(a) first rent and then sell. This method does not pay the full amount of sales tax and surcharge, only pay the deed tax, registration fee, stamp duty, etc., has a certain feasibility. However, since the price of a house is highly variable, if the price signed is not the same as the market price of the house two years later, and the price of the house has increased, it is entirely possible that the owner would rather compensate for the breach of contract than sell the house, and the buyer will have to bear the opportunity cost of many of these.
(ii) Fake gifts really sell the house. If the real meaning and purpose of the real estate transfer of both parties is not a gift, but want to transfer the property and profit, completely deviating from the gift of the legal characteristics of gratuitous. Then, this behavior will not be enough to become a legally valid gift, but outside the performance of the legal form of gift, cover up the illegal purpose of tax evasion illegal behavior. Once a dispute arises, according to the current law, the parties will have to bear the responsibility of paying back taxes, fines, and even criminal liability in serious cases.
(3) The contract price is much lower than the actual price. This method of underpayment of the full amount of sales tax and surcharges, still have to pay the deed tax, registration fees, stamp duty, etc.. This behavior is outside the performance of the legal form, cover up the illegal purpose of tax evasion, is a kind of illegal behavior. Once a dispute arises, according to the current laws of our country, both parties will have to bear the responsibility of paying back taxes, fines, and even criminal liability in serious cases.
As seen above, some of the so-called conventional tax avoidance methods are not in accordance with the provisions of the law.
Second, what are the risks of tax avoidance in second-hand houses
(a) Doing a low contract price, can avoid. Do low contract price is the second-hand market buyers and sellers of the most commonly used way to avoid tax. For example, if the actual transfer price of a house is 200,000 yuan, the buyer and the seller signed a private negotiation agreement, submitted to the real estate bureau of the transfer price is 150,000 yuan, so that the remaining 50,000 yuan of the tax generated can easily be avoided. This approach could result in the buyer paying based on the understated closing price, resulting in a loss to the owner.
(2) Rent-and-buy, deferred transaction. Both taxes set five years as the limit, and transfers over five years are exempt from sales tax. As a result, there is a situation in the market where buyers and sellers negotiate a deal by "renting first and buying later". This method because in a considerable period of time can not handle the transaction transfer, the property rights of the house is not the buyer's, if the price rises, the owner may prefer to compensate for the liquidated damages will not sell, the buyer can only re-select the housing. If a few years later the house obtained when the property prices fell, the buyer is bound to be reluctant to continue the transaction, the future buyer and seller no matter which party backtracked will produce disputes.
(3) Fake gift real sale and purchase, backdoor operation. After the promulgation of the new policy, many homeowners have been able to evade personal income tax and sales tax through fake gifts. First of all, since both parties conduct the transaction privately, once one party defaults on the contract, it is easy to cause disputes; secondly, since the gift is not a sale and purchase, and if the buyer gets the property and quality problems occur, it is not legally protected, and it is difficult to ask for compensation from the homeowner; and lastly, the gift can be withdrawn at any time prior to the transfer of real estate certificates.
(d) Fake divorce. According to the provisions of the individual transfer of personal use for more than five years, and is the family's only living room obtained income, exempt from personal income tax. In other words, the second home of both husband and wife are subject to individual income tax when transferred. Many couples avoid the tax by getting a fake divorce. Because it is a fake divorce, both parties will not give much thought to the division of property when going through the divorce procedure. Therefore, after the divorce, once one party refuses to remarry, it is difficult for the other party to defend their legitimate rights and interests.