The tax department answered a reporter's question on The tax evasion case of Via: Concealing the live broadcast commission income and falsely declaring tax evasion

Source: Xinhua News Agency

A few days ago, the Inspection Bureau of the Hangzhou Municipal Taxation Bureau investigated and dealt with the suspected tax evasion problem of network anchor Huang Wei (net name: Wei Ya). The relevant responsible person of the bureau answered reporters' questions on the investigation and handling of the case.

1. Why did the Hangzhou Municipal Tax Department inspect Huang Wei?

A: In recent years, the tax department has always attached importance to and continued to regulate the tax order of the online live broadcasting industry. Our analysis found that some network anchors have certain tax-related risks, and timely carried out risk verification, prompting and counseling relevant network anchors to pay taxes according to law. After the analysis and assessment of tax big data, it was found that Huang Wei was suspected of major tax evasion, and after repeated reminders and supervision by the tax authorities, the rectification was still not complete, so it was filed in accordance with laws and regulations and carried out a comprehensive and in-depth tax inspection.

2. What are the illegal facts of Huang Wei?

A: Between 2019 and 2020, Huang Wei evaded taxes by concealing the commission income obtained from the live broadcast platform; through the establishment of a number of sole proprietorships and partnerships such as the Shanghai Weihe Enterprise Management Consulting Center and the Shanghai Dusu Enterprise Management Consulting Partnership, the income from labor remuneration such as commissions and pit fees obtained by her personal participation in live streaming was converted into enterprise business income for false declaration and tax evasion; and income obtained from engaging in other production and operation activities was not declared and paid according to law.

In accordance with the provisions of the Individual Income Tax Law of the People's Republic of China and the Law of the People's Republic of China on the Administration of Tax Collection, our bureau confirmed that it had evaded taxes of 643 million yuan and other underpaid taxes of 600 million yuan.

3. How are the different multiples of fines in this case determined?

A: Paragraph 1 of Article 63 of the Law of the People's Republic of China on the Administration of Tax Collection stipulates that if a taxpayer evades taxes, the taxation authorities shall pursue the taxes and late fees that he or she does not pay or underpay, and impose a fine of not less than 50% but not more than 50% of the tax that is not paid or underpaid.

Our bureau adheres to the principle of following laws and regulations, combining leniency with severity, and equal punishment, and fully considers the facts, nature, circumstances and degree of social harm of the illegal act to punish Huang Wei.

On the one hand, illegal acts such as tax evasion and other illegal acts that they actively corrected should be treated leniently in accordance with the law. Huang Wei conducted a self-examination of her hidden personal income tax evasion and submitted a tax reimbursement application to the tax authorities, and was able to cooperate with the investigation to voluntarily pay back taxes of 500 million yuan, accounting for 78% of the tax evasion, and actively reported tax-related illegal acts that the tax authorities had not yet mastered, with the circumstances of actively reducing the harmful consequences of illegal acts. In accordance with article 32 of the Administrative Punishment Law of the People's Republic of China, our bureau will give a lighter punishment in accordance with the "Zhejiang Provincial Tax Administrative Punishment Discretionary Standards", and impose a fine of 0.6 times on Huang Wei's hidden income to evade taxes but take the initiative to pay back and report the underpayment of taxes.

On the other hand, the illegal acts that fail to correct their mistakes are dealt with seriously according to law according to the degree of harm. According to the "Law of the People's Republic of China on the Administration of Tax Collection" and in accordance with the "Zhejiang Provincial Tax Administrative Punishment Discretionary Standards", Huang Wei concealed her income to evade taxes and did not take the initiative to pay back part of it, which was of a bad nature, seriously endangered the national tax security and disrupted the order of tax collection and management, and was given a heavier punishment and fined 4 times; Huang Wei was fined 1 times for false declaration of the nature of the business conversion income, which was relatively lighter than the concealed income and the degree of harm.

4. Will Huang Wei be held criminally responsible?

A: Article 201 of the Criminal Law of the People's Republic of China stipulates that if a taxpayer has evaded the payment of taxes, after the tax authorities have issued a notice of recovery in accordance with the law, he shall pay the tax payable and pay the late fees, and if he has already received administrative punishment, he shall not be investigated for criminal liability; however, if he has received criminal punishment for evading the payment of taxes within five years or has been given two or more administrative penalties by the tax authorities.

In this case, Huang Wei was first administratively punished by the tax authorities for tax evasion and had not previously received criminal penalties for evading the payment of taxes, and if she could pay the taxes, late fees and fines within the prescribed time limit, she would not be held criminally liable according to law; if she failed to pay the taxes, late fees and fines within the prescribed time limit, the tax authorities would transfer them to the public security organs for handling in accordance with the law.

5. What impact will strengthening the tax supervision of network anchors have on the development of the platform economy?

A: The platform economy is a new form of economic development, which has played an active role in better meeting consumer demand, promoting the transformation of new and old kinetic energy, and promoting high-quality economic development. In the process of rapid development of the platform economy, the tax violations of some network anchors have disrupted the order of tax collection and management and undermined the market environment of fair competition. The tax department investigates and deals with the tax violations of relevant network anchors in accordance with laws and regulations, which is conducive to the long-term standardized and healthy development of the platform economy. At the same time, the tax department will conscientiously implement various preferential tax policies, continue to optimize tax services, and create a good tax business environment for the development of the platform economy. (Reporters Wang Yuxiao and Qu Lingyan)