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DAGON TAX, located in Shenzhen, has a team of experts in the field of tax law, focusing on professional services in the fields of corporate compliance, high-net-worth private, financing and M&A, capital market taxation, tax dispute resolution, international taxation, transfer pricing and anti-avoidance response.
【 Tax Dispute Resolution Department 】
The purpose of this column is to share relevant articles in the field of tax audit response, and we can provide assistance for enterprises to self-check; Coordination of tax-enterprise relations; assistance with tax hearings; Tax administrative reconsideration assistance; Tax administrative litigation and other services.
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According to the tax administrative penalty decision of the First Inspection Bureau of the Shenzhen Municipal Taxation Bureau of the State Administration of Taxation, Shen Shui Yi Ji Zhi [2024] No. 53, a communication company in Shenzhen issued money (general labor remuneration and accidental income) to Zhong Moumou, Cai Moumou, Zhao Moumou, Wang Moumou, Hong Moumou and others through private accounts from December 2020 to March 2022, and did not withhold and pay individual income tax. After calculation, the above-mentioned illegal acts caused your company to withhold and pay a total of RMB 1,613,581.27 of individual income tax. In accordance with the provisions of Article 69 of the Law of the People's Republic of China on the Administration of Tax Collection, it is decided to impose a fine of 0.5 times the amount of undeducted tax of RMB 806,790.63 for your company's deductible and undeducted individual income tax of RMB 1,613,581.27 from 2020 to 2022. The total fines were RMB 806,790.63.
Comments
Among the nine items of individual income tax, in addition to the business income paid to individuals, other taxable income includes: (1) income from wages and salaries; (2) Income from remuneration for labor services; (3) Income from author's remuneration; (4) Income from royalties: (5) Income from interest, dividends and bonuses; (6) Income from property leases; (7) Income from the transfer of property; (8) Incidental gains. The unit or individual making the payment is a withholding agent, and it shall perform the withholding and payment obligations and handle the full withholding declaration of all employees in accordance with the law.
For the crime of tax evasion, it can be a natural person or an entity. For withholding agents, as long as the amount of tax evaded is more than 100,000 yuan, it meets the standard for filing a case for prosecution, and the special clause of not pursuing criminal liability does not apply.
In the new interpretation of the two supremes (you can click to view previous articles), the threshold for tax evasion by withholding agents has been raised, the risk of tax evasion has been reduced, and it has also kept pace with the times, adding behaviors such as yin-yang contracts, income decomposition, and catch-all clauses. In practice, some MCN institutions help online anchors evade tax payment through means such as yin-yang contracts and splitting income, which constitutes a great criminal risk of tax evasion.
Therefore, for withholding agents, they should fulfill their withholding obligations in accordance with the law and beware of administrative and even criminal risks.
Written by: Caizi
Typesetting: Chen Wen
Headline Douyin public account: Dagong Tax
The content of this article is for general information purposes only and does not constitute the provision of any professional advice or services. Nothing provided herein should be construed as formal tax, accounting, or legal advice.
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