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Recently, a listed chemical company caught up in a tax and fee storm had to choose to suspend production to protect itself, causing an uproar in public opinion.

According to media reports, on August 11, Bohui Co., Ltd. announced that the company had declared consumption tax of 428.1533 million yuan and additional taxes and fees of 51.3784 million yuan on August 9, 2024, totaling 479.5317 million yuan, in accordance with the current tax policy, and will arrange payment as soon as possible in the near future. On the same day, the company disclosed the "Announcement on the Suspension of Production of the Company" on June 13, 2024, and stopped production of the 400,000 tons/year aromatics extraction unit, the 400,000 tons/year environmentally friendly aromatics oil production unit and related supporting units from June 12, 2024. At present, the company is actively carrying out preliminary preparations for full resumption of work and production. The company will strive to resume work and production before the end of August based on the progress of subsequent work.

• What is going on?

Previously, Ningbo Bohui Chemical was required to pay up to 300 million yuan in consumption tax for the production of "heavy aromatic derivatives", and was facing the dilemma of turning from profit to loss.

It is worth noting that this is a listed company in Ningbo. Ningbo Bohui Chemical Technology Co., Ltd. (hereinafter referred to as Bohui Company) was required by the Ningbo Zhenhai District Taxation Bureau to pay back the consumption tax. On June 13, Bohui Company issued a production suspension announcement. The company stopped production of the 400,000 tons/year aromatics extraction unit, the 400,000 tons/year environmentally friendly aromatic oil production unit and related supporting units from June 12.

On June 14, the Ningbo Zhenhai District Taxation Bureau responded to the matter and made it clear that it would communicate closely with the company, provide in-depth policy guidance, and handle the matter in accordance with the law.

On June 15, the Beijing News published an editorial titled "Tax inspections should be based on the premise of not affecting corporate production and operations."

It is mentioned that the reason behind this is very simple: enterprises are the creators of social wealth and the providers of national tax revenue. If enterprises stop production, tax revenue will lose its source of vitality. Therefore, the taxation department should adhere to the principle that tax collection and tax inspection should not affect the normal production and operation of enterprises.

The "Supreme People's Court Judges Forum" held not long ago pointed out that "no enterprise should be allowed to collapse simply because of being involved in a case." Similarly, if taxation and tax inspections put enterprises in trouble or even collapse, it is tantamount to draining the pond to catch fish, which should also be avoided. It can be said that this is also the overall perspective that local governments and tax authorities should have to ensure "stable expectations, stable growth, and stable employment."

This view once again sparked heated discussions among netizens.

Some netizens pointed out that paying taxes according to law is the obligation of every citizen. One cannot avoid paying taxes according to law just because the business is poorly managed and making losses. Taxation is mandatory and is a state act. Paying taxes according to law is a basic obligation of citizens. my country's tax revenue is taken from the people and used for the people.

Some netizens said that the law cannot give in to illegality, even for listed companies like Bohui. Tax evasion must be paid in arrears. This company is really shameful for threatening the state to collect taxes by suspending production due to losses!

One netizen compared it to a thief who stole too much money. After being caught, he said he had no money, and then he lay on the ground, yelling and screaming, attracting a crowd of onlookers, who all demanded pardon! Is this okay?

Some netizens analyzed that heavy aromatic products were originally subject to consumption tax. In the past, a policy of suspending consumption tax payment was introduced to support the industry. This company should understand that if it can not pay, what should be done with other similar products? It is a bit too much to suspend production in the name of normal annual maintenance.

Now, the tax backlog has finally been recognized and responded to by the company, which is a good thing. It shows that the company's board of directors and other relevant departments have recognized the cause of the incident and figured out the tax collection standards and requirements. It also shows that the local tax authorities are principled and flexible in handling issues in accordance with laws and regulations. The tax department did not give up communication because of the company's disapproval, nor did it lose its principles because of the company's extreme behavior.

The successful resolution of this incident has once again sounded the alarm for all companies. Paying taxes in accordance with laws and regulations is the basic responsibility and obligation of corporate citizens, which no company can cross. In the course of daily operations, companies must pay taxes in a timely manner in accordance with regulations to avoid tax risks and the embarrassment of settling accounts afterwards. It also helps managers to understand the real profit and loss of the company's operations in a timely manner, and companies must not become "legally illiterate" in terms of taxation.

What do you think about this?