By Victor Tu

Some people think tax fraud in China is not a big issue and others think quite the reverse. So what are the potential penalties for the tax fraud? We will take a closer look at it today.

We list the possible results based on the degree of the punishment.

1. Less than RMB 2,000 or RMB 2,000- RMB 5,000 based on the Materiality

l  The tax withholder fails to keep the withholding documents

2. Less than RMB 2,000 or RMB 2,000- RMB 10,000 based on the Materiality

l  Fail to register the tax code

l  Keeping the accounting documents

l  Fail to report the accounting systems

l  Fail to report its all bank accounts

l  Fail to install the tax monitoring device

l  Fail to file the tax returns on time

3. RMB 2,000- RMB 10,000 or RMB10, 000- RMB50, 000 based on the Materiality

l  Forge ,destroy or sell the tax certificate

4. Less than RMB 10,000 or RMB10, 000- RMB50, 000 based on the Materiality

l  Hide or refuse the tax audit

5. RMB10, 000- RMB50, 000 or the criminal sue based on the Materiality

l  Manufacturing the fake invoice

6. RMB 100,000- RMB 500,000 for the organization and RMB 1,000- RMB 10,000 for individual

l  The organization (i.e. Banks, Financial Institution) works with the taxpayer to reject the tax audit or help the taxpayer conceal the assets

7. 50% to 300% fine on the tax due

l  The tax withholder fails to withhold the tax on behalf of the tax bureau

8. 50% to 500% fine on the tax due for the tax evasion or sued for criminal

l  Forge , hide or destroy the accounting vouchers

l  Provide fake financial statements

l  Fail to file the tax returns on time and do not pay the tax due

l  The tax withholder does the same above things

9. 100% to 500% fine on the tax due for the tax evasion or sued for criminal

l  Cheat on the Tax refund (VAT, Consumption tax etc.)

l  Do not pay the tax by violence

In most tax fraud cases, the taxpayers will have to pay the tax due, interest (18% per year) and 50%-500% penalties on the tax due. Of course, in some extreme situations, the person who committed the tax criminal would be imprisoned.

Keywords: Ningbo accounting, Ningbo Auditor, Ningbo accountants, Ningbo CPA

关键词：宁波会计，宁波审计，宁波会计师，宁波涉外会计，宁波注册会计师

Victor & Truman，CPAs  宁波纬度会计师事务所（普通合伙）