What Is a Delinquent Tax?

Tax arrears refer to behaviors in which taxpayers and withholding agents have not paid or underpaid the tax in accordance with the tax collection laws or regulations or the tax authorities have set a tax payment period in accordance with tax laws and regulations. If the amount of tax arrears is less than 10,000 yuan and has not constituted a crime, the tax authorities shall recover the taxes and late fees owed, and impose a fine of more than 50% and less than 5 times of the tax owed. ^[1]

Tax owed

The reason is that the generation of tax arrears can be summarized into three main aspects:

Tax authorities can adopt the following four recovery methods for taxpayers:

First, from the date of late payment, an additional 0.05% will be charged daily.

In recent years, local tax authorities have seriously implemented the important instructions of the central leadership on the payment of tax arrears. The management of tax arrears has achieved significant results. However, due to the complex causes of tax arrears, the phenomenon of tax arrears is still a prominent problem in some regions. In order to earnestly strengthen the tax collection responsibilities of both parties, strictly control the new arrears and increase the recovery of arrears, the requirements for strengthening the control of arrears are now notified as follows:

I. Strengthen the application review and plug the loopholes in a timely manner

(A) strict

According to NetEase and other media reports, the Beijing Local Taxation Bureau notified the immigration management agency according to law to prevent the legal representatives of two tax-deficient companies from leaving the country. This is the first time that Beijing has adopted measures to prevent the tax-delinquents from leaving the country. According to the relevant person in charge of the Beijing Municipal Bureau of Local Taxation, in the process of tax collection and management, some enterprises have arrears of taxes and a large amount of money. After repeated calls by the tax authorities, they still have not settled the tax payables and late fees. No warranty is provided. The investigation found that some tax owed persons were suspected of evading payment of taxes by leaving the country. ^[3]