Tax refund: In June 2016, tax refund of approximately RMB700,000 for the past three years was deposited into the client’s bank account.

- Welcome to our company to inspect the duly tax-exemption approvals issued by the competent tax authority and the customer’s tax-refund certificates!

(1) Customer background

Company Name: QBB Trade (Shenzhen) Co., Ltd.
Headquarters : Located in Canada, the primary business is sales of lighting products in European and American markets.
Divisions: Quality, Procurement, Order and Administration&Finance
Operating business: Primarily procuring the lamps and peripheral products in domestic for its headquarters.
Original service provider: The original finance and tax service provider has many years of cooperation with Shenzhen branch, and has established a solid trust relationship with its headquarters.

(2) Customer’s demand

1. Quick refund of tax payment for the past three years
The headquarters decided to transfer Shenzhen branch into a representative office, therefore, the management wanted to receive the full tax amount as soon as possible, speeding up the Cancellation of Shenzhen branch and successful transformation.
2. Solution on preferential tax in compliance with laws and regulations
The headquarters wanted to enjoy the preferential tax in compliance with laws and regulations.
3. Assistance in communication with headquarters
CFO of Shenzhen branch needed BMI to assist in reporting to its headquarters and writing some related emails in English or Chinese, in order to facilitate the communication with the headquarters’ management.
4. One-stop service
The management decided to reduce cooperation with the original partner, and hoped that BMI can provide other finance and tax service, such as financial auditing, tax auditing, and tax refund applied for the transformed representative office.

(3) Risk Analysis

1. The business transition happened in 2014 reduced part of businesses, dissolved some divisions, so some data and  information were hard to review;
2. The completeness of the relevant information about cross-border service business;
3. Shenzhen branch ceased operation starting from June 2015, due to transformation;
4. The service contract concluded between the overseas companies had vague statement without the relevant documents.

1. Assessment of the feasibility to enjoy preferential tax
BMICS had a deep understanding of its actual operation through on-site research. Prior to and after business transformation, there were some increases and decrease, but the services provided by the company all fell within the scope of business processing management, which met the business condition to enjoy tax exemption for cross-border service. Although the company currently ceased operation, the previous business were complied with the tax exemption condition, so there was no obstacle to enjoy the preferential tax policy.

2. Getting decision support from the management in Canada
BMICS assisted Canada headquarters in understanding the legality and compliance of preferential tax solution. Based on the business essence, some amendments were made on the service contract to supplement the tax-related terms.

3. Full implementation and promotion of preferential tax
BMICS was responsible for answering any question raised by various departments of national and local tax bureau, providing the relevant information detailing business operation of this company and legal basis and judgement criteria for enjoying preferential tax, following through all handling suggestions given by the bureaus at city and district levels and all departments as well as the handling officer, to make headway.

4. To understand and respect client’s demand
Considering the internal system, BMI’s service concept and the solution as a whole, BMICS agreed to assist CFO in communicating with and reporting to the management in headquarters, making the client save worry and feel at ease.

5. Value-added services
Based on the client’s demand, BMICS provided the client with one-stop service covering auditing and translation , and also provided the client with preferential program such as refund of commission charge for individual income tax and implemented such program.

5. Customer Evaluation