Jiangsu man finally recovers one million yuan salary after 4 years, but gets taxed 320,000 yuan.

Jiang Yin, Jiangsu – Mr. Cai was owed approximately one million yuan in unpaid wages by his company for four years. After a hard-fought lawsuit, he finally recovered the money, only to have an excessively high tax amount of 327,600 yuan deducted. Mr. Cai requested a refund from the tax authorities, but his request was rejected, prompting him to take the tax bureau to court.

According to a report by Red Star News, Mr. Cai, a sales director at a certain company, took the company to court in 2019 over the four-year unpaid wages totaling about one million yuan. Ultimately, in May 2020, the company made a one-time payment of the four-year unpaid wages to Mr. Cai and withheld and paid the personal income tax of 327,692.37 yuan in a lump sum.

Mr. Cai believes that the company incorrectly reported and paid income tax by treating the four-year income as one year’s income, leading to an excessively high tax amount. His request for a tax refund was rejected by the tax authorities, prompting him to sue the tax bureau.

In response, the Wuxi Intermediate People’s Court stated that the company’s tax calculation method violated the fairness of tax collection, and the tax authorities did not fulfill their obligation to verify accurately. The court ruled for the tax bureau to recalculate and refund Mr. Cai a tax amount of 47,483.85 yuan.

After the news spread online, many netizens expressed their outrage, with some saying, “This is even more ruthless than loan sharks.” Others commented, “Every word serves the people, cutting right to the point.” “Plucking feathers from a flying goose.” “Why wasn’t the interest on one million over four years taken into account?” “I want to know who benefits from these 300,000-plus taxes.”

Some also remarked, “The company’s actions are not fair, it’s clearly deliberate.” “Is it reasonable to lump together money that someone rightfully earned over several years for tax calculation?”