This question and answer falls within the scope of tax inspection!

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

General inspections are usually carried out by special administrators of the competent tax authorities (2 or more people), who conduct door-to-door inspections of general tax matters of business entities, such as general taxpayer applications, business site inspections, etc. With the continuous deepening of tax reform, it is expressly stipulated that tax administrators are not allowed to set up tax inspection matters by accident and frequently visit the door!

Tax audit is a form in which a professional audit bureau serves as a tax inspector and conducts comprehensive tax inspections in accordance with the law on taxpayers who have illegal tax-related matters or have been reported and verified based on big data comparison. In layman's terms, a tax audit means that the Inspection Bureau has grasped some or all of the clues about the taxpayer's violations of laws and regulations, and goes to the business entity to verify and conduct an in-depth investigation! (Dictated by a staff member of an audit bureau)

Tax inspection has been elevated to tax audit, and the direction is quite clear. Can we know the fact that a business entity has off-book accounts and two sets of accounts? No clues, no tax audit!

There is a high probability that the tax inspection department has already grasped the illegal facts and clues through big data such as the Golden Tax Lao San, administrative department information exchange, and reporting.

Door-to-door inspection consists of two parts: verification and verification. Calculate clues and reported matters, and verify unidentified matters!

Finance and taxation have never been separated. The Audit Bureau studies tax inspection matters all day long. It is more familiar with external accounts and how to operate the two sets of accounts than the relevant financial personnel of the enterprise! Focus on business account book data, logical relationships, bank statements, inventory differences, etc., and you will be able to verify illegal activities! "Second accounts, two sets of accounts" is not difficult for tax audits! The tax bureau audits accounts mainly to verify content related to corporate value-added tax and income tax. Among them, value-added tax is the most important, because the payment of value-added tax means the recognition of income, and only with income can there be profits.

So what are the main records in the internal ledger? Generally speaking, it is income that cannot be invoiced, and there are also expenses that cannot be recorded in the external ledger. The tax bureau can ignore the actual expenditure of the enterprise, but if there is unbilled income, it is tax evasion.

To check VAT, you generally need to check the following items:

1. Purchase and sales contract to confirm whether both parties have intention to cooperate. Some units have lax internal controls and feel that they don’t need it. But when verification requires it, it will be difficult to provide it. Should I just spread my hands and say I don’t have anything?

2. Incoming and outgoing orders and logistics documents from both parties. When the goods left the warehouse, how they were transported, and whether there is a confirmation letter of arrival, these are all very important and are evidence to prove that your business really exists. If the contract is not completed and an invoice needs to be issued, it must be noted that the invoice date cannot be earlier than the delivery date. If it is earlier, it will be a false invoice.

3. Evidence of fund transactions. This requires transferring funds from their respective public accounts and obtaining a receipt from the bank.

4. Detailed account of inventory goods. The main thing is to see if the account facts are consistent. If not, can you explain why. For example, if the book data is large but the actual data is small, then it is found on your personal card that there is capital flow that does not match the actual income level, then it may be determined that there is uninvoiced income. This is tax evasion. Then check the personal accounts of the relevant personnel. If there are large capital flows, then there must be off-the-books accounts.

As for income tax, it mainly depends on whether there are any expenses that cannot be recorded in the account. However, generally the tax bureau will not check so carefully. If the income tax burden is too low, it will first ask you to check yourself and find out. The reason is that most of the methods are to write a self-examination report, pay some taxes and be done with it.

Accounting has very strict logic and it is difficult to make fake accounts. Even if you make fake accounts, the actual situation will be a slap in the face.

How do tax audits detect "off-book accounts" and "two sets of accounts"?

In reality, almost all private enterprises have two sets of accounts. The so-called "internal accounts" are mainly to avoid taxes. The main purpose of setting up two sets of accounts may be to transfer funds.

Therefore, nine out of ten private enterprises cannot withstand in-depth professional inspections. The tax officers in charge are well aware of this, and cannot and must not investigate, because once investigated, the outcome will be difficult to deal with, and in serious cases, the company may face bankruptcy. What's more, the local tax officials always have inextricable connections with enterprises.

So, how are the "off-book accounts" of enterprises discovered by the tax department in reality? I have roughly counted and summarized it, and it is roughly as follows:

1. Most or mainly reports or reflections from within the company, including financial personnel, small shareholders who have withdrawn, and employees with conflicts.

2. In a small number of cases, when tax officials came to inspect, the tax officials found some information on the walls of corporate offices or other casual places, such as customer lists and sporadic records of current transactions, and these customers and The records are not recorded and documented in the company's books reported to tax.

