1. Conversion of costs and expenses
Operation method: Convert expenditure accounting processing belonging to cost items into expenses to achieve the Purpose of pre-tax deduction for the current period, or convert expenditures belonging to cost items into expenses. Expenditure items are costed to achieve the purpose of controlling the pre-tax deduction ratio and exaggerating current profits. Reason: Because the cost is composed of direct labor, direct materials, and manufacturing overhead, and direct labor, manufacturing overhead, sales expenses, management expenses, etc. are easily mixed, it is a loophole in this operation. In addition, freight and labor handling costs included in direct materials are also easier to integrate with administrative costs.
2. Interchange of expense capital (product)
Operation method: convert the accounts belonging to expense items The transaction becomes an asset and the depreciation is deducted pre-tax. Or expenses belonging to asset accounts will be directly recognized as expenses and deducted before tax in the current period.
Reason: Some asset values themselves include expenses, so other expenses can be integrated into the asset value, and vice versa. In addition, it is easier to manually virtualize the boundaries of asset repairs, borrowing costs, etc. to confirm the boundaries themselves. In addition, the basis for the recognition of fixed assets and intangible assets is easier to virtualize.
3. Expense name conversion
Operation method: deduct part of the pre-tax expenses with rate restrictions The excess amount is converted into other expenses with looser restrictions or no restrictions and is recorded in order to achieve the purpose of full pre-tax deduction or to reduce relevant taxes and fees. Reason: Expense confirmation is based on invoices, which are easy to be fictitious.
4. Expense accrual/deferral/selective allocation
Operation method: To control the current period The size of pre-tax profits, withholding expenses to defer taxes. Or choose to defer recognition to exaggerate current profits for other purposes (such as equity transfer price, current performance).
There is also a selective allocation of costs, such as adjusting the allocation ratio of each expense item to control the taxes and fees caused by the project (such as adjusting the land value increase Tax). Reason: Same as point 3.
5. Cost nameProject conversion
Operation method: Convert items that can be carried forward as costs in the current period into other items that cannot be carried forward as costs, or vice versa.
6. Cost advance & delayed recognition/selective allocation
Operation method: close the current period Carry over more when converting to cost, or carry over less in this period and make up for it in the next period, or choose the cost allocation method to achieve the above two purposes. Reason: Cost carry forward regulations are vague.
7. Early & delayed recognition of revenue/selective apportionment
Operation method: close the current period If the transfer income is over or under carried forward, it will be made up in the next period. Or choose the income sharing method to achieve the above two purposes. Reason: Revenue recognition regulations are vague.
8. Conversion of income items
Operation method: Convert the total income between various income items Adjustment, such as changing main business income into other business income or non-operating income, to achieve the purpose of controlling turnover tax or highlighting the performance of the main business.
9. Debt the income/capitalize the expenditure
Operation method: Temporarily post the income as Other payables, or expenditures may be temporarily listed as other receivables to achieve the purpose of deferring or not paying taxes.
10. Inflated increase/decrease in revenue, costs and expenses
Operation method: Artificial inflated increase or decrease False reduction of income or costs or expenses, or false reduction of income. Provide the basis for error adjustment. To delay the tax period or for other purposes.
11. Transfer pricing
Operation method: conduct artificial price processing with external parties to achieve transfer The purpose of pricing is to lower or increase the price and make up for each other in the form of other expenses for their respective small treasury. achieve the purpose of tax avoidance.
12. Conversion of asset and liability categories
Operation method: Convert asset category names in fixed assets Change, change its depreciation life; link accounts receivable to other receivables, or link accounts receivable in advance to other payablesand other means to avoid taxes.
13. False Transaction Law
Operation method: enter the account with a non-existent transaction contract, resulting in The outflow of funds increases the expenses of the current period and achieves the purpose of reducing income tax.
14. Expenses directly charged to income method
Operation method: Because income involves turnover tax, it must be recognized in the revenue In the past, they were directly offset by expenses to achieve the purpose of controlling turnover tax. For example, if the commercial discount is turned into a reduction in selling price in the subsequent period
15. Restructuring and transfer method
Operation method : Use equity transfer, asset transfer, debt restructuring, etc. to transfer funds or income to achieve the purpose of tax avoidance. Such as transferring the company's funds to achieve bankruptcy and default on debts.
16. Corporatization of private expenses
How to operate: Convert private expenses into company expenses , that is, to achieve the purpose of reducing the amount of personal income tax payable on private income and increasing the deduction expenses before corporate income tax. For example: the company handles personal car fuel bills and personal rent bills at the company.
17. Revenue/Cost/Expense Transfer Method
Operation method: Separate contract, transfer income or Costs or expenses are transferred to other companies or individuals for the purpose of differential tax rate treatment. Or the expenses of each company can be filled and reimbursed, and the small treasury can compensate them to achieve their own balanced and limited expenses.
18. Virtual increase/decrease circulation process
Operation method: Work hard on the circulation process, more With a transfer process, the amount of income increases, and the deductible range of expenses with respective rate limits increases. Part of the expenses can be deducted, for example, if the company borrows money from the company to buy the assets for the individual, and the company leases the personal assets, the rental cost will increase invisibly. Or use entrusted collection and payment methods.
19. Using financial instruments method
Operation method: using financial instruments such as stocks, futures, and foreign exchange Enter into transactions where it is difficult to control future prices. By controlling the price at the time of transaction to a low level, it becomes the investment income of financial instruments after the transaction and avoids part of the turnover tax.
20. Group operation
Operation method: Use group operation to achieve the part approved by the state The purpose of the operation model of a group-based unified tax company. Balance the expenses of each company within the group to achieve the purpose of overall tax payment. If a software company is established within a group, there is no limit on salary deduction of RMB 1,600. Employees of other companies will be staffed in the company, and their salaries will be paid in the company, while the employees will work in other companies. And so on.
21. Others
For example: if the loan turns into a deposit from another company. Avoid taxes on interest.
