Chinese mainland's tax law has clear provisions on tax evasion, and there are corresponding punishment measures.
The laws, regulations and penalties mainly involved are as follows:
1. Law of People's Republic of China (PRC) on Tax Collection and Management: This law stipulates acts of tax evasion, tax refusal and tax arrears, and will face penalties such as fines, recovery of unpaid taxes and administrative detention.
2. Provisions on Administrative Punishment Procedures in State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC): This provision specifies in detail the procedures for tax authorities to investigate and deal with tax evasion.
3. Regulations for the Implementation of the Law of People's Republic of China (PRC) on Tax Collection and Management: The regulations clearly stipulate that illegal acts of tax evasion can be punished by fines, recovery of tax arrears, administrative detention, revocation of business licenses, etc.
4. Notice of the State Council on Combating Tax Evasion and Fraud: This notice stipulates the specific standards and distinctions of punishment for tax evasion, tax refusal and tax arrears.
According to the above laws and regulations, Chinese mainland tax authorities' punishment measures for tax evasion include:
1. fine: tax evasion, false tax returns, tax evasion and other acts can be fined 5- 10 times. For tax evasion cases with a particularly large amount, a higher fine can be imposed.
2. Recovery of tax arrears: For enterprises that evade paying taxes, the tax authorities may take compulsory measures to recover tax arrears.
3. Administrative detention: The tax authorities may impose administrative detention on enterprises or individuals whose tax evasion is particularly serious and the circumstances are particularly bad.
4. Revocation of business license, etc. For tax evasion cases with particularly serious circumstances, the tax authorities may take punishment measures such as revoking the business license of the enterprise and restricting high consumption.
It should be noted that tax evasion will not only lead to the punishment of enterprises, but also have a great adverse impact on their future operations. Therefore, enterprises should consciously abide by tax laws and regulations, standardize business practices, and prevent the occurrence of tax evasion risks.
Haoliyou Food Co., Ltd. was punished by Tianjin Customs for tax evasion due to the false declaration of the commodity number of imported goods, which affected the national tax collection.
Chinese mainland has some reasonable tax avoidance methods, such as:
1. Enjoy preferential tax reduction and exemption policies according to law: China government has formulated a series of preferential tax policies according to the actual situation of different industries and different types of enterprises and national strategies, which enterprises can enjoy according to their own conditions.
2. Rational use of tax planning: enterprises can reduce corporate tax burden and promote the sustainable development of enterprises through reasonable tax planning, such as rational allocation of assets, business development and establishment of transnational tax structure.
3. Abide by tax laws and regulations and operate in compliance: For the sake of their own interests and stable operation, enterprises should abide by tax laws and regulations and operate in compliance, and cooperate with various tax administrations to prevent tax evasion and avoid risks.
Let's compare the tax evasion penalties in China and the United States. There are some differences. In China and the United States, tax evasion is regarded as an illegal act, but the specific penalties are different:
1. Different penalties: In Chinese mainland, if an enterprise is investigated for tax evasion or false declaration, it can be fined up to 5- 10 times of the tax, and may bear the consequences of recovering the tax owed and administrative punishment; In the United States, the punishment for tax evasion is relatively high, and in particularly serious tax evasion cases, millions of dollars may be sentenced or paid.
2. Different punishment procedures: In Chinese mainland, the tax authorities carry out procedures such as prior notification, hearing and administrative punishment decision according to laws and regulations to protect the legitimate rights and interests of taxpayers; In the United States, the IRS generally conducts criminal investigation or administrative punishment directly after the preliminary investigation, with less notice and hearing.
Therefore, although both China and the United States will be punished for tax evasion, there will be some differences in specific punishment measures and standards. It is suggested that enterprises operate in compliance with laws and regulations, consciously abide by tax laws and regulations, and avoid being suspected of tax evasion.