Legal basis: Article 52 of the Law of People's Republic of China (PRC) on the Administration of Tax Collection, if the taxpayer or withholding agent fails to pay or underpays the tax due to the responsibility of the tax authorities, the tax authorities may require the taxpayer or withholding agent to pay back the tax within three years, but no late fee shall be added.
If a taxpayer or withholding agent fails to pay or underpays the tax due to miscalculation and other reasons, the tax authorities may recover the tax and overdue fine within three years; Under special circumstances, the recruitment period can be extended to five years.
For tax evasion, tax refusal or tax fraud, the tax authorities shall recover the unpaid or underpaid taxes, late payment fees or tax fraud, and shall not be limited by the time limit specified in the preceding paragraph.
Article 8 of the Individual Income Tax Law of People's Republic of China (PRC) has the right to make reasonable tax adjustments under any of the following circumstances:
(a) business dealings between individuals and their related parties do not conform to the principle of independent transactions, and the tax payable by individuals or their related parties is reduced without justifiable reasons;
(2) Enterprises controlled by individual residents, or enterprises established in countries (regions) where the actual tax burden controlled by individual residents is obviously low, do not distribute or reduce the profits belonging to individual residents without reasonable business needs;
(three) individuals obtain improper tax benefits by implementing other arrangements that have no reasonable commercial purpose.
The tax authorities shall make tax adjustments in accordance with the provisions of the preceding paragraph, and if it is necessary to pay back taxes, they shall pay back taxes and collect interest according to law.