Core Points - The article highlights two cases of "escape-style" tax evasion through company deregistration in China, emphasizing the legal consequences for such actions [1][2] Group 1: Case Summaries - In Shanghai, Wuhang Import and Export Co., Ltd. concealed sales revenue of 257 million yuan and failed to pay taxes totaling 39.8374 million yuan during its operation from 2021 to 2023. The company applied for deregistration in 2023 but was later reinstated by tax authorities in 2024, leading to a total penalty of 82.6246 million yuan in 2025 [1] - In Shandong, Yufei Food Co., Ltd. underreported VAT by 2.0515 million yuan and failed to withhold personal income tax of 208,600 yuan from 2017 to 2019. The company also sought deregistration in 2021, but tax authorities reinstated it in 2024, resulting in a penalty of 5.6609 million yuan in 2025 [2] Group 2: Regulatory Context - The Chinese government has implemented measures to facilitate company deregistration, aiming to improve the business environment. However, some individuals exploit these measures to evade tax obligations by submitting false documents and concealing facts [1][2] - The State Taxation Administration of China has emphasized that any attempts to evade tax payments through "escape-style" deregistration will face legal penalties, reinforcing the commitment to maintaining a fair tax order and a favorable business environment [1][2]

Core Viewpoint - The article highlights the issue of "escape-style" company deregistration in China, where companies attempt to evade tax responsibilities by deregistering, but are ultimately held accountable by tax authorities [4][6][7]. Group 1: Case Studies - Yu Fei Food Company in Shandong was found to have evaded VAT payments of 2.0515 million yuan and personal income tax of 208,600 yuan from 2017 to 2019, and applied for deregistration in 2021 to cover up these violations [2][3]. - Shanghai Wuhang Import and Export Company was discovered to have concealed sales income of 257 million yuan and failed to pay taxes amounting to 39.8374 million yuan from 2021 to 2023, also applying for deregistration in 2023 [4]. Group 2: Legal Framework - The Tax Collection and Administration Law of the People's Republic of China states that tax authorities can pursue unpaid or underpaid taxes without a time limit for cases of tax evasion, anti-tax, or tax fraud [4][5]. - The implementation rules of the Tax Collection and Administration Law require companies to settle all tax obligations before applying for tax deregistration, ensuring compliance with tax duties [5]. Group 3: Regulatory Response - The tax authorities, in collaboration with market supervision and administrative approval departments, can revoke the deregistration of companies that submit false materials or use fraudulent means to obtain deregistration [6]. - Tax authorities emphasize that any attempt to evade tax obligations through "escape-style" deregistration will lead to legal consequences, reinforcing the importance of compliance in maintaining a fair tax environment [7].

Core Viewpoint - The tax authorities have exposed two cases of "escape-style" tax evasion through fraudulent company deregistration, highlighting the misuse of deregistration processes to evade tax obligations [1][2][4]. Group 1: Tax Evasion Cases - Shanghai Wuhuan Import and Export Co., Ltd. concealed sales income of 257 million yuan and failed to pay taxes totaling 39.8374 million yuan during its operation from 2021 to 2023, subsequently applying for deregistration in 2023 [1]. - Juxian County Yufei Food Co., Ltd. evaded 2.0515 million yuan in value-added tax and failed to withhold personal income tax of 208,600 yuan from employee dividends between 2017 and 2019, applying for deregistration in 2021 [2]. Group 2: Legal Framework and Consequences - The tax authorities can recover unpaid taxes and impose penalties regardless of the company's registration status, as per the Tax Collection and Administration Law [2][3]. - The law mandates that companies must settle all tax obligations before applying for tax deregistration, emphasizing that deregistration does not absolve tax responsibilities [3][4]. Group 3: Expert Opinions - Experts assert that the notion of using deregistration to escape tax liabilities reflects a misunderstanding of tax law, and such actions will ultimately be penalized [3][4]. - The coordinated efforts of tax authorities and related departments to combat fraudulent deregistration are aimed at maintaining a fair and orderly tax environment [4].

Core Viewpoint - The tax authorities have publicly exposed two cases of "escape-style" tax evasion, marking the first time such cases have been disclosed, emphasizing that tax violations will ultimately be legally addressed regardless of attempts to evade responsibilities through company deregistration [1][2]. Group 1: Tax Evasion Cases - The two highlighted cases involve Shanghai Wuhuan Import and Export Co., Ltd. and Juxian County Yufei Food Co., Ltd., both of which attempted to evade tax obligations through deceptive deregistration practices [1]. - The tax authorities have implemented measures to facilitate company deregistration, but some entities exploit these processes by submitting false documents and concealing key facts to evade tax responsibilities [1][2]. Group 2: Legal Framework and Consequences - According to the Tax Collection and Administration Law, tax authorities can pursue unpaid or underpaid taxes without time limitations, and fraudulent deregistration can lead to the revocation of the deregistration [2]. - The notion that companies can sever their responsibility chain through deregistration reflects a serious misunderstanding of tax law, as any fraudulent actions will ultimately be uncovered and punished [2]. Group 3: Tax Compliance and Business Environment - The tax authorities stress that lawful tax payment is a legal obligation for all businesses, and any attempts to evade taxes through deregistration will face legal repercussions [3]. - The message conveyed by the tax authorities is that honest tax compliance is not optional but a necessary requirement for all business entities, and compliance is essential for sustainable development [2][3].

Core Viewpoint - The tax authorities are intensifying efforts to combat "escape-style" company deregistration aimed at evading tax payments, highlighting that such actions will not go unpunished [1][5]. Group 1: Case Studies - Yu Fei Food Company in Shandong was found to have underreported VAT by 2.0515 million yuan and failed to withhold personal income tax of 208,600 yuan from employee dividends between 2017 and 2019, subsequently applying for deregistration in 2021 [1][2]. - Shanghai Wu Han Import and Export Company was discovered to have concealed sales income of 257 million yuan and failed to report taxes amounting to 39.8374 million yuan from 2021 to 2023, also applying for deregistration in 2023 [3]. Group 2: Legal Framework - The "Tax Collection and Administration Law of the People's Republic of China" allows tax authorities to pursue unpaid or underpaid taxes without a time limit, countering the notion that deregistration can shield companies from tax liabilities [3][4]. - The "Implementation Rules of the Tax Collection and Administration Law" stipulate that companies must settle all tax obligations before deregistration, ensuring compliance with tax duties as a prerequisite for lawful market exit [4]. Group 3: Regulatory Response - Tax authorities, in collaboration with market supervision and administrative approval departments, are empowered to revoke deregistration and restore tax registration for companies attempting to evade tax through deregistration [2][4]. - The tax authorities emphasize that any attempt to evade tax obligations through "escape-style" deregistration will lead to legal consequences, reinforcing the commitment to maintaining a fair tax environment [5].