Legal analysis: it is not illegal for a company not to pay personal income tax to its employees, but it is illegal for a company as a withholding agent not to withhold and remit personal income tax. If a taxpayer or withholding agent's bank or other financial institution refuses to accept the tax authorities' inspection of the taxpayer's or withholding agent's deposit account according to law, or refuses to implement the decision made by the tax authorities to freeze deposits or withhold taxes, or helps the taxpayer or withholding agent to transfer deposits after receiving a written notice from the tax authorities, thus causing tax losses, the tax authorities shall impose a fine of not less than 100,000 yuan but not more than 500,000 yuan, and impose a fine of not less than 1,000 yuan but not more than 10,000 yuan on the directly responsible person in charge and other directly responsible personnel. If a taxpayer or withholding agent engaged in production or business operations violates the tax law stipulated in this Law and refuses to accept the handling by the tax authorities, the tax authorities may confiscate or stop selling invoices.
Legal basis: Article 68 of the Law of People's Republic of China (PRC) on the Administration of Tax Collection, if a taxpayer or withholding agent fails to pay or underpays the tax payable within the prescribed time limit and is ordered by the tax authorities to pay within the prescribed time limit, the tax authorities shall impose a fine of not less than 50% but not more than five times the unpaid or underpaid tax, in addition to taking enforcement measures to recover the unpaid or underpaid tax.