The subsidiary company of Sun Nonferrous Metals needs to pay more than 10 million in taxes after receiving the Tax Treatment Decision

2022-05-06 0 By

China Singapore Finance & Economics (Apr. 8) — Rising Nonferrous Metals Co., Ltd. announced on the evening of April 8 that Guangdong Rising Nonferrous Metals Import & Export Co., LTD., a wholly-owned subsidiary of Rising Nonferrous Metals Co., LTD., received the “Tax Treatment Decision” from the Guangdong Tax Bureau of the State Administration of Taxation on April 8.It was mentioned in the announcement that the import and export companies obtained a total of 58 non-conforming VAT invoices for purchasing goods from Shanghai Bouqu Chieftrade Co., Ltd. from January 1, 2017 to December 31, 2017, and declared the deduction of input tax. The total amount of the invoices excluding tax was 56,667,014.69 yuan.The total amount of tax is 9,633,392.57 yuan and the total value tax is 66,300,407.26 yuan.From December 2017 to November 2018, RMB 9,633,392.57 value added tax was underpaid, RMB 674,337.48 urban maintenance and construction tax was underpaid, RMB 289,001.78 education tax surcharge was underpaid, and RMB 192,667.85 local education surcharge was underpaid.At the same time, the above invoice involves the pre-tax expenditure cost of goods in enterprise income tax of 56,667,014.69 yuan, resulting in the underpayment of enterprise income tax.The company said it should pay 9,633,392.57 yuan in value-added tax, 674,337.48 yuan in urban maintenance and construction tax, 289,001.78 yuan in education tax and 192,667.85 yuan in local education tax during the inspection.The taxable income of 2017 shall be increased by RMB 56,667,014.69, and the 2017 enterprise income tax shall be paid by RMB 14,166,753.67.At the same time, import and export companies that fail to pay value-added tax, urban maintenance and construction tax and enterprise income tax within the prescribed time limit, in addition to the deadline for recovery, according to the provisions of the date of overdue payment of tax, on a daily basis by 0.5% of the overdue tax.The back taxes and late fees are expected to reduce 2021 annual net profit by approximately $39,519,264.59 (including back taxes of $24,956,153.35 and late fees of $14,563,111.24).The company said the violations occurred during 2017.At present, the production and operation of import and export companies are normal.This tax treatment has no significant impact on the company’s continuing operations.The company, its holding subsidiaries and all directors, supervisors and senior managers will conscientiously study relevant laws and regulations, improve the awareness of tax payment in good faith, strictly implement and strengthen the company’s tax administration, and do a good job in all aspects with a more positive attitude to safeguard the interests of the company and shareholders.(after)