Recent multinational pharmaceutical giant GlaxoSmithKline Co in China bribery case by the public security organs of detection, GlaxoSmithKline (China) investment company limited by a small travel agency, to the conference fees in the form of capital of a huge sum of bribery, and discovered this is a lot of Multi-National Corporation common means.
"Enterprise income tax deduction approach" (Guo Shui Fa (2000) No. 84) fifty-second requirements: "the conference fees proof materials should include: the meeting time, location, attendance, content, purpose, standard cost, payment vouchers etc.." Because in 2008 the "PRC Enterprise Income Tax Law" after the implementation of the file failure, therefore can apply to the file caused controversy in tax inspection. The author believes that, even if the file has expired, but the tax personnel still can refer to the spirit, because the enterprise has the obligation to confirm the meeting fee is true.
Guoshuifa [2000] 84 document requests the conference fees shall provide materials to prove this expenditure is the real conference fees instead of business entertainment expenses. The conference fees can deduct the full, and hospitality business can only limit for deductions, so enterprises will hospitality business into the conference fees invoices, in order to achieve the purpose of increasing the pre tax deduction. The author in the tax assessment had found some every month the company had both conference fees, finally enterprises admit this is reception headquarters to Beijing staff business entertainment expenses.
So, the tax personnel should be how to judge the conference fees are true or not, only according to Guoshuifa [2000] 84 document requests to provide the materials is not enough, because the meeting time, location, attendance can be forged, the author thinks, should also ask the enterprise to provide a meeting place and signed contract, meeting materials, meeting minutes etc.. I have seen in some cases, audio and video data of some tax authorities require the enterprise to provide the meeting, to further confirm the authenticity of the meeting.
