China Fund News Taylor
Hello everyone, recently, the tax issues of the listed company Bohui Shares have attracted attention. Let’s take a look at what happened.
pay nearly 500 million yuan in consumption tax?
Bohui Co., Ltd. announced the discontinuation of production
. This is what happened.
html On the evening of June 13, the A-share listed company Bohui Co., Ltd. announced that based on the company’s current operating capital difficulties, the company will start from June 12, 2024, a 400,000 tons/year aromatic hydrocarbons extraction unit and a 400,000 tons/year environmentally friendly aromatics The oil production equipment and related supporting equipment will be suspended.announced that company's main business income source is the product produced by the above-mentioned device. This suspension of production will have an adverse impact on the company's operating income, cash flow and operating profit . In view of the fact that it is currently impossible to determine the specific time for the resumption of production of the above-mentioned devices, the impact of this suspension of production on the company's performance cannot be predicted for the time being.
In addition, the company also stated that in order to control operating costs, the company will take various cost-saving measures, including but not limited to gradually arranging employee holidays, salary reductions, layoffs, etc., in an effort to maintain daily operating activities.
As soon as the announcement came out, on June 14, the share price of Bohui Shares plummeted by nearly 20%.
Behind the incident is the adjustment of tax policies. Bohui shares responded that if "heavy aromatics derivatives" are adjusted to pay consumption tax as "heavy aromatics", the tax burden will be about 2,152 yuan/ton.
In March this year, Bohui Shares issued an announcement, which showed that recently, the company received the "Tax Matters Notice" from the Pupu Taxation Office of the Ningbo Zhenhai District Taxation Bureau of the State Administration of Taxation, requiring the company to "heavy aromatics derivatives" "Paying consumption tax on "heavy aromatics" will have a significant adverse impact on the company's production of heavy aromatics derivatives equipment. A total of 140,372 tons of heavy aromatic hydrocarbon derivatives produced by this device will be sold from July to December 2023, and a total of 85,000 tons will be sold from January to March 2024 (estimated). If pays consumption tax on heavy aromatics as required by the tax notice, the impact on the company's annual profit in 2023 and the profit in the first quarter of 2024 will be approximately 300 million yuan and 200 million yuan respectively. will have an impact on the company's 2023 annual performance and future years. Production and operations will have significant adverse impacts. In 2023, the company's performance will turn from profit to large loss.
This may mean that the company will be required to pay nearly 500 million yuan in back taxes.
This change in tax policy is related to an announcement issued by the relevant departments last year.
The State Administration of Taxation issued the "Announcement on the Implementation Standards of Consumption Tax Policies for Certain Refined Oils" on June 30, 2023, which mentioned that "petroleum ether, crude white oil, light white oil, and some industrial white oils (No. 5, No. 7, No. 10, No. 15, No. 22, No. 32, No. 46) are levied consumption tax on mixed aromatics, heavy aromatics , mixed carbon eight, stable light hydrocarbons, light oil, and light coal tar. Consumption tax will be levied in accordance with naphtha . "This announcement will be implemented from the date of issuance. There will be no tax adjustments for the oil products listed in this announcement that have occurred before the announcement."
Bohui Shares said. Since July 2020, the company has begun to transform the aromatics extraction device. The product has been upgraded from heavy aromatics to the heavy aromatics derivative , and has maintained communication with the competent tax authorities on product upgrades, production status, product changes and other matters. , and in September 2023, it officially submitted written documents for upgrading the registration information such as heavy aromatic derivatives product testing and identification reports to the competent tax authorities, and at the same time reported the company's official sales invoicing. The competent tax authorities also conducted separate sampling and testing of the company's heavy aromatic hydrocarbon derivatives products and did not raise any objection. Moreover, according to the provisions of my country's Interim Regulations on Consumption Tax and the "Implementation Rules of the Interim Regulations of the People's Republic of China on Consumption Tax", consumption tax is levied specifically according to the tax schedule, that is, the products listed in the tax schedule are taxed. Heavy aromatic hydrocarbon derivatives are not listed in all consumption tax tax schedules and this announcement No. 11; the regulations announced by the State Administration of Taxation mention heavy aromatic hydrocarbons and heavy aromatic hydrocarbon derivatives as two different products, and heavy aromatic hydrocarbon derivatives are not listed Belongs to the category of heavy aromatics. Based on the above communication situation, the company will normally carry out production and operation activities such as sales and invoicing after completing product adjustments and filings.
