Legal basis: Article 86 of the Law of People's Republic of China (PRC) Municipality on Tax Collection and Management violates tax laws and administrative regulations and should be given administrative punishment. If it is not discovered within five years, it will not be given administrative punishment.
Article 201 of the Criminal Law of People's Republic of China (PRC) * * * A taxpayer who makes false tax returns or fails to make tax returns by deception or concealment, and evades paying a large amount of tax, accounting 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 shall also be fined; If the amount is huge, accounting for more than 30% of the tax payable, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years and shall also be fined. If the withholding agent fails to pay or underpays the tax withheld or collected by the means listed in the preceding paragraph, and the amount is relatively large, it shall be punished in accordance with the provisions of the preceding paragraph. If the acts mentioned in the preceding two paragraphs are carried out many times without being dealt with, they shall be calculated according to the accumulated amount. Whoever commits the act mentioned in the first paragraph, after the tax authorities have issued a notice of recovery in accordance with the law, pays back the tax payable and the overdue fine, and is subject to administrative punishment, shall not be investigated for criminal responsibility; Except for those who have received criminal punishment for tax evasion within five years or have been given administrative punishment by tax authorities for more than two times.
Article 87 of the Criminal Law of People's Republic of China (PRC) shall not be prosecuted beyond the following time limit: (1) If the statutory maximum penalty is less than five years of fixed-term imprisonment, after five years; (2) Ten years if the statutory maximum penalty is fixed-term imprisonment of not less than five years but not more than ten years; (3) Fifteen years if the statutory maximum penalty is fixed-term imprisonment of not less than ten years; (4) Twenty years have passed if the maximum legal punishment is life imprisonment or death penalty. 20 years later, if it is deemed necessary to prosecute, it shall be submitted to the Supreme People's Procuratorate for approval.