3. For an enterprise that has been put on file for tax audit, when the tax officers interviewed the accounting personnel, the accounting personnel were unable to answer and answered bluntly or made mistakes. For example: The tax officer asked: My boss recently bought a luxury car and a new house. Where did the funds come from? Was it borrowed from the company? The accountant replied: No loan.

However, the company’s accounts have not paid dividends in recent years, so there may be another source of funds - off-book income. (The car belongs to the company, and the house belongs to the individual.)

In addition, professional tax inspectors consider the company’s production and operation capabilities, the production line capacity of a certain professional equipment, investment scale, loan scale and other indicators. The normal output of an enterprise can be easily calculated. If the actual output differs too much from the normal output without reasonable reasons, there must be off-book income. Of course, tax inspectors will not dig out a company’s “off-book accounts” without special reasons, unless the “tax-enterprise relationship” is too rigid.

So, how do companies with "off-book accounts" avoid risks? I have specialized research on this. But this topic has left this topic.

Some companies with irregular financial and tax regulations have "off-book accounts" and "two sets of accounts." These companies are inevitably worried about whether they will be caught by tax audits. Below, let’s talk about how tax audits discover these situations. 1. Causes of tax audits

If a company is subject to a tax audit, there may be a variety of reasons. For example, information received from management departments and risk departments; tasks assigned by superior tax authorities; case sources randomly selected based on enterprise type, industry nature, scale, tax burden rate, risk level, etc.; problems arise in the upstream and downstream of the enterprise, It involves an inspection, entrusting a co-investigator; or the company has been reported; or it is a case assigned by the superior tax authority, etc. Various situations are possible.

In the current era of artificial intelligence, tax authorities have big data, and with the assistance of Jinsan system and crawler technology, they no longer have to rely on a large number of manual labor to complete tasks.

(1) Application of crawler technology

Some companies have previously advertised online to promote a certain business of the company. Later, through crawler technology, the tax authorities discovered that this business had never filed a tax return. After investigation, it was found that the company had engaged in tax evasion, and finally the tax authorities required it to pay back taxes and fines;

(2) Comparative comparison with companies in the same industry

Another company hid part of its income by not issuing invoices. The tax authorities found anomalies through comparison with companies in the same industry. Because according to the technology of this industry, 5% of waste will definitely be generated. Generally, the sales of waste materials are declared through non-invoicing income. The company reported all income from special checks, so the tax authorities found something suspicious. Finally, the company was punished.

(3) The power of electronic ledgers

There is a company that does not require invoices because its customers are retail investors and individuals.

So the boss had an idea. Since these people didn't want the tickets, why not give them to other guests and charge a "service fee". Who would have known that after a comparison with the Jinsan system, it was found that the company's inputs were all electronic components, and its sales were all kinds of things, and the business was irrelevant, so the company's violations were immediately discovered.

In addition, the tax authorities also have some risk warnings, and companies with problems themselves can be easily discovered. 2. What companies need to do

For companies with two sets of accounts, the fundamental problem must be to solve the problem of the two sets of accounts and merge the two accounts into one. Of course, this matter is a systematic project and cannot be rushed. Regarding the financial affairs of a company, it is still necessary to conduct self-examination and risk control to see how big the tax-related risks of the company are, and try to avoid being "accidentally injured".

For example, financial personnel must first review the reported information to avoid data inconsistencies from multiple data sources.

Furthermore, we should still pay attention to obvious problems in the financial statements, such as excessively large advance receipts and find out whether the income has been reported in a timely manner.

Finally, for financial personnel, they must not participate in high-risk matters.

In general, companies with financial and taxation irregularities should make corrections in a timely manner. After all, big data is becoming more and more developed now, and it is easier to have "two sets of accounts" and "off-book accounts" discovered.

The answer to this question is as follows:

1. There are many ways for tax audit to find out external accounts and two sets of accounts. First, insiders within the company report the existence of off-book accounting; second, external reports report that the company conceals income, fabricates costs and expenses to evade state taxes; third, discovers corporate tax evasion through third-party information, such as investigating and punishing external false reports. The invoicing company found clues to the company's evasion of state taxes; fourth, the tax authorities found out through routine inspections. For example, during daily inspections, it is discovered that there are two sets of accounts in the company's computer system, or through on-site inspections, it is discovered that the company has two sets of accounts.

2. During the inspection process, the tax authorities cannot guarantee that all companies that maintain two sets of accounts and off-book accounts will be discovered and investigated. Even if no evidence is found that the company has created two sets of accounts to evade state taxes, the tax authorities will discover the tax-related risks of the company through comprehensive analysis.

3. Not all companies that make two sets of accounts are tax evaders. In practice, some companies may have two sets of accounts, one of which is actually a running account, making it easier for the boss to understand the company's income and expenses. If the purpose is not to evade state taxes, there is no risk in these two sets of accounts.

