Revised Law of the People's Republic of China Concerning
Tax Collection and Tax Administration

I General Provisions

1. The Law of the People's Republic of China Concerning Tax Collection and Tax Administration is formulated to strengthen tax administration, standardize the behavior of the tax revenue collection and payment, protect taxpayers' legitimate rights and interests and promote economic and social development.

2. The Law is suitable to the collection and administration of different tax revenues that is collected by the tax authority in accordance with the law.

3. The law has to be followed with respect to the adoption of new tax, termination of a tax, and tax reduction, tax exemption, tax refund and tax repayment. The State Council shall make administrative rules and regulations that have to be observed regarding the above decisions under authorization by the Law. Any department, unit and individual shall not allowed to collect new tax, terminate a tax or grant tax reduction, exemption, refund or repayment decisions at discretion in violation of laws or administrative rules and regulations.

4. The units and individuals specified by laws and administrative rules and regulations to be liable to payment of taxes are the taxpayers. The units and individuals specified by laws and administrative rules and regulations to have an obligation of withholding taxes and remitting taxes are the withholding agents. The taxpayers and the withholding agents should, in accordance with laws and administrative rules and regulations, pay taxes or withholding and remit taxed or collect and remit taxes.

5. The tax administration department of the State Council is in charge of management of the national tax revenue. Regional State Taxation Administration and local taxation bureaus shall manage the tax collection in accordance with the division of the tax administration power in China stipulated by the State Council. Local governments at all levels shall strengthen guidance or coordination of tax collection and management within administrative division, support the tax authorities to carry out their work, calculate the taxation according to statutory rate and to collect the taxation in accordance with the law. Each relevant department and unit should support and coordinate with the tax authority to carry out the work in accordance with the law. Any unit and individual can't obstruct the tax authorities when they are carrying out the tax collecting and administration works in accordance with the law.

6. The country equips the tax authorities at all levels with the modern information technology in a planned way, strengthens the modernization construction of the information system of the tax collection and administration. And the country sets up and improves the system of shared information between tax administration department and other governmental departments. The taxpayers, withholding agents and other concerned units shall offer the information of the tax payment, withholding and remitting to the tax authority accurately in accordance with the nation's related regulations.

7. The tax authority should propagate the law of tax collection and administration, administrative rules and regulations extensively, to popularize the knowledge of paying taxes, and to offer the advisory service of paying taxes to taxpayers free.

8. The taxpayers and withholding agents have the right to learn about state taxation law, administrative rules and regulations and anything about the procedure of the payment of taxation from tax authorities. Taxpayers and withholding agents have the right to require the tax authorities to keep secret for them. And the tax authorities should keep secret for the taxpayers and withholding agents. The taxpayer enjoys the right of applying to reduce, exempt and refund of tax in accordance with the law. The taxpayers and withholding agents enjoy the right of state and defense to the decision made by the tax authorities. And they enjoy the right of applying for the administrative reconsideration, rising administrative litigation and asking for national compensation in accordance with the law. The taxpayers and withholding agents have the right to charge and prosecute activities of the tax authorities and tax staffs against laws and disciplines.

9. The tax authorities shall strengthen the building of contingent, and improve tax staff's political professional qualifications. The tax authorities and tax staffs shall enforce the law impartially, devoted to their duties, honest and upright, treating people courteously, servicing civilly, respecting and protecting the right of taxpayers and withholding agents and accepting their supervision in accordance with the law. The tax staff shall not extort or accept bribes, doing wrong to serve their own friends or relatives, neglect their duties, not soliciting or short-soliciting recruited taxes. And the tax staff shall not abuse their power and levy more tax or embarrasses the taxpayer and withholds agents on purpose.

10. The tax authorities at all levels must set up and improve the system of internal restricting and supervision and management. The tax authority of higher level should supervise the law enforcement activities of the subordinate tax authorities in accordance with the law. The tax authorities at all levels should supervise and inspect the situation of their staff members' carrying out of the law, the administrative regulations and the criterion of honest and self-contained.

11. The duties of collecting, managing, auditing, administrative reconsideration of the staffs in the tax authorities should be clear, separated and can restrict each other.

12. Those interested parties with the taxpayers, withholding agents or the illegal case of the taxation should avoid when the tax staffs impose tax and investigate and prosecute illegal cases of taxation.

13. All units and individuals have the right to inform against the behavior of those violating law of tax administration. The authorities receiving the inform and that is responsible for investigation and prosecution should keep secret for accuser. The tax authority should reward accuser according to the regulation.

