(b) Jack has set up an e-shop selling goods via an internet platform. His total sales in 2014 were RMB400,000. He did not register with the tax authorities or pay any taxes in 2014. This was discovered by the tax bureaus in 2015.
Required:
State the possible consequences Jack may be exposed to under the Tax Collection and Administrative Law, as a result of his failure to comply with the tax registration and tax payment requirements.
Jack
– The penalty for not conducting tax registration on time is up to RMB2,000. [Article 60 of the Tax Collection and Administrative Law]
– Late payment surcharge of 0·05% on the tax overdue calculated daily from the tax due date to the actual date of payment. [Article 32 of the Tax Collection and Administrative Law]
– The penalty for not filing tax returns which resulted in an underpayment of taxes is 50% to 500% of the taxes underpaid. [Article 64 of the Tax Collection and Administrative Law]