Zong constitute tax evasion tax evasion experts Xiangjie door Wahaha

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Zong constitute tax evasion tax evasion experts Xiangjie door Wahaha Powered By Docstoc
					Zong constitute tax evasion experts Xiangjie Wahaha "tax evasion
Constitute tax evasion or tax evasion
In Zong's a Beverages in most media reports or Zong constitute the subject
of tax evasion. A lot of media violations and tax evasion and tax revenue confuse the
crime, or even directly identify Zong constitute tax evasion.
For these statements, and Taxation Law of China University of Political Science
Director of the Centre Professor SHI Zheng-wen, tax violations and tax evasion and
tax evasion are different legal concepts, the former is tax evasion, tax fraud, tax
evasion, taxes and other tax violations general, the latter is specific behavior of certain
tax crimes, including tax evasion is generally illegal, but tax evasion is a serious
offense constitutes a crime. Therefore must not be confused.
Professor Shi, China's laws on tax evasion and tax evasion are very strict
requirements, Zong constitute tax evasion or tax evasion depends on whether the tax
administration to meet the elements of law and criminal law. Zong as a taxpayer that
is forged, altered, concealed, unauthorized destruction of books, accounting
documents, or overstating expenses in the books or not the column, the column less
income, or notice by the tax authority refuses to file report, or engage in acts of false
tax returns, etc.. Only Zong implemented one of the four kinds of criminal acts,
resulting in tax payable is not paid or underpaid, to be held to be tax evasion. From
the current master of the material provided and read, Zong unlikely to implement the
first three acts, if they constitute tax evasion, only be carried out acts of false tax
returns, but this has yet to be confirmed evidence handling agencies in the
investigation. If not constitute tax evasion, tax collection law may constitute article 64,
paragraph 2, not file tax returns, unpaid or underpaid tax act, tax violations, but this
can not be held criminally responsible. Only possible tax evasion a crime. Therefore,
the case must be investigated on the basis of law is certainty Zong and types of
tax-related nature of the act, must not generally consistent with tax evasion.
For Zong constitute tax evasion, the Central University of Finance and tax law expert
Professor Cai Chang believes that as long as the tax collection storage, must be
treated in accordance with the tax already paid, do not define the crime of tax evasion
as its base.
The Chinese University of Political Science Professor SHI Zheng-wen, a different
view. He believed that nature, the additional tax is placed on file prior to subsequent
acts of contrition, did not affect the qualitative nature of the case, or should be in
accordance with the unpaid or underpaid taxes previously recognized. However, in
order to encourage remedial actions and surrender repentance, in the punishment
should be lighter. According to the Administrative Punishment Law Article 27 and
Article 67 of the Criminal Code, Zong before placing the additional tax, is take the
initiative to reduce and eliminate violations of the harmful consequences and should
be mitigated punishment; if the offense is minor, you can also exempted from
punishment. Germany, China Taiwan and other tax law has provisions on the
surrender exemption. Because our tax system defects and delay the rule of law, tax
law is also more common taxpayer, should further improve the legal responsibility to
remove the tax system to encourage taxpayers to surrender and to promote its return
to the honest taxpayers of the road, by means of the taxpayer's effort to
promote tax collection.
The income tax required under the law to clarify how
According to the news media reported, as the Danone Wahaha joint ventures,
shareholder and CEO, and a number of domestic private enterprises such as Wahaha
chairman Zong shareholders, can be described as multiple, revenue can be said to
constitute more complex. According to public disclosure of the reports indicate, Zong
three main sources of income, that pay raise wages, profit incentives and equity
Zong has an open letter claiming to be "the cheapest of CEO".
The letter said, of their income, including € 3,000 monthly salary, 10 million euros in
annual subsidies, plus 1% of the joint venture's annual profit bonus. Click
here to estimate if, Zong decade about 70 million yuan of total revenue.
However, income from Zong greater equity incentive income received. Danone and
its subsidiaries under both signed with Zong "reward share
agreement" reached in a time when the agreement was signed, about
several of its overseas subsidiaries, equity incentives to Zong, were able to enjoy such
stock dividend ; greater receipts from stock buybacks, the two sides agreed
transaction price of stock repurchase, a joint venture with Danone in China linked to
the company's performance.
Tax authorities over access to the bank from the exchange certificate, in 1996? 2005,
Zong total access "service fee" 842.4183 million; in the
"Award Shares" arrangements, payments can add up Investment
Co., Ltd., Calvin Co., Ltd., a subsidiary of a number of options outside the
"reward" to Zong, in 1996, -2,006, the number of bonus shares
from two companies, the total received funds 1505.6876 million; the rest of about
4,000 million U.S. dollars, it is Danone and gold increase investment to repurchase
shares on behalf of the two companies, the number of payments.
Which match up to Zeng Yin Zong marriage with Robust company to a foreign
subsidiary stock buy-back mode, more than 100 million dollars were given a reward.
SHI Zheng-wen of China University of Political Science Professor, for such as Zong
as diverse complex of high income earners, should be the nature and source of their
income carefully screened, are kind of certainty and to determine the applicable tax
rate after tax according to law. Under the existing "Personal Income Tax
Law," who are domiciled in China, or not domiciled in the territory of
individual residents have lived for one year, regardless of income within its territory,
or foreign income should be reported and paid. Under the "Personal
Income Tax Law Implementation Regulations" requirement, Zong within
China as a joint venture 在 serve on the management officers have 履 行
"service agreement" and to obtain money compensation and Gu
Fen Deng Tigong Laowusuode, Suiranzhifu Didian the outside , its source of income
remains within the territory of China shall be in accordance with the law from our
country's income tax, no deduction of tax already paid abroad. But from
outside the company to pay dividends, bonuses, the income is from overseas, to offset
the foreign tax in China after the tax.
