Liaoning Provincial Local Taxation Bureau:

Your request for instructions on the collection of individual income tax on the income obtained by individuals or partnerships (Liao Di Shui Ge [2000]13) has been received. After study, we hereby reply as follows:

Individuals or several people in partnership to absorb deposits and lend loans to obtain the difference profit of loan interest, which is a violation of the state financial management regulations and should be banned by the relevant departments according to law. Before this kind of behavior is banned by the relevant departments, in order to prevent its spread and regulate personal income, it is now clear that personal income tax should be levied on the income of individuals or individuals from taking deposits and loans in partnership according to the taxable items of "income from production and operation of individual industrial and commercial households"; Interest income earned by individuals who provide funds to the above-mentioned personnel for lending shall be regarded as interest income from fund-raising, and personal income tax shall be collected according to the taxable items of "interest, dividend and bonus income", and the tax shall be withheld and remitted by the payer of interest income.

Pay attention to one sentence: "... this is a violation of the state's financial management regulations and should be banned by the relevant departments according to law. Before this kind of behavior was banned by the relevant departments ... "

Before the ban, how to pay taxes is how to pay taxes. This actually represents an attitude, a very pragmatic and law-abiding attitude, and the administrative organs should be so rigorous.

A person can't prove that his business is legal just because "I have paid taxes according to law". There is no way to manage other taxes, but to implement the tax law. Collecting your tax does not mean that you are legal.

This is one of the manifestations of the "neutral principle" of taxation.