14. The tax authority in this law refers to the tax bureaus, tax branches, tax office and the social tax organization of announcement according to the regulations of the State Council.

II The Management of Taxation

a. Tax registration

15. Enterprises, the branches and places set up by enterprises engaged in production or business operation in other jurisdictions, individual industrial and commercial households and the institutions engaged in production or business operation (Hereinafter referred to as the taxpayer who is engaged in production or business operation) should, within 30 days after receiving the business license, come to the local competent tax offices for written tax registration by providing the related certificates. With regard to the tax registration form filled in by the taxpayer, the competent tax department should, within 30 days, complete the verification, and issues the tax registration certificate. The industrial and commercial administration department should notice on regular basis to the tax department about the industrial and commercial registration and issuance of the business licenses. The range and way of taxpayers and withholding agents beyond the first paragraph of this article handling tax registration and conducting withholding registration is stipulated by the State Council.

16. In case of any change occurring to the contents of the registration, the taxpayer who is engaged in production or business operation should, within 30 days after the registration of change or before applying nullify the registration with the industrial and commercial administration department, declare and apply for altering or canceling the tax registration with the tax authority, supplying related certificates.

17. The taxpayers engaged in production and business operations should, by following the relevant rules of the State, open a basic depository account and other depository accounts in banks and other financial institutions by showing the tax registration certificates and report all account numbers to the tax department. The banks and other financial institutions should record the tax registration certificate numbers in the accounts of the taxpayers engaged in production and business operation and record the account numbers of the taxpayers in the tax registration certificates. When the tax authorities inquire by law about the accounts of the taxpayers engaged in production or business operation, the relevant banks and other financial institutions should provide assistance and cooperation.

18. The taxpayer should use the tax registration certificate according to the regulation of the tax stipulated by tax administration of the State Council. The tax registration certificate can't be lent, modified, damaged, bought and sell or forged.

b. The management of accounting records and vouchers

19. Taxpayers and withholding agents should, in conformity with relevant laws, administrative regulations and the rules set by the Ministry of Finance and the State Administration of Taxation, set up accounting records, and make records and accounting on the basis of legal and valid vouchers.

20. The taxpayers engaged in production and business operation should submit the financial and accounting system or financial and accounting method and the accounting software to the tax offices for records. In case of the above-mentioned system or method contrary to the tax provisions or rules of the State Council or financial and accounting department of it, the amount of tax due shall be computed according to the tax provisions and rules of the State Council and the financial or accounting department.

21. The tax department is the competent organ for administering the invoices, which is responsible for the management and monitoring of invoice printing, purchasing, issuance, receipt, storage and cancellation. The units and individuals should issue, use or receive invoices in accordance with the regulations when they buy or sell goods, provide or receive business services or are engaged in other business activities. The method of invoice administration is stipulated by the State Council.

22. The special VAT invoices shall be printed by the enterprise designated by the State Administration of Taxation. Other invoices shall be printed by the enterprises designated by the competent state or local tax department of province, autonomous region and municipality directly under the Central Government. It is prohibited to privately print invoices without authorization of the above tax administration.

23. The government actively popularizes the use of taxation control devices according to the need of tax administration. The taxpayers shall install and use the devices according to the tax rules and regulations. The taxation controlling devices shall not be damaged or changed without authorization.

24. The taxpayers and withholding agents engaged in production and business operation shall keep the accounting records, accounting vouchers, after-tax vouchers and other related information for fixed time limit according to the tax rules and regulations of the financial and tax department of the State Council. All the above records and vouchers shall not be forged, altered or damaged privately.

c. Declare the tax payment

25. The taxpayers and the tax offices must declare the formulated tax, show form of taxes paid and financial accounting statement in accordance with the tax rules and regulations and other materials required by the tax offices according to actual need. The withholding agents and the tax offices shall deliver the report of withholding about the fixed content and on the fixed date according to the tax rules and regulations, or the related materials required by the tax offices according to the actual needs.

26. Taxpayers and withholding agents can go directly to the tax offices to handle tax declaration or deliver the withholding report, or take posting, the electronic message or other ways to handle the above-mentioned items according to the tax laws and regulations.

27. Taxpayers and withholding agents can postpone the declaration of taxation or withholding reports under authorization of tax authorities for not handling and paying taxes and declaring taxation and withholding reports on schedule. The postpone handling of above-mentioned declaration shall pre-pay taxes according to the amount of tax paid last issue or the amount to pay confirmed by the tax authorities. And the postpone taxation settlement shall be finished during the approved postponement.