Zong received on "service fees" of qualitative and there is
controversy over the applicable tax rate, Professor SHI Zheng-wen, as Zong has the
dual role of shareholders and managers, according to the nature of the income tax
requires in-depth analysis. Because of different income, its tax rate and deduction
methods are different, have different effects on their tax burden. In the present case,
the Zong's income may be related to salaries and wages of perjury, contract
income tax rates, dividends and bonuses. Salaries and wages per month more than
100,000 yuan or more, the tax rate of 45%; perjury income of over one million,
according to 40% tax rate; contract leasing business in the taxable income over 50,000
yuan or more, the rate is 35%; dividends, bonuses, the rate of 20%. Although the tax
bill difference is not large, but also in this part of the revenue collected according to
the nature of identified.
Professor Shih, most need to ascertain the Zong gained by 1% of annual profit
incentive, equity incentive, stock buybacks and other income which the income tax in
accordance with what. Materials from the existing case, these gains are in essence
working for Zong performance and gains, such as the two sides agreed price of stock
repurchase transactions tied to company performance. So, whether it is a
"service charge" form, or "equity buy-back
model" award, in nature are all salaried income. Of course, Zong identity
based on the company's shareholders earned income, income tax shall be in
accordance with the dividends.
Central University of Finance and Professor Cai Chang that "tax evasion
Gate" reflects our regulatory tax on high-income groups, there's
a lot of problems. Although these special groups in China to strengthen efforts in
taxation adopted many measures, but no good solution to these problems. Those
incomes are relatively high specific groups such as entrepreneurs, corporate
executives because of their multiple identities, complex sources of income poor
screening, so it is difficult for tax authorities under the control of their sources of
income and nature. Example, the form should have been issued to employers through
wage labor income reduce the tax burden in order to achieve the purpose, they can by
way of equity awards made gains. At the same time there is a large number of cash
transactions are more easily lead to the phenomenon of tax evasion. In addition, in
practice, for these people's personal consumption and corporate spending is
difficult to distinguish between screening.
Wahaha first response "to evade the door"
Insisted that the issue of criminal responsibility does not involve Zong
If the letter is a report, Wahaha chairman Zong years personal income tax evasion as
much as 300 million yuan, will be a secret.
Since the incident came to light from tax evasion, Zong I did not face the media to
answer these questions. April 17, in the Danone Wahaha dispute the legal seminar,
and the monarch venture president, Wahaha union consultant, said Li Su is completely
"set up to trap."
Danone and Zong signed in 1996 and 2003 "service agreement"
and "incentive stock agreement", the express agreement Zong
their wages, bonuses and other benefits, "responsible for China and other
parts of any kind taxes, fees or levies. "
Li Su said, "is indeed a contract, but up to each payment, are not given
Zong worse one, and Qin Peng (up to the Chinese president) told Zong, has paid up
for him in Singapore . This led to Zong long-term view, this is not a problem, each
individual is taxed to help him up. "
Li Su also revealed that, when the Qin Peng told him to open several accounts, was
intended to avoid tax. According to Li Su's statement, Danone Wahaha was
still in the honeymoon period of cooperation, the two sides so a verbal agreement,
Zong no tax is normal.
Later, after both sides made public contradiction, Zong said in an open letter, he is the
cheapest CEO, monthly income of only 3,000 euros, 10 million euros in annual
subsidies, plus 1% of the joint venture's annual profit bonus. Danone group
was set up to investigate tax evasion, and let it be told Zong three crimes: the loss of
state assets, commercial bribery and income tax evasion, so that Zong "in
the rest of his life in litigation."
In accordance with the Lisu say, Zong subsequently discovered through
self-examination and did not really pay personal income tax, so in October more than
200 million owed in arrears, the tax departments for time in the eve.
But Danone's China by Qin Peng, president of Danone spokesman told
reporters, Qin Peng, whether I was up to party, have never told Zong Council on
behalf of its tax.
In which the first part of the foreign income, there is a match because of Zong and
Wahaha has reached the marriage can be reached through foreign subsidiaries
repurchase shares of the way, paid him 100 million dollars.
This part of how revenues should be qualitative, Danone count of commercial bribery;
up to intentionally trap or not to declare Zong informed, deliberate tax evasion; last
August Report, October Zong on the back taxes because Flag before tax, or indeed as
Mr Zong said he did not know this newspaper of the tax prosecution; Zong after tax
premium structure does not constitute a crime? These issues became the focus of tax
evasion cases.
How rational face disputes, Dacheng Law Firm Partner of the Qing Qian Wei said,
according to the current legal system, still can provide a relief to both channels, rather
than emotional problems. It is reported that Danone Wahaha litigation each year,
Danone in the U.S., Stockholm, France, Italy, Beijing, Xinjiang and other places
several Wahaha and Zong for his wife and daughter from the litigation, also against
the Danone Wahaha litigation. The two sides trademark, trade competition in the
proceedings, judgments or arbitration results have are up to lose.
Wahaha agent, Dacheng Law Firm Partner Lvliang Biao said that tax evasion does not
constitute a pressure problem on Zong does not constitute a criminal issue, the
conclusion very soon.
As a lawyer and consultant, Li Su, Lv Liangbiao view all hope of reconciliation, but
Zong has proposed talks on the premise that up to their mistake, not everywhere
reported, Danone is clearly not acceptable. "The current situation, as the
direct take legal proceedings, directly liquidate its assets." Lvliang Biao

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