves more tax-related risks, the vast majority of which appear to be tax evasion.

According to the quantity of finished products at the beginning of the inventory + the quantity of finished products in the current period - the quantity of finished products produced at the end of the inventory, the company can accurately calculate the number of sales for a certain period of time, and then calculate the taxable sales revenue according to the sales unit price, and subtract the taxable sales revenue. The declared sales revenue can be used to derive the company’s less-reported sales revenue during the current period. Multiplying by the applicable tax rate can be used to calculate the value of the VAT tax that is underreported. Since most of the cases result in the fact that they do not pay or pay less tax, there is no doubt that tax evasion is regarded as tax evasion. In fact, a large part of companies are caused by failure to understand tax policies or withholding taxes. It is therefore necessary for enterprises to strengthen policy learning in this regard and communicate with the tax authorities and consult more because the right to consult is a taxpayer’s right. Should play a role.