XML 65 R18.htm IDEA: XBRL DOCUMENT
v3.20.2

Taxation | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Taxation | NOTE 11. Taxation
a) | Corporate Income Taxes
HUSN is incorporated in the BVI. Under the current law of the BVI, HUSN is not subject to tax on income or capital gains. Additionally, if dividends are paid by HUSN to its shareholders, no BVI withholding tax will be imposed. HKIFS was incorporated in Hong Kong and does not conduct any substantial operations of its own. No provision for Hongkong profits tax has been made in the financial statements as HKFS has no assessable profits for the years ended December 31, 2019 2018 and 2017 The HUSN’s PRC subsidiary, Yingxin Yijia, CIFS (Xiamen) Financial Leasing and its variable interest entities, Sheng Ying Xin and its subsidiaries being incorporated in the PRC, are governed by the income tax law of the PRC and are subject to PRC enterprise income tax (“EIT”). Effective from January 1, 2008, the EIT rate of PRC is 25%, and applies to both domestic and foreign invested enterprises. Kashgar Sheng Ying Xin, which was incorporated in Kashgar City, Xinjiang Autonomous Region in People’s Republic of China, is exempted from income tax from its inception to December 31, 2020 and is subject to a tax rate of 25% after December 31, 2020. The components of the income tax expense are as follows:
|  | Year ended December 31, 2019 |  |  | Year ended December 31, 2018 |  |  | Year ended December 31, 2017 |
Current |  | $ | 7,243 |  |  | $ | 151,153 |  |  | $ | 672,205 |
Deferred |  |  | - |  |  |  | (1,853,280 | ) |  |  | (38,890 | )
Total |  | $ | 7,243 |  |  | $ | (1,702,127 | ) |  | $ | 633,315 |
Reconciliation of the income tax expenses at the PRC statutory EIT rate of 25% for the years ended December 31, 2019, 2018 and 2017 and the Company’s effective income tax expenses is as follows:
|  | Year ended December 31, 2019 |  |  | Year ended December 31, 2018 |  |  | Year ended December 31, 2017 |
(Loss)profit before income taxes |  | $ | (61,988,515 | ) |  | $ | (5,520,864 | ) |  | $ | 24,681,499 |
PRC statutory EIT rate |  |  | 25 | % |  |  | 25 | % |  |  | 25 | %
Income tax (benefit) expenses computed at statutory EIT rate |  |  | (15,497,129 | ) |  |  | (1,380,216 | ) |  |  | 6,170,375 |
Reconciling items: |  |  |  |  |  |  |  |  |  |  |  |
Valuation allowance |  |  | 1,798,398 |  |  |  | - |  |  |  | 2,505 |
Effect of tax holidays |  |  | 93,455 |  |  |  | (2,209,107 | ) |  |  | (5,617,858 | )
Temporary difference |  |  | 13,369,701 |  |  |  | 1,586,726 |  |  |  | - |
Permanent difference |  |  | 242,818 |  |  |  | 300,470 |  |  |  | 78,293 |
Income tax (benefit) expense |  |  | 7,243 |  |  | $ | (1,702,127 | ) |  |  | 633,315 |
b) | Deferred Taxes
Deferred income tax was measured using the enacted income tax rates for the periods in which they are expected to be reversed. Significant components of the Company’s deferred income tax assets and liabilities consist of follows:
|  | As of December 31, 2019 |  |  | As of December 31, 2018 |
Deferred income tax assets |  |  | 1,798,398 |  |  |  | - |
Net operating loss carry forwards |  | $ | - |  |  | $ | 1,798,398 |
Total Deferred income tax assets |  |  | - |  |  |  | 1,798,398 |
Less: Valuation allowance |  |  | (1,798,398 | ) |  |  | - |
Net deferred income tax assets |  | $ | - |  |  | $ | 1,798,398 |
|  |  | As of December 31, 2019 |  |  |  | As of December 31, 2018 |
Deferred income tax liabilities |  |  |  |  |  |  |  |
Intangible assets from business combination |  | $ | - |  |  | $ | - |
Total deferred income tax liabilities |  | $ | - |  |  | $ | - |
The Company’s NOL was mainly from the Company’s VIE and subsidiaries’ cumulative net operating losses (“NOL”) of approximately $ 59,607,294 as of December 31, 2019. Management considers projected future losses outweighs other factors and made a full allowance of related deferred tax assets.”
c) | Taxes Payable
Yingxin Yijia, CIFS (Xiamen) Financial Leasing and its variable interest entities, Sheng Ying Xin and its subsidiaries, who provided services in China and therefore are subject to Chinese value-added tax (“VAT”). Sales revenue represents the invoiced value of services, net of the VAT. Since August 1, 2015, Sheng Ying Xin was classified as a general taxpayer with VAT of 6%. Kashgar Sheng Ying Xin is subject VAT of 4.5% (75% of general taxpayer’s rate of 6%), which is a tax holiday for enterprises established in Kashgar. Both FuhuiSZ and Anytrust are general taxpayers and subject to a 6% VAT rate. Yingda Xincheng was classified as a small-scale taxpayer and the VAT is at 3%. Furthermore, VAT payable of these four companies are subject to a 12% surtax, which includes urban maintenance and construction taxes and additional education fees. Taxes payable consisted of the following:
|  | As of December 31, 2019 |  |  | As of December 31, 2018 |
Corporate income tax payable |  | $ | 423,563 |  |  | $ | 758,136 |
Value added tax payable |  |  | 548,276 |  |  |  | 2,938 |
Other surtaxes payable |  |  | 14,356 |  |  |  | 37,925 |
Total |  | $ | 986,195 |  |  | $ | 798,999 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration