Announcement issued by the State Administration of Taxation: minor tax breach of credit can be conditionally repaired
Recently, the State Administration of Taxation issued a notice on matters related to the Restoration of tax Credit, with effect from January 1, 2020, To carry out tax credit repair for enterprise taxpayers brought into tax credit management by making credit commitments and correcting untrustworthy behavior, so as to further encourage and guide taxpayers to enhance their awareness of paying taxes in good faith in accordance with the law, We will actively build a new type of tax supervision mechanism based on credit.
It is understood that credit repair is not a simple "whitening record", nor is it a simple "exit punishment". In accordance with the principle of limited repair, the notice defines 19 kinds of tax credit breach of credit with minor or no serious social impact and the corresponding conditions for repair. It includes a total of 15 items such as tax declaration, tax payment and data filing in accordance with the prescribed time limit, and 4 cases of direct judgment of Grade D. From the perspective of tax credit evaluation in previous years, the above situations occur frequently and involve a wide range of taxpayers. After the implementation of the announcement, taxpayers who meet the requirements may apply to the tax authorities for tax credit repair.
The premise of carrying out tax credit repair is to correct the breach of trust. The notice makes it clear that in the following four cases, taxpayers may apply for tax credit repair only if they correct the breach of trust within the prescribed time limit--
If a taxpayer fails to handle matters such as tax declaration, tax payment or filing of materials within the legal time limit and has been reissued, the score of the evaluation index shall be adjusted and the tax credit evaluation shall be carried out in accordance with the scope and Standard of tax Credit Restoration.
If the failure to pay taxes, late fees and fines in full or in accordance with the conclusions handled by the tax authorities does not constitute a crime, and the tax credit rating is directly sentenced to Grade D taxpayers, Only when the tax authorities pay taxes, late fees and fines in full within 60 days after the expiration of the time limit specified by the tax authorities can they apply for tax credit repair.
Taxpayers of abnormal households should fulfill their corresponding legal obligations and apply for tax credit repair only after the abnormal state has been lifted by the tax authorities in accordance with the law. Abnormal household breach of trust tax credit repair can only be applied once in a tax year. The tax year shall run from January 1 to December 31 of the Gregorian calendar.
If the tax credit level is no longer Class D after the tax credit is repaired, and if the person directly responsible for registration or the other taxpayer in charge of the operation has previously been associated with Grade D, he may apply to the competent tax authority to disassociate the Class D connection of the tax credit. (reporter Dong Bijuan)