In October 29th, the Ministry of Finance issued the 2018 accounting information quality inspection notice. According to the announcement, during the 2017 accounting law enforcement inspection, it was found that the Internet industry was characterized by light assets operation, intertwined equity and creditors rights investment, separation of management structure and legal entity, and no territorial restrictions on business operations. Some enterprises had more prominent problems such as cross-border transfer of profits and tax evasion.
At the same time, the announcement also announced the accounting supervision and inspection of the Ministry of Finance in 2017. The announcement involves many enterprises dealing with punishment and rectification, including Millet Communications, Le Video Network, etc. The existing problems include part of the expenses amortization accounting errors, subsidiary annual report related party transactions disclosure is not comprehensive, etc.
The Office of Financial Supervision Commissioner of the Ministry of Finance in Jilin Province inspected the quality of accounting information of Millet Communication Technology Co., Ltd. in 2016. It is found that the company has some problems such as incorrect calculation of amortization of expenses, failure to declare and pay taxes on goods donated as sales acts, irregular management of reimbursement invoices, and imperfect management system of expenses.
In view of the problems found in the inspection, the Office of the Financial Inspector of the Ministry of Finance in Jilin Province issued a decision to deal with them according to law.
The Office of Finance Supervision Commissioner of the Ministry of Finance in Zhejiang Province inspected the quality of accounting information of Suning Yishou Group Co., Ltd. (formerly Suning Yunshang Group Co., Ltd.) in 2016. It was found that the company had some problems, such as the transfer of assets did not carry forward the deferred earnings of 5.3189 million yuan at the same time, the impact of the income generated by the lack of full disclosure of the after-sale rent-back items on the current profit, and the additional deduction of 3.4228 million yuan for the duplicate declaration of R&D expenses.
The Office of Finance Supervision Commissioner of the Ministry of Finance in Shandong Province inspected the quality of accounting information in 2016 of LEVIN Information Technology (Beijing) Co., Ltd. Inspection found that the company and its subsidiaries have assets impairment reserve unregistered; subsidiary annual report related party transactions disclosure is not comprehensive; 2016 expenditure in the previous year. In addition, the company and its subsidiaries still have some problems, such as the use of loans not in accordance with the contractual purpose of borrowing, the overdraft of VAT invoices, the inadequacy of the subsidiarys paid-in capital.
In 2017, the Ministry of Finances accounting supervision and examination showed that Hainan Hainan Haihang Infrastructure Investment Group Co., Ltd. had some problems in 2015 and 2016, such as less revenue, less cost, less tax payment and so on. The company has made corrections according to the requirements.
It is understood that in this circular other related to the punishment and rectification of the implementation of Luan also includes environmental energy, Xishan Coal and Electricity, Yangquan Coal Industry, a total of 27 enterprises.
Yesterday, in response to some media reports, millet, Suning, Neville Technologies and other companies have issued a clarified response that there is no subjective evasion of taxes, related issues have been rectified.