The company failed to withhold and pay personal income tax, which violated the provisions of the tax law. Once verified, the tax authorities will order the company to pay back within a time limit and may impose a fine. If the company continues to pay overdue, the fine will be higher. In addition, it is illegal for the legal representative of the company to give kickbacks to customers. If the customer does not constitute a crime of accepting bribes by non-state staff, he shall return the property as soon as possible; If both parties constitute related crimes, they shall bear criminal responsibility according to law. If the company evades taxes, it will not only be fined, but also face criminal responsibility. Therefore, the company should fulfill the obligation of withholding and remitting according to law to ensure legal and compliant operation.
The subject of personal income tax withholding:
1. Taxpayer's obligations: The taxpayer of individual income tax refers to the individual who obtains taxable income;
2. Withholding agent: when a unit or individual pays taxable income, it will withhold personal income tax on its behalf;
3. Self-declaration: taxpayers should declare and pay taxes on the income without withholding agents on time;
4. Supervision by tax authorities: The tax authorities are responsible for supervising and managing the declaration and payment of individual income tax.
To sum up, the company should fulfill the obligation of withholding and remitting according to law, otherwise it will face fines and possible criminal liabilities.
Legal basis:
Tax collection management law
Article 30
Withholding agents shall perform the obligations of withholding and collecting taxes in accordance with the provisions of laws and administrative regulations. The tax authorities shall not require units and individuals that have no obligation to withhold or collect taxes according to laws and administrative regulations. When withholding agents perform their obligations according to law, taxpayers shall not refuse to withhold or collect taxes. If the taxpayer refuses, the withholding agent shall promptly report to the tax authorities for handling. The tax authorities shall, in accordance with the provisions, pay the withholding agents the handling fees for withholding and collecting and remitting.