Expert Interpretation in November 2019

Dealing with Matters Related to Voluntary Disclosure of Tax-related Irregularities

Object
Import and export enterprises, Customs broker.

Conditions
1.Import and export enterprises and customs broker shall submit written reports to the customs before the customs find them.
2.The disclosure of the contents of the violation of customs regulations affecting the collection of taxes.

Acceptance Department and Materials
The customs of the place where the original tax was collected or the customs of the place where the enterprises is located. “Active Disclosure Report Form” (see Annex to this Announcement for details) Disclosure of relevant account books, documents and other information.

Definition of Active Disclosure
If import and export enterprises and units voluntarily report to the customs in writing their acts in violation of the customs supervision regulations and accept the customs treatment, the customs may determine that the relevant enterprises and units voluntarily disclosure them.

Not an Active Disclosure
Before the report, the customs has mastered the illegal clues; Before the report, the customs has notified the inspected person to carry out the inspection; The contents of the report are seriously untrue or conceal other illegal acts.

Punishment Analysis
The most favorable policyNo administrative Penalty Cases of procedural violations Violations by parties- Not involve tax version- Trade Control Without Import and Export License- Does not belong to prohibited goods

Only those who fail to declare or go through customs formalities according to regulations and report to the customs voluntarily afterwards and can correct them in time may not be subject to administrative punishment. 

  The most favorable policy-       Mitigating administrative punishment   Cases with minor tax evasion - The proportion of tax evaded is low, and the amount of tax evaded by enterprises is low.- The proportion of possible overpayments affecting the administration of export tax rebates is relatively low, and the amount of possible overpayments is relatively low.
The most central policy-  Mitigating administrative punishment Cases with minor tax evasion - In case of violation of customs regulations and punishment based on the value of goods, a fine of less than 5% of the value of goods shall be imposed.- In case of violation of customs supervision regulations and penalty based on tax evasion, a fine of less than 30% of tax evasion shall be imposed.- In case of violation of customs supervision regulations and punishment based on the declaration price, which affects the administration of export tax rebates of the state, a fine of less than 30% of the possible tax rebates shall be imposed.  
Enterprises credit rating The situation that does not affect the credit status of the enterprise The act of voluntarily disclosing and being given a warning or a fine of less than 500,000yuan by customs.In case of voluntary disclosure of tax-related violations, the customs will not suspend the application of corresponding management measures to enterprises during the investigation period.

In order to further guide import and export enterprises and units to conduct self-examination and self-correction, abide by the law and self-discipline; improve the level of cross-border trade facilitation, and continuously improve the business environment, Shanghai Customs has announced the departments and contact information that accept the report of voluntary disclosure of tax-related violations, which can be downloaded by clicking on the link (https://shanghai.customs.gov.cn/shanghai_ customs/423405/423461/423463/26856 / 6/index.html)

Department and Contact Methods of Shanghai Customs Receiving Reports of Voluntary Disclosure of Tax-related Violations (Part)
No. Affiliated Customs Area Receiving Department Contact Information (Address)
 1 Pudong Airport Customs (2216) Airport Operations Division Office 311,Customs Inspection Building, 1368 Wenju Road, Pudong New Area
Pudong Airport Customs (2244) Express Mail Supervision Integrated Business Division 3 1st Floor, Area A, Customs Clearance Service Center, No.1333 Wenju Road, Pudong New Area.
Pudong Airport Customs (2233) Integrated Business Division 1 3rd Floor, Area B, Customs Clearance Service Center, No.1333 Wenju Road, Pudong New Area.
2 Pudong Customs (formerly Pudong Customs) Integrated Business 1 Window No.14 of Customs Hall, No.153, Lujiazui West Road
Pudong Customs (South Section of Jinqiao Export Processing Zone) Integrated Business 3 1st Floor, No.380, Chengnan Road, Huinan Town, Pudong New Area
Pudong Customs (formerly Nanhui Office) Integrated Business 5 Window No.1 of Customs Declaration Hall, No.55, Konggang 7th Road, Changning District.
3 Hongqiao Airport Customs Integrated Business Division Window No.1 of Customs Declaration Hall, No.55, Konggang 7th Road, Changning District
4 Pujiang Customs Integrated Business 2 Customs Declaration Hall, 1st Floor, International Shipping Service Building, 18 Yangshupu Road, Hongkou District.
5 Waigaoqiao Port Customs Integrated Business 1 Customs Declaration Hall, 1st Floor, No.889, Gangjiao Road, Pudong New Area
6 Baoshan Customs Integrated Business Customs Declaration Hall, 2nd Floor, No.800 Baoyang Road, Baoshan District
7 Yangshan Customs Integrated Business 1 2nd Floor, Block F, Deep Water Port Business Plaza, No.7 Shuntong Road, Pudong New Area
Integrated Business 1 2nd Floor, Block F, Deep Water Port Business Plaza, No.7 Shuntong Road, Pudong New Area
Integrated Business 1 No.188, Yesheng Road, Pudong New Area

Post time: Dec-30-2019