4. I personally recommend that financial personnel not be involved in making two sets of accounts. If you make two sets of accounts to evade state taxes, in this case the finance staff will be directly responsible for evading state taxes. If you evade state taxes, The amount of tax evasion is huge and may involve criminal liability, so you must keep a clear head. If you just make one set of accounts as required by your boss and have no idea whether others have a second set of accounts, you are not responsible.

There are many ways to detect two sets of accounts in tax audits. However, the tax authorities’ audit of enterprises is not to check whether there are two sets of accounts, but to inspect the tax evasion and evasion of enterprises. In addition, not all off-book accounts or two sets of accounts have problems.

In reality, many companies have two sets of accounts or external accounts. In order to apply for more bank loans from financial institutions, some companies inflate their assets, operating income and profits, etc., and issue audit reports after auditing by audit institutions (I would like to add that the audited unit spends money to hire an accounting firm to issue an audit report How authentic and accurate is the audit report? )

In order to pay less tax and hide income, some companies purchase VAT input tax invoices to increase input tax deductions and make false statements. Costs and expenses, false listing of assets and liabilities, etc. are used to achieve the purpose of tax evasion.

This kind of false accounting cannot be completed by the financial department independently. It requires the cooperation of multiple departments within the company and external supply chain customers.

There are also listed companies that do not hesitate to make false accounts in order to make money.

Of course, some companies’ external accounts and two sets of accounts are only for internal accounting and management. In addition to normal accounting, the company’s accounting content is refined according to the needs of business development, that is, The content of operational or management accounting is more to meet the internal and operational management of enterprises. This type of accounting system has nothing to do with false accounting.

In essence, the purpose of tax audit is not to check the company’s two sets of accounts or external accounts, but to deter companies that evade taxes. So how do the tax authorities audit companies? tax evasion?

1. Taxpayers must be well aware of the powerful functions of the third phase of the Golden Tax (and the upcoming fourth phase of the Golden Tax), such as the company’s sales, collection and value-added tax invoice issuance. , and whether the company's inventory is abnormal, can be captured through the golden tax system, and then further verification of the company can be carried out.

2. The actual tax burden rate of enterprises is abnormal. For example, the value-added tax burden rate is higher than the industry average level, and the corporate income tax tax burden rate is lower than the industry average level. It should be said that if the actual tax burden rate of an enterprise is too high or too low, it is a risk for the enterprise. Then the tax authorities will inspect the company if the tax burden rate continues to be abnormal, and then discover the problem of tax evasion by the company.

3. The tax authorities can discover tax-related anomalies of the enterprise based on the financial reports provided by the enterprise. For example, a company has suffered losses for many years in a row, but still has cash flow to survive; the company's accounts receivable balance is extremely large, which does not match the company's actual operating income; the company's inventory balance is very large, accounting for a large proportion of the current operating income; The company has been profitable for many years, but does not pay dividends; the company only has output tax but no input tax, or has only input tax but no output tax, etc. When there is an abnormality in a company's financial data, an early warning will appear.

4. The tax authorities receive reports or assist in the investigation of special value-added tax invoices, etc., which will lead to tax-related problems of the company; there are also tax evasion problems among upstream and downstream customers, etc., and then the related companies are found out. This situation is also common.

In short, tax authorities have many means to investigate corporate tax evasion. As financial personnel, you should avoid participating in the malicious practice of two sets of accounts by enterprises, especially tax evasion. With the continuous advancement of information technology, this space will become smaller and smaller.

February 24, 2021 This is an interesting question. As the saying goes, "If you want others not to know, you have to do nothing yourself." If a company sets up "off-book accounts" and "two sets of accounts," there is a 90% chance They want to evade taxes, so how do the tax authorities know that companies are evading taxes?

I work in a tax accounting firm and have a close relationship with enterprises and taxation. I should be familiar with the issue of how taxation knows that enterprises have set up "two sets of accounts" and "off-book accounts". Right to speak, regarding this issue, I have summarized the following two reasons: 1. Internal reasons 1. Report from insiders

This reason is the most direct and accurate.

I once came into contact with a construction company. The accountant Xiao Wang resigned, and other employees resigned. The company paid employees severance compensation according to the standard. However, Xiao Wang offended his boss during his work. When he resigned, the company did not pay him a dime of severance compensation. Xiao Wang felt it was unfair, so he went to negotiate with his boss. After several negotiations, Xiao Wang not only did not get any The compensation he deserved was also humiliated by his boss. In a rage, Xiao Wang went to the tax bureau to report the company's tax evasion with his real name. Since Xiao Wang had first-hand information about the company's finances, the evidence was iron-clad, and it was a real-name report, so the tax department had to check it.

