[Background] Recently, two internet anchors were evaded and evaded taxes, and the tax authorities were required to pay taxes, charge overdue fines, and fines more than 65 million yuan and 27 million yuan respectively.

What are the legal consequences of tax evasion?

On November 22, Liu Liwen, a lawyer at the Jingkai Law Firm, said that tax evasion will not only face administrative penalties, but if a crime is involved, criminal responsibility will also be pursued in accordance with the law.

　　[Concurrent] Liu Liwen, lawyer of Jingkai Law Firm

　　For taxpayers who evade tax, the tax authorities shall pursue the non-payment or underpayment of taxes, late fees, and impose a fine of not less than 50% but not more than five times of the tax not paid or underpaid; if a crime is constituted, it shall be investigated in accordance with the law criminal responsibility.

　　[Explanation] The taxation department said that it considered that the two would be more cooperative after the tax audit was filed, and before the facts of the case were verified, they took the initiative to pay part of the tax, which has the initiative to reduce the harmful consequences of illegal activities, etc., and the two would be fined twice the amount of tax evasion. .

In this regard, Liu Liwen introduced that for tax evasion for the first time, after the tax authority has issued a notice of recovery in accordance with the law, the tax payable has been paid, the late fee has been paid, and the corresponding administrative penalty has been received, no criminal responsibility shall be pursued.

But in some cases, tax evasion will face more severe legal consequences.

　　[Concurrent] Liu Liwen, lawyer of Jingkai Law Firm

　　Except for cases where you have received criminal penalties for evading tax payment within five years, or have been given more than two administrative penalties by the tax authority, that is, if there are these two acts, the criminal responsibility should still be pursued.

Article 201 of the Criminal Law stipulates that taxpayers who resort to deception or concealment to make false tax declarations or fail to declare, evade and pay a large amount of tax and account for more than 10% of the tax payable, shall be sentenced to fixed-term imprisonment of not more than three years or Criminal detention and a fine; if the amount is huge and it accounts for more than 30% of the tax payable, it shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years, and a fine.

　　[Explanation] In September 2021, the Central Propaganda Department issued the "Notice on Carrying out Comprehensive Management in the Field of Culture and Entertainment", which mentioned that tax evasion should be strictly investigated and dealt with to effectively maintain market order.

The State Administration of Taxation also stated in the notice "Strengthening the Taxation Management of Practitioners in the Cultural and Entertainment Sector" that it will further strengthen the daily tax management of practitioners in the cultural and entertainment field and provide guidance to individual studios and enterprises established by celebrities and webcasters in establishing accounts in accordance with laws and regulations. The establishment of a system, and the use of audit collection methods to declare taxes.

At present, the two anchors have suspended live broadcast work and apologized through public channels.

　　[Concurrent] Liu Liwen, lawyer of Jingkai Law Firm

　　With the development of technology, it is less and less likely that tax evasion will not be detected. In addition, in the documents of the State Administration of Taxation, Internet celebrity anchors and celebrities are listed as "employees in the entertainment field", and celebrities will be recognized for tax evasion. For bad deeds, Internet celebrity anchors will also face serious consequences for tax evasion.

(This matter) serves as a good warning for other celebrities, and will also promote the healthy development of the live broadcast industry.

　　(Reported by reporter Shan Lu from Beijing)

Editor in charge: [Ji Xiang]