For the behavior of falsely reporting wages, State Taxation Administration of The People's Republic of China's punishment measures are tax recovery and fines. Taxpayers falsely report their wages, resulting in underpayment or non-payment of tax payable, which is tax evasion. The tax bureau may require taxpayers to pay less taxes and late fees, and may also require taxpayers to pay a fine of 50% to 500% of the tax underpaid or unpaid. If the circumstances of tax evasion are serious enough to constitute a crime, the taxpayer may be investigated for criminal responsibility in accordance with the criminal law.

Legal analysis

Of course, the person in charge of the company bears the legal responsibility of using employees to evade taxes, and employees have no substantive responsibility. The punishment for the unit suspected of tax evasion is to sentence the unit to a certain fine and investigate the criminal responsibility of the relevant personnel of the unit. There are many ways for companies to avoid taxes reasonably, but employees can't be used to evade taxes intentionally. Employees are actually used as tools. Enterprises use employees' wages to evade taxes, and legal persons generally bear full responsibility; Tax evasion by enterprises is a serious illegal act. As long as it constitutes a crime, it will be judged by the amount of tax evasion. The greater the amount, the heavier the legal responsibility. To sum up, the company is a relatively large organization. As far as employees are concerned, workers have always been in a weak position, so they are likely to be used by companies to evade taxes. When employees find out, they should report to the local tax authorities in time, so as to better safeguard their rights and interests and protect the national interests.

legal ground

Article 63 of the Law of People's Republic of China (PRC) Municipality on the Administration of Tax Collection, a taxpayer who forges, alters, conceals or destroys account books and vouchers without authorization, or overstretches expenditure or omits income in account books, or refuses to declare or falsely report tax after being notified by the tax authorities, or fails to pay or underpays the tax payable, is considered as 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. If the withholding agent fails to pay or underpays the tax withheld or underpaid by the means listed in the preceding paragraph, the tax authorities shall recover the tax withheld or underpaid and the late payment fee, and impose a fine of not less than 50% but not more than five times the tax withheld or underpaid; If a crime is constituted, criminal responsibility shall be investigated according to law.