Registered Capital Commitments against the Five Year Injection Schedule
Foreign investors must inject subscribed capital within five years under PRC Company Law Article 47 or execute capital reductions to avoid statutory fines
Article 52
Meaning
Limitation provision defines the periods during which tax authorities can collect unpaid taxes resulting from errors, technical omissions or intentional evasion. Within the structure of article 52, the typical window for pursuing unpaid sums is three years, though this expands to five years for significant amounts or special cases. For acts defined as evasion or fraud, no expiration exists, and the state maintains a permanent right to recover the principal and apply late fees.
Error Duration
Mistaken calculations by either the bureau or the taxpayer follow the shorter duration. If the gap remains below 100,000 yuan, article 52 dictates that three years is the maximum lookback period allowed for an adjustment. Oversight by the administrative desk typically misses errors that fall outside this scope.
Extended Pursuit
Larger discrepancies or systemic omissions move the inquiry into the five year bracket. Under article 52, authorities gain additional time when the financial impact exceeds the threshold for common administrative errors. Factories often face deeper reviews if their annual filings show consistent downward trends in gross profit margins.
Evasion Policy
Deliberate concealment of income removes all time protections for the taxpaying enterprise. Application of the indefinite lookback in article 52 follows evidence of false reporting or hidden transfers. Late interest accrues daily on these sums until the entire debt is satisfied in the provincial account.