2. Irregular corporate finance and abnormal data lead to tax risk warnings

In order to save personnel expenses, many companies do not pay attention to financial work and think that accountants can keep accounts. Therefore, when recruiting accountants, they do not consider The professional level is as long as the salary is low.

As everyone knows, financial personnel whose professional skills are not up to standard bring huge tax risks to enterprises!

For example: I have been in contact with a company before and found an accounting company to do the accounting. The accounting company arranged for a child who had just graduated to be responsible for his family’s accounting. He only knew how to file taxes and accounts. It was a mess. The logical relationships of the reports uploaded to the electronic tax bureau were all incorrect. Tax risk investigation required a description. This child who kept accounts could not write. He was afraid of criticism from the boss, so he never wrote a description or went to the tax office for explanation. Finally, the tax After a door-to-door inspection, it was found that the company had missed paying more than 1 million yuan in value-added tax. It had no choice but to pay back the tax, late payment fees, and was fined 0.5 times; 2. External reasons 1. Routine tax inspection

Taxation will have inspection indicators every year. For example, for a certain industry, an inspection ratio of 20 must be completed every year. In this case, random inspections may be conducted at your home; 2. The taxation task is heavy and door-to-door inspections are required

It is an indisputable fact that tax workers have fiscal revenue tasks. What should we do if we cannot complete the tax tasks? Be sure to select some tax-paying units for inspection and ask them to pay back the taxes.

You may want to ask, how does the tax department know which unit has not paid enough taxes? Do you still have to ask? The grassroots tax administrators face those taxpayers every day. They cannot say that they have 100% understanding of the situation of the company, but they have to have a rough idea! 3. Use big data for risk investigation

Today’s big data is so powerful that you can’t imagine. The tax will set up N risk points based on the invoices issued by your company, taxes declared, social security paid and other data. , once your company triggers a risk point, it will trigger an early warning, and then push it layer by layer, and finally require the company to issue instructions or directly come to inspect. In this way, you can also find the company's tricks. In short, it is illegal to set up "two sets of accounts" and "outside accounts" if you don't know what to do unless you do it yourself, so don't take any chances!

With just these methods, 99% of companies with two sets of accounts will be detected:

First, the number of employees does not match the scale of revenue.

Second, employee wages have remained stable for many years, and most employees’ wages are paid according to the local social security payment standards.

Third, the number of pieces on the employee piece-rate wage list is very different from the actual output.

Fourth, the company’s production water and electricity charges are seriously inversely related to the company’s output scale.

Fifth, there are frequent large-amount capital flows on the personal cards of company financial personnel and bosses.

Sixth, the company has multiple sets of accounts in the same set of financial software.

Seventh, the company's advance receipts are large and do not match the company's scale, or the advance accounts have been outstanding for a long time.

8. The balance of the company’s accounts payable and other payables is relatively large and there is no clear reason for the unpaid balances.

9. The company transfers a large amount of funds to an individual (including the boss) to account for other receivables without sufficient reasons.

I hope the above points are helpful to your questions.

I really want to laugh when I look at those answers.

1. There are not many tax bureau personnel who understand accounting. They are good at tax policies, but their understanding of accounting may not be very deep. Auditing external accounts is an auditing matter. If they are asked to audit, they can only occasionally find out by luck, and the reason for the discovery is mostly due to reports.

2. I have been in the national examination for a while, specializing in rare and difficult diseases. It can be said that there is really no false account that cannot be detected. As long as you want to check it and have the time and energy to check it, there is nothing that cannot be found. Generally speaking, the so-called extra accounts, two sets of accounts or tax evasion are all childish. It's almost within reach.

However, there are endless methods, and it is impossible for the audited unit to have insight into them in advance. If they knew your method, they would have taken precautions and even made a new set of accounts specifically for you to check. What else can you check?

Therefore, I don’t read much of the information provided by the re-inspection unit, because when my audit notice was sent to them in advance, they specially asked an expert to review the information before handing it over to us. , I will review these again, is it interesting? They have money, and the people they hire are also not ordinary experts.

It’s not appropriate to talk openly about the specific methods here... Anyway, there are people who make people jump off buildings; there are also people who ask bosses to reveal private money of more than ten million yuan that even their wives and partners don’t know; private bosses confess the amount of tax evasion There are probably a lot of people with less than 200 million (I have caught countless tax evasions, but I am not an inspector of the tax department, so I never report it. On the contrary, when I audited the national and local taxes of a sub-provincial city, many companies made tens of billions in back taxes); When the people under investigation were asked to sign for confirmation, they said straight away: If you sign, you will die. If you don't sign, you will die...

The inventory does not match the actual account. The tax bureau only needs to go to the warehouse to take inventory and find that the inventory in the warehouse does not match the inventory in the account. If they don’t match, it’s easy to detect two sets of accounts