The tax storm hit, 14 pharmaceutical companies were notified

 Recently, the State Administration of Taxation released information on major tax violation cases from October to November 2021
.
According to statistics, at least 14 pharmaceutical/device companies have been notified due to suspected tax issues
.
Judging from the amount involved, the tax evasion amounted to 18.
6645 million yuan, and the fine was 9.
2639 million yuan
.
Among the 14 notified companies, there are 10, 2, and 2 pharmaceutical wholesale companies, medical device companies, pharmaceutical technology and pharmaceutical information service consulting companies, respectively
.
Geographically, there are 1 in Chongqing, 4 in Hainan, 4 in Guangdong, and 5 in Jiangsu
.
Judging from the amount involved, the highest tax evasion amounted to 18.
6645 million yuan and a fine of 9.
2639 million yuan; in addition, there were 4 pharmaceutical companies with tax evasion of more than one million yuan
.
Judging from the nature of the case, this violation mainly focused on "falsely issuing special VAT invoices", and 7 pharmaceutical companies violated the rules
.
And 6 cases with serious circumstances were directly transferred to judicial organs by the tax bureau
.
The problem of inflated drug prices has been around for a long time
.
It is understood that as early as 2019, the Ministry of Finance, together with the National Medical Insurance Bureau, conducted a "penetrating audit" of 77 pharmaceutical companies.
The audit content mainly focused on the cost structure of pharmaceutical products, and found out the reasons for the inflated drug prices.
Violations such as gold sales and drug price gouging
.
According to the results announced in April 2021, 19 pharmaceutical companies have been "highly punished"
.
The pharmaceutical industry has always been a high-incidence industry with tax violations
.
With the implementation of the "two-invoice system" and the phenomenon of "high opening and high return", tax violations such as false invoices are increasing
.
According to the industry, this year's audit storm is not only a direct blow to pharmaceutical companies' sales with gold, but also a decision-making basis for policies such as centralized procurement.
It also shows the country's determination to strictly investigate the taxation of the pharmaceutical industry
.
If a company wants to go far, compliance is fundamental
.
What is pharmaceutical compliance? In short, compliance with regulations, rules, routines
.
Pharmaceutical marketing compliance refers to the overall compliance of pharmaceuticals in the entire process of circulation, sales, promotion, prescription use, and fiscal and taxation processing
.
Today, the general trend of compliance in the pharmaceutical industry has arrived, and tax standardization is imminent
.
Faced with increasingly stringent tax regulations, pharmaceutical companies should establish a compliant tax system
.
The industry suggests that companies need to establish a comprehensive tax compliance system
.
In addition, it is necessary to have an effective operating mechanism, such as formulating a tax compliance code of conduct that all employees generally abide by, and a compliance risk identification and early warning mechanism
.
From a specific point of view, enterprises should improve the degree of tax informatization, establish and improve the invoice risk management database; standardize the review and management of invoices and various vouchers; explore the contract sales model and strengthen the CSO compliance review; establish a risk isolation mechanism to leverage Tax law professionals, professional tax preparation institutions; attach great importance to tax audit procedures,
etc.
In short, under the tax storm, compliance of pharmaceutical companies will be a long-term solution, and pharmaceutical companies should pay attention to it
.