The Business Entity Shall Check Whether It Reports Illegal Input Voucher, so as not to Report Input Tax Falsely ,or Will be Fined Penalty in addition to The Overdue Tax.
National Taxation Bureau of Kaohsiung, Ministry of Finance (NTBK) expressed that, recently it is found that some business entity use input vouchers not for itself to report them as input tax amount, which leads falsification of input tax amount and was determined for overdue business tax and penalty. Such loss outweighs the gain.
NTBK expressed that, the amount of business tax payable or overpaid by a business entity will be the difference between the output tax in a tax period and the input tax in the same period. The input tax is defined as the business tax paid by a business entity in accordance with the act at the time of purchasing goods or services. When business entity submits the deduction of output tax amount minus the input tax amount, it shall also obtain the uniform invoice clearly containing its name, address, business administration number and the business tax amount. If it uses the vouchers from the counterpart not actually trading with, and which leads falsification of input tax amount, then in addition to overdue tax, the taxation authority will also determine fines for Article 44 of the Tax Collection Act– failure to obtain legal voucher and Article 51 of the Value-added and Non-value-added Business Tax Act (hereinafter referred as “BTA”).
NTBK had found that when filing the business tax return of July-August in 2016, a business entity uses 4 uniform invoice issued from Company A to Company B, sales amount totaled more than 53,000,000 (NTD) as its own input tax voucher and report them for deduction of output tax amount. Although such business entity indeed purchase some goods; however, it reported the deduction with the vouchers not from the counterpart not actual trading with. The result of review still founds that more than 2,000,000 (NTD) of the input tax amount was reported falsely, the determined overdue business tax and penalty sum up more than 4,000,000 (NTD).
NTBK called on that, after declaring the tax return in each term, the business entity shall check whether there is any voucher evidencing the input tax amount obtained or preserved against the law. In case of any violation, before any informer or investigation implemented by an investigator appointed by the tax collection authorities or by the Ministry of Finance, only when the business entity voluntarily report to the tax collection authority and pay the overdue tax and interests, may such entity be exempted from the penalties concerning the tax evasion due to breach of Article 41 - 45 of the Tax Collection Act and Article 51 of Business Tax Act.