Legal basis: Article 63 of the Law of People's Republic of China (PRC) Municipality on Tax Collection and Administration, taxpayers who forge, alter, conceal or destroy account books and vouchers without authorization, or overstay expenses or omit or omit income in account books, or refuse to declare or make a false report on tax payment after being notified by the tax authorities, and fail to pay or underpay the tax payable are tax evasion. If a taxpayer evades taxes, the tax authorities shall recover the unpaid or underpaid taxes and late fees, and impose a fine of not less than 50% but not more than five times the unpaid or underpaid taxes. If a crime is constituted, criminal responsibility shall be investigated according to law.