“The store’s been shut down—they’re not going to come after me now, are they?”

This is a thought that many online store owners keep to themselves.

Ren Wei, the actual operator of a cosmetics online store in Liaocheng, feels the same way.

In July 2024, he closed his business. No one could be found at the registered address, and the phone number was disconnected. It was as if he had vanished without a trace.

But he was dug up anyway.

The tax authorities obtained his bank transaction records—from two accounts, totaling more than 30,000 transactions—all of which were payments from e-commerce platforms.

The platform sales figures, the amounts deposited into the account, and the number of shipments made by the store—when these three sets of data were cross-checked, they all matched perfectly.

Ultimately, Ren Wei was required to pay back taxes, late payment penalties, and fines, totaling9,712,900 yuanThe

01 Let’s start with a self-assessment: How many of these 6 points apply to you?

① Store sales revenue was deposited into a personal bank account, WeChat, or Alipay

② I’ve obtained a business license, but I haven’t registered for taxes yet, and I’ve never filed a tax return.

③ The platform has a significant volume of transactions, but the reported revenue is almost zero, or only a very small amount was reported.

④ I feel that sole proprietorships don’t have to follow the same regulations as companies, so it doesn’t matter whether or not they file a report.

⑤ Have you ever thought, “If I close the business, no one will investigate it anymore”?”

⑥ I'm considering closing the account, but I haven't sorted out the historical records yet.

If any of the above applies to you, this article is worth reading all the way through.

Ren Wei checked off all five of the first five rules, but then fell into the biggest trap—the sixth one.

How many of these apply to you? If you're unsure which risk level applies to your situation, please send us the name of your platform, your approximate income, and your business type, and Qicaiying will conduct a quick risk assessment for you.

02 What Did He Actually Do?? - Yeah.

In February 2023, Ren Wei registered “Liaocheng Development Zone Nai Pao Trading Business,” a sole proprietorship, to sell cosmetics on e-commerce platforms, with prices ranging from 9.9 yuan to 6,999 yuan.

Then he did three things:

First, they do not register for tax purposes or file tax returns.

He had the business license, but the store didn’t show up in the tax system. Selling goods is one thing, and paying taxes is another—in his world, the two had nothing to do with each other.

Second, all the money goes into personal bank accounts.

Sales revenue of 207 million was withdrawn in full to his personal bank accounts. Two accounts, with over 30,000 transaction records.

In his view, “Once the money is in my own account, it’s my money—it has nothing to do with the store.”

Third, in July 2024, the store was closed down.

No one was found at the registered address, and the phone number was disconnected. He felt that everything was settled.

03 How did the tax authorities track him down?

Step 1: E-commerce Platform Data.

The platform shows that this store's sales revenue from 2023 to 2024 was 207 million yuan.

Step 2: Bank statements.

Tax authorities accessed Ren Wei's personal bank account and discovered more than 30,000 transaction records, all of which were payments from e-commerce platforms.

Step 3: Compare.

How much the platform paid, how much was credited to the card, and how much merchandise the store sold—all three figures matched exactly.

A fine of 9,712,900 landed in his hands just like that.

04 Why Can They Still Track You Down Even After You've Deleted Your Account?

Many online store owners think that “once the store is gone, the debt is gone.”

With 9.71 million, Ren Wei proved that:The store is gone, but the people are still here; the people are still here, but the debt remains.

Article 56 of the Civil Code:
Debts incurred by a sole proprietorship are settled with the owner’s personal assets.

The store is yours; the money goes into your pocket, and the debt is on you.It's the store that's being closed, not you personally.

Shareholders of a limited liability company are liable only to the extent of their capital contributions, butSole proprietors do not have the “limited liability” shield.. Any real estate, vehicles, or savings held in your personal name are all subject to liquidation.

Article 52 of the *Tax Collection and Administration Law*:
In cases of tax evasion, tax resistance, or tax fraud, the tax authorities may collect the back taxes without any time limit.

Taxes are generally collected for three years, and in special cases, for five years. However, tax evasion—IndefinitelyThe

Failing to report 207 million in income constitutes tax evasion. Whether it’s three, five, or ten years—as long as it’s discovered, the authorities will still pursue the back taxes.

05 “Flight-style deregistration” is not an isolated case

Ren Wei isn't the first, and he won't be the last.

Shandong Linyi Yufei Foods, Underreported income and underpaid taxes from 2017 to 2019; the company was dissolved in 2021.Four years after deregistrationRegistration was reinstated, and a penalty of 5,660,900 was imposed.

An Import-Export Company in Shanghai...concealed export sales revenue of 257 million, and was deregistered in 2023. In 2024, it wasRevocation of Deregistration and Reinstatement of Registration, 2025: Retroactive Collection and Penalties82,624,600The

The State Taxation Administration has made it clear for 2025 that “absconding deregistration” is a key target for enforcement. In collaboration with market regulation authorities, any such cases discovered will be rectified immediately.

06 Three Suggestions

If you're thinking about canceling your subscription:

First, get your books in order. Cross-check the three sets of data: platform transaction records, tax returns, and bank receipts. Make any necessary adjustments and file any required returns. Closing your account while issues remain unresolved is like planting a time bomb and waiting for it to go off on its own.

If you've already deactivated your account but aren't sure:

Don’t panic, but take action. First, figure out exactly where you stand—how much the platform sold, how much was reported, and what the discrepancy is. Then assess the risk level and develop a plan of action.

07 Regarding Retroactive Payments:

Many people are afraid to make up for missed work, fearing they’ll get caught if they do.

But the reality is this: if you voluntarily make back payments, you only have to pay the back taxes, late payment penalties, and daily interest; if you are audited, in addition to the back taxes and late payment penalties, you also have to payA fine of 0.5 to 5 times the amountThe

Ren Wei paid 5,447,200 in back taxes, and the fine was roughly the same amount.

Which one would you like to be?

If you're unsure whether your platform transaction volume, personal account receipts, and reported data match up, you can add us on WeChat and send us your basic information first; Qicaiying will help you conduct a preliminary risk assessment.

📱 Phone: 18676749275 💬 WeChat: qcygscszk

statement denying or limiting responsibility

The content of this article is based on official cases published by tax authorities and is intended to provide general information on finance and taxation as well as to highlight compliance risks; it does not constitute any tax, legal, or financial advice. The cases and penalty outcomes mentioned in this article are derived from officially disclosed information. If readers face specific tax issues, they should consult a qualified tax professional or the competent tax authority. Tax policies are subject to change at any time; please refer to the latest laws and regulations. Qicaiying assumes no legal liability for any losses arising from reliance on the content of this article.