The State Administration of Taxation has attached great importance to the tax related issues in the recent online reflection of "Yin-Yang contract" signed by film and television practitioners, and has instructed Jiangsu and other local tax authorities to carry out investigation and verification according to law. Any violation of tax laws and regulations will be dealt with strictly according to law. So, what is the legal effect of the yin-yang contract? I will explain it in detail for you.
Recently, the continuous fermentation exposed that the film and television actors paid 60 million yuan per day for four days, and started to suspect the potential tax evasion events such as large and small contracts, yin-yang contracts, etc. The involvement of tax authorities in the investigation means that this entertainment event with personal color has evolved into a legal event related to the public interest. Find legal net to sort out the definition, legal effect, legal restrictions and other relevant contents of the yin-yang contract for you.
（1） Definition of yin yang contract
The so-called "Yin-Yang contract" refers to two or more contracts with different contents concluded by the parties to the contract on the same matter, one for the internal and one for the external. One for the external is not the true intention of both parties, but for the purpose of evading national taxes, etc.; the other for the internal is the true intention of both parties, which can be written or oral.
（2） The legal effect of yin yang contract
1. Generally, the "yang contract" in the "Yin-Yang contract" does not take effect because it does not reflect the true meaning of the parties, while the "Yin contract" is recognized as an effective contract because it is the true meaning of the parties. As long as the content of the "Yin contract" is legal, it is also protected by law. However, if the "Yin-Yang contract" is used to carry out illegal acts, or to cover up the purpose of the illegal act in a legal form, then not only the disguised "yang contract" is invalid, but also the disguised "Yin contract" is invalid due to the illegal content. Therefore, we should be careful about the "Yin-Yang contract".
2. In practice, in view of the fact that the buyer and the seller sign the "Yin-Yang contract" in serious violation of China's tax administration regulations, if it is a general tax evasion, the administrative organ has the right to impose administrative penalties such as fine and detention; if the amount of tax evasion is large and the number of times is large, it may constitute a crime.
（3） The legal restriction of the yin yang contract
As for a transaction, the law adjusts from two aspects: on the one hand, it restricts it from the perspective of protecting social public order and good customs; on the other hand, it encourages all parties to trade according to their true intentions without violating social public order and good customs. Finally, based on the real contract, there are two opposite norms in the effectiveness of the yin-yang contract
1. In order to protect the national and social public interests, the contract that maliciously colludes to damage the national interests is invalid, that is, all contracts are invalid.
2. In order to facilitate the transaction, even if the price terms in the spot sale contract are invalid, other terms that do not conflict with the real contract are still valid, that is, partial invalidity.
The court's determination of the effectiveness of the yin-yang contract is based on the facts of the case, and one of the two articles is finally determined. Either all the contracts are invalid, or only the tax avoidance price clauses are invalid. Other clauses are still valid.
According to relevant laws and regulations, in practice, in view of the serious violation of China's tax management regulations by the buyer and the seller signing the 'yin-yang contract', after the relevant departments have verified, if it is a general tax evasion, the administrative organ has the right to impose administrative penalties such as fine and detention; if the amount of tax evasion is large and the number of times is large, it may constitute a crime.