III Collection of Taxation

28. The tax authorities shall collect taxation in accordance with the tax laws and regulations. Any kind of new tax, stop of a tax, taxation of less or more, delayed or ahead-of-time imposing or apportionment tax without permission is prohibited. The tax liability of the agricultural tax is verified according to the tax laws and administrative regulations.

29. Only the tax departments and staffs and those units and personnel under authorization and commission of tax laws and administrations can carry on the collection of taxation.

30. The withholding agents perform duty of withholding and remitting under authorization of the tax laws and administrative rules and regulations. The tax offices should not order units or personnel, which are not designated by the tax laws and regulations as the withholding agents, to handle with the obligation of withholding taxation. The taxpayers shall not reject the withholding agents to carry out their tax withholding work according with the law. The withholding agents shall report to the tax department when the taxpayers do not cooperate. The tax department shall pay the withholding agents fixed commission charge according to the rules and regulations.

31. The taxpayers and withholding agents should pay or remit the taxes within the time limit specified in laws, administrative regulations or by the tax department according to the laws and administrative regulations. Where the taxpayers actually have difficulties in paying the taxes on time, a maximum three months' extension may be granted with no late payment interest charged upon approval by the offices of SAT or local tax bureaus at provincial level.

32. Where the taxpayers fail to pay the tax or the withholding agents fail to remit the taxes within the time limit, the tax department shall charge 0.05% late payment interest per day starting from the expiration of tax payment time limit to the date when the taxpayers or withholding agents finally pay or remit the taxes in addition to sending a tax payment notice ordering the payment or remitting of taxes within a time limit.

33. Taxpayers may apply to the competent tax department for tax reductions or exemptions in written form in conformity with laws and administrative rules and regulations. The application for tax reductions and tax exemptions should be examined and approved by the reduction and exemption verification organs under the authorization by laws and administrative rules and regulations. Any tax reduction or exemption decision made at discretion by various local people's governments, the competent department of various levels of people's governments, units and individuals in contradiction to laws and administrative rules and regulations shall be invalid and the tax department should not observe that and should report to the higher tax department about that.

34. When collecting taxes or withholding taxes, the tax department should issue to the taxpayers the tax payment certificates. When the withholding agents withhold taxes, the withholding agents should issue tax-withholding certificates when the taxpayers request for that.

35. In one of the following circumstances in respect of a taxpayer, the competent tax department shall have the right to assess the amount of tax payable by the taxpayer:

1) Accounting books may, in accordance with relevant provisions of laws and administrative regulations, not be kept.

2) Accounting books that should be kept according to laws and administrative regulations have not been kept.

3) Arbitrarily destroying accounting books or refusing to provide tax information.

4) Although accounting books have been kept, the accounting entries have not been entered in an appropriate manner or the information on costs, receipt vouchers and expense vouchers are incomplete, causing difficulties in conducting an audit.

5) Failing to go through tax filing procedures within a prescribed time limit and, after having been ordered by the competent tax department to file tax returns within the prescribed time limit, still failing to file the tax returns within the prescribed time limit.

6) The tax base computed by the taxpayers is obviously low without any reason.

The procedures and methods that tax administration verifies the amount of tax due for taxpayers are stipulated by the tax administration of the State Council.

36. The receipt or payment of charges or fees in business transactions between the establishments or places engaged in production or business operation established in China by an enterprise or foreign enterprise, and its associated enterprises should be made in line with transactions between independent enterprises. Where the arm's length principle is not followed resulting in reduction of tax payable or taxable income, the competent tax department may make reasonable adjustments.

37. To the taxpayers engaged in production and business operation without applying tax registration according to the tax laws and regulations or those engaged temporarily in business operation, the competent tax authorities shall compute the taxable income and order the enterprises to finish the taxation. Tax authorities can detain those who do not pay the taxation equivalent value of commodities and goods to the value of taxation due. The tax authority shall release and return the detained commodities and goods as soon as the tax has been collected after detaining. The tax authorities may auction or selling off the detained commodities and goods according to the tax laws upon approval of Director of the tax department at or above county level, in order to pay the tax with the income from auction and selling-off.