html On April 15, Bohui Co., Ltd. mentioned in its reply letter to the Shenzhen Stock Exchange that the heavy aromatic hydrocarbon products produced by the company before July 2023 were dark brown and black solid at room temperature and pressure, regardless of the production process and product attributes. , main components, or physical state under normal temperature and pressure conditions, etc., it is obviously different from refined oil and does not fall within the scope of refined oil consumption tax.In addition, the heavy aromatic hydrocarbon derivatives produced by the company are not included in the list. They are dark brown and black solids under normal temperature and pressure, and their production processes, product attributes, main ingredients, or physical states under normal temperature and pressure conditions, etc. Various indicators are significantly different from the naphtha stipulated in the "Explanation on the Scope of Collection of Refined Oil Consumption Tax". Heavy aromatic hydrocarbon derivatives should not fall within the scope of consumption tax.
Bohui Shares believes that the heavy aromatics produced and sold by the company before July 2023 and the heavy aromatic derivatives produced after July are not required to declare and pay consumption tax.
According to the announcement, Bohui's "heavy aromatics derivatives" and "heavy aromatics" product revenue accounted for 74.76% and 75.70% in 2023 and the first quarter of 2024 respectively.
At this point, Taylor will summarize the ins and outs of the matter for everyone:
In 2023, new regulations were issued that heavy aromatics will be levied with consumption tax, but it is not clear whether heavy aromatic derivatives will also be levied with consumption tax.
So last year, the listed company Bohui Co., Ltd. immediately improved its production line and upgraded heavy aromatics to heavy aromatics derivatives, thinking that this might be able to avoid this tax.
Until March this year, companies were required to levy consumption tax on "heavy aromatics derivatives" produced and sold after July 2023 as heavy aromatics.
An investor record form of Bohui Shares shows that if this is implemented, the tax rate for heavy aromatics will be 2,105 yuan/ton.
Ningbo Zhenhai District Taxation Bureau responded
In response to this matter, on June 14, the State Administration of Taxation, Ningbo Zhenhai District Taxation Bureau issued a notice on the tax-related situation of Ningbo Bohui Chemical Technology Co., Ltd.: According to tax risk screening In this situation, our bureau discovered that Ningbo Bohui Chemical Technology Co., Ltd. has the risk of underpayment of consumption tax. After comprehensive research and judgment, it sent a risk reminder sheet to the company on November 6, 2023, and conducted multiple taxation counseling and interviews. In the absence of enterprises actively cooperating to eliminate tax-related risks, our bureau issued a "Tax Matters Notice" to them in accordance with relevant policies and regulations on March 27, 2024, requiring enterprises to pay relevant taxable products in accordance with laws and regulations. taxes. So far, and companies have not paid. In the next step, our bureau will further strengthen communication with enterprises, continue to seek cooperation from enterprises, provide in-depth policy guidance, and handle matters in accordance with laws and regulations.
In addition, since this year, many A-share listed companies have announced the issue of tax repayment.
Zhijiang Liquor, the former holding subsidiary of listed company VV Food and Beverage Co., Ltd., was required to pay back 85 million yuan in consumption tax. The time involved was from January 1994 to October 2009, which was 30 years ago at the earliest, which attracted the attention of all parties. . In addition, Yixintang, Shunhao Co., Ltd., Peking University Pharmaceuticals, Hualin Securities, and Lianjian Optoelectronics have issued announcements related to back payment of taxes.
