On May 22, tax authorities in various regions publicly disclosed eight tax evasion cases.

The industries involved include coal, retail, building materials, and others… The outcomes for the entities involved in the cases were highly consistent:Taxes and fees have been collected, late payment penalties and fines have been imposed, and in most cases, the full amount has been recovered.

At this point, many cross-border sellers might think, ”That doesn’t apply to me.”

After all, this scandal doesn't involve the e-commerce industry.

But if you're using a personal account to receive payments from Amazon, TikTok Shop, or PayPal—Your reasoning is exactly the same as that behind these eight cases.

01 Receiving Payments Through Personal Accounts: Why Is This a ”Red Line” for Cross-Border Sellers?”

The essence of receiving payments into personal accounts is to transfer business revenue—which should have been deposited into the company’s account—to an individual’s name, thereby evading corporate income tax or value-added tax reporting.

The tax authorities have a very clear definition of this type of conduct:Concealing income and filing false tax returns constitute tax evasion.

Penalty Standards:

⚠️ Statute of limitations: Generally, 5 years for tax violations; **indefinite** for tax evasion and tax fraud.

02 Four High-Risk Scenarios for Cross-Border Sellers Using Personal Bank Accounts to Receive Payments

Scenario 1: Amazon/TikTok Shop payments are deposited directly into the legal representative’s or shareholder’s personal bank account

For the sake of convenience, many sellers simply list the owner’s personal account as their payment account on the platform. This money never passes through the company’s account, nor is it reported for tax purposes.

Scenario 2: Withdraw funds directly to your personal bank card after receiving payments via Payoneer, Wanlihui, or similar services

Payoneer itself isn’t the problem, but the combination of ”a payment account held in an individual’s name + withdrawals to a personal bank card + failure to report unrecorded income” is a classic case of concealing income through a personal account.

Scenario 3: Combining Income from Multiple Accounts into a Single Personal Card

Some sellers operate multiple stores across various platforms. For the sake of convenience, they consolidate all sales proceeds from these platforms into a single personal bank account for centralized management. This practice leads to even greater confusion regarding the funds, making it more difficult to prove their innocence if investigated.

Scenario 4: Smuggling Profits Through ”Personal Loans”

Profits that should have been properly distributed as shareholder dividends are instead classified as ”loans” or ”operating expenses” and channeled through private accounts to evade corporate income tax and personal income tax.

📌 If you find that you fit any of the scenarios described above, we recommend that you conduct a risk assessment immediately.
Cell phone: 18676749275 ｜ WeChat: qcygscszk

03 How did the tax authorities uncover this?

This is a question that many people have:I just used my personal account—how did they find out?

The current tax audit system is already capable of doing the following:

If there is a significant discrepancy between the platform’s sales data and the income reported to the bank, the system will automatically issue an alert, triggering the audit process.

It’s not a question of ”whether” to investigate, but ”when” to investigate.

04 The Correct Structure for Compliant Receipts: Corporate Account + Clear Transaction History

There is only one core principle behind compliant payment collection channels:Every source of revenue must be accounted for by a corresponding corporate entity and supported by complete accounting records.

Domestic Corporate Structure

Hong Kong Company + Dual-Entity Structure (The Best Choice for Cross-Border Sellers)

Why Is a Hong Kong Company Structure More Suitable for Cross-Border Sellers?

• Hong Kong dollars circulate freely, with no foreign exchange controls, making it more convenient for platforms to receive payments
• Hong Kong has signed tax treaties with more than 100 countries and regions and maintains a high level of tax transparency.
• Offshore exemption mechanisms are legal and compliant, not ”tax evasion”

📞 If you’d like to learn how to set up a dual-entity structure consisting of a Hong Kong company and a mainland China company, please feel free to contact Qicaiying.

Cell phone: 18676749275 ｜ WeChat: qcygscszk

05 What should I do if I’m already using a personal bank account to receive payments?

Don't panic, but act as quickly as possible.

Important Note: The consequences of ”voluntary disclosure” versus ”detection through an audit” during a tax audit differ significantly. Voluntary disclosure generally results only in the collection of back taxes and late payment penalties; detection through an audit, however, may result in additional fines ranging from 0.5 to 5 times the tax amount, and in severe cases, the matter may be referred to judicial authorities. The sooner you address the issue, the lower the cost will be.

put at the end

These eight exposed cases are just a snapshot of the tax authorities’ strengthened oversight.

In 2026, with the full implementation of the statutory requirement for platform data reporting (Order No. 810), cross-checking of bank transaction records, and the international exchange of information under the CRS,私The hidden space for collecting payments from households is rapidly shrinking.

Just because you've been using it for years without any problems doesn't mean there won't be any in the future.

If you’re still using a personal bank account to receive payments from Amazon or TikTok, we recommend conducting a systematic compliance self-assessment—It’s much more cost-effective to understand your risk exposure than to try to fix things after the fact.

Scan the QR code to add a Qicaiying consultant for a free self-assessment of risks associated with receiving payments into personal accounts, an evaluation of any back taxes owed, and a remediation plan.

Qicaiying | Turning Compliance Solutions into Tangible Results

Faced with the tax authorities’ intensive audits of payments received through personal accounts, many sellers know they need to make corrections, but often don’t know where to start when confronted with years of unreported transactions, disorganized payment accounts, and unclear profit distributions. Qicaiying helps you implement a solution by addressing the following four areas:

1. Risk Assessment for Private Accounts and Voluntary Tax Payments

Comprehensively review private account deposit records from the past three years, compare them with the platform’s sales data, and accurately calculate the additional tax and late payment penalties owed. Assist in coordinating with a professional tax accountant to file an amended tax return, aiming to secure the most favorable outcome for voluntary tax payment.

2. Establishing a Compliance-Based Payment Collection Framework

We cut off payment channels through private accounts and help you establish a compliant payment system that follows the “platform → company account” model. If your Hong Kong company needs to receive overseas revenue, we offer a one-stop service for Hong Kong company registration and bank account opening, ensuring that every payment has a clear entity, is properly recorded, and is traceable.

3. Completing Historical Financial Records and the Chain of Evidence

For Hong Kong companies that have not maintained accounting records or undergone audits for an extended period, we assist with quarterly bookkeeping, audits, and tax filings. At the same time, regarding related-party transactions, we establish a “three-stream closed-loop” chain of evidence—where contracts, invoices, and transaction records align—that can withstand tax authorities’穿透性 audits.

4. Long-Term Financial and Tax Management Services and Risk Early Warning

We provide ongoing services such as annual audits, tax filing, and CRS compliance reporting, with automatic reminders for key deadlines. We help you establish a long-term compliance framework to prevent you from inadvertently crossing the line again by accepting payments into personal accounts due to oversight.