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MOF releases accounting quality inspection results

The Ministry of Finance inspected a total of 18,553 enterprises and public institutions and 969 accounting firms in 2010. Various levels of finance departments found 47.1 billion yuan associated with irregularities and problems and, recovered tax payment of 644 million yuan. As a result, finance departments imposed a 35 million fine to units involved and given penalty of fine or revoking accounting practice certificates to 62 directly responsible personnel and, made suggestions on replacing accounting heads to certain units.

 

Limitation on investing in securities appraisal institutions lifted

According to a circular issued jointly by the Ministry of Finance and the China Securities Regulatory Commission, for securities appraisal institutions approved to enter into the parent-subsidiary structure pilot, the parent institution is allowed to invest in the subsidiary institution. Shareholders of the subsidiary are classified into legal person shareholders and natural person shareholders. The legal person shareholders are exempted from the limit of legal person shareholders who hold no less than 50 percent stake of the institution should practice in the institution for three consecutive years or longer, while the natural person shareholders who hold no less than the rest 50 percent stake (excluding legal person stake) of the institution should practice in the institution for three consecutive years. The parent and the subsidiary should submit relevant annual registration and major events registration documents separately.

 

CAS seeks comments on appraisal standards

The China Appraisal Society is soliciting comments on its newly issued drafts of appraisal standards. They include Asset Appraisal Standard – Business Value, Asset Appraisal Standard – Forest Asset, Guidance on Appraisal of Brand, Guidance on Appraisal of Real Option and Revision of Signature Provisions in Appraisal Report Standard and Other Standards.

 

Tax burden over small enterprises eased

The State Council formulated various finance and taxation policies to support the development of China’s small enterprises. For example, extending the tax preferential policy of halving their business income tax for small and barely profitable enterprises to the end of 2015 and expanding the application scope, allowing qualified small enterprises to enjoy import tax preferential policy, exempting banks’ stamp tax on loan contracts with small enterprises for three years, extending the policy of allowing financial institutions to claim deductible loss reserve on loans with small- and medium-sized enterprises to the end of 2013 and extending the policy of allowing qualified rural financial institutions to pay their business tax with a preferential rate of 3 percent to the end of 2015.

 

Oil and gas to pay more resource tax from 1 Nov

The State Council adjusted the resource tax calculation method and tax rate for oil and gas resources, and the resource tax standard for coal and rare earth.

 

Business tax issues relevant to restructure clarified

The State Administration of Taxation issued an announcement clarifying the business tax issues associated with business restructures. According to the announcement, in the process of business restructure, if a taxpayer transfer all or part of its real assets and credits, debts and workforces associated with these assets to other businesses and individuals through combination, spin-off, sale and exchange, for real estates and land-use rights involved, this transaction is not subject to business tax. The announcement is taking effective from 1 October 2011.

 

Note:

“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the  people can acknowledge the developments quickly. From its launching, thousands of people read it every week.
In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007. If there are any problems, please contact with qiaobocao@snai.edu.

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