On October 30th, there were media reports yesterday. According to the “2018 Accounting Information Quality Inspection Announcement” promulgated by the Ministry of Finance, Suning Tesco has the phenomenon of tax evasion. In response, Suning officially responded that the report is seriously inconsistent with the facts. The problem is that the quality of the accounting firm’s practice found by the Ministry of Finance during the inspection is not so-called “problem such as tax evasion.”
Suning attaches great importance to the problems mentioned in the financial department’s accounting information quality inspection announcement. It has organized internal audits and has taken corrective measures for the quality of the accounting firm’s practice, and will take it as a warning.
The following is the official response of Suning Tesco:
1. The 2018 accounting information quality inspection announcement is based on the 2017 Ministry of Finance accounting supervision and inspection conducted by the Ministry of Finance. The purpose of this inspection is to discover the problems in the quality of accounting firm practice. The announcement showed that the Ministry of Finance found in the inspection that Suning’s “asset transfer did not transfer the deferred income of RMB 5,318,900 and the repeated declaration of R&D expenses plus the deduction of RMB 3,342,800”. This issue was the accounting firm discovered by the Ministry of Finance during the inspection. There are problems with the quality of practice, rather than the so-called “tax evasion and other issues.”
2. According to the newly issued “Accounting Standards for Business Enterprises – Application Guide”, the deferred income account accounts for the amount of government subsidies recognized in the “Government Subsidy” criteria that should be included in the current profit and loss in the future period. The Ministry of Finance pointed out that “the transfer of assets without the simultaneous transfer of deferred income of RMB 5,318,900” means that Suning’s accounting firm did not transfer the same deferred income when it recognized the income, and it has nothing to do with taxation. In fact, Suning has already paid the full amount of the income. The tax was paid in accordance with the law and in a timely manner.
3. Regarding the “repeated declaration of R&D expenses plus deduction of RMB 3.428 million”, the existence of the duplicate declaration problem is a mistake in accounting work, which caused Suning to miss the income tax of 400,000 yuan calculated based on the amount of RMB 3,422,800. .
4. Suning attaches great importance to the problems mentioned in the financial department’s accounting information quality inspection announcement. It has organized internal audits and has taken corrective measures for the quality of the accounting firm’s practice. It will be taken as a warning.
Paying taxes according to law is the basic social responsibility of enterprises. Since the beginning of business, in the past 28 years, paying taxes according to law and paying taxes in good faith have always been the basic principles of Suning. Suning Tesco’s 2017 annual report shows that the total tax payment for the year is about 4 billion yuan. In the future, Suning will continue to abide by this basic principle and take the initiative to assume corporate social responsibility while strictly handling the daily work of relevant departments such as accounting. But subjective tax evasion does not exist!