W company reimbursed piano training fees, fitness fees and other expenses for some foreign employees before income taxable. The enterprise believes that these expenses belong to the scope of training expenses and can enjoy the preferential policy of tax-free subsidies for foreign individuals. In response, the inspectors said that according to the document GSF [1997] No. 54, the reasonable cost subsidies for receiving language training in China can be exempted from tax. This tax exemption policy is mainly a tax preference for foreigners who do not speak the same language and need training, while the training expenses reimbursed by W Company obviously do not belong to this situation. In the process of voucher verification, the inspectors found that W Company reimbursed the return air tickets for the family members of foreign employees, and did not declare and pay personal income tax. Article 1 of GSH [2001] No. 336 document stipulates: "The family visit fee that can enjoy the preferential treatment of exemption from personal income tax is only limited to the fee for foreign individuals to travel between the place of employment in China and the place of residence of their families (including the residence of their spouse or parents) and not more than twice a year." According to this provision, the transportation fee of the family members of foreign employees cannot be exempted from personal income tax before tax. The inspector immediately pointed out the problem to the financial personnel of W Company. Since the ticket vouchers are all real names, W Company has nothing to say about it and agrees with the inspector's opinion.

Through the efforts of the inspectors, the Fifth Inspection Bureau of Beijing Local Taxation Bureau finally found that W Company had problems in expanding the scope of tax exemption and illegal tax payment in foreign employee subsidies such as children's education fees, family visit fees, housing subsidies, training fees, etc. According to the fact that the enterprise violated the law, the bureau issued the Notice of Order to Correct within a Time Limit, and made a decision to pay the individual income tax of more than 16 million yuan and impose a fine of 12 million yuan on the enterprise according to law.

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