38. Where the competent tax department has grounds for deeming that a taxpayer, which is engaged in production and business operation, intends to escape from tax payment obligation, the competent tax department may, prior to the prescribed date of the tax payment, order the taxpayer to pay the tax payable within the prescribed time limit. In the event that evidences show that the taxpayer is obviously going to transfer or conceal its taxable commodities, goods and other property or taxable income during the prescribed time limit, the competent tax department may order the taxpayer to provide a guaranty for the tax payment. If the taxpayer is unable to provide a guaranty for the tax payment, the competent tax department may, upon approval of Director of the tax department at or above county level, implement the following measures for retaining tax revenue:

1) Deliver the Letter of Temporarily Suspending Payment of Deposit to the banks or other financial institutions with which the taxpayer has opened an account to freeze the taxpayer's deposits of an amount equivalent to the amount of tax payable.

2) Impound or seal up the taxpayer's taxable commodities, goods or other property, the value of which is equivalent to the amount of tax payable. In the event that the taxpayer makes the tax payment within the prescribed time limit as mentioned in last article, the competent tax department must immediately lift the tax guaranty measures. Should the taxpayer fails to make the tax payment at the expiration of the time limit, the competent tax department may, upon approval of Director of the tax office at or above county level, notify in writing the banks or other financial institutions with which the taxpayer has opened an account of withholding and remitting the amount of tax out of the taxpayer's deposits frozen, or sell by auction or sales the commodities, goods or property which have been impounded and use the proceeds therefrom to make good the amount of tax payable. The houses and items necessary for maintaining the life of individuals and for supporting the family members are not included in the scope of tax guaranty measures.

39. Where the tax department has not lift the tax guaranty measures as soon as the taxpayer makes the tax payment within the prescribed time limit, the tax department should bear the compensation responsible for losses of taxpayer's legal rights and interest.

40. Where a taxpayer or withholding agent engaged in production and business operation fails to pay or remit tax within the prescribed time limit, or a tax payment guarantor fails to pay the guaranteed amount of tax within the prescribed time limit, the competent tax department shall order them to pay the tax within a new time limit. In the case of failure to pay the tax within the new time limit, the competent tax department may, upon approval of Director of the tax department at or above county level, implement the following mandatory enforcement measures:

1) Deliver the Notice of Withholding Taxes to the banks or other financial institutions with which the taxpayer or withholding agent has opened an account. Upon receipt of the Notice above, the relevant banks and other financial institutions should timely withhold and remit the amount of tax out of its deposits.

2) Impound, seal up or sell by auction or sale by law the commodities, goods or other property the value of which is equivalent to the amount of tax payable, and use the proceeds therefrom to make good the amount of tax payable. At the same time as implementing the mandatory measures, the tax department shall implement the relevant mandatory measures to collect the late payment interest that has not been paid by the taxpayer, withholding agent or tax payment guarantor. The houses and items necessary for maintaining the life of individuals and for supporting the family members are not included in the scope of tax enforcement measures.

41. The tax guaranty and enforcement measures mentioned in article 37, 38 and 40 shall not be carried out by units or individuals without authorization.

42. In taking the tax guaranty and enforcement measures, the competent tax department shall implement the authority in legal procedures in accordance with the law. The houses and items necessary for maintaining the life of individuals and for supporting the family members are not included in the scope of tax guaranty and enforcement measures.

43. Where the tax department abuses its power by violating the law in taking tax guaranty measures or tax enforcement measures or by taking improper tax guaranty measures or tax enforcement measures, which lead to losses of the legal rights and interest of taxpayers, withholding agents or tax payment guarantors, the tax department should bear the compensation responsibility.

44. A taxpayer or its representative who needs to leave China but owes taxes should settle the amount of tax owed or provides a guaranty to the competent tax department before leaving China . The competent tax department should notice the departure administration to stop those who neither clear up the tax liability and late payment interest nor provide guaranty from leaving the country.

45. The tax department collects taxes, which are the first priority than the credits without guaranty except otherwise stipulated. Where the taxes owed by taxpayers occur prior to mortgage, pawn or lien of the property of the taxpayers, taxes should be prior to mortgage creditors, pawn creditors and lien creditors.

In case that the taxpayers owe taxes and at the same time are imposed fines and confiscation of illegal income by the administrative department, the taxes are prior to the fines and confiscation of illegal income.

The tax department should make public the information concerning the tax arrears.

46. When owing taxes, the taxpayers should explain to the mortgage creditors or the pawn creditors when making mortgage or pawn with their property. The mortgage creditors and the pawn creditors may request the tax department for providing the information on tax arrears.

47. The tax authority must open a pair of receipts when detains commodities, goods or other property, and open an inventory while sealing up commodities, goods or other property.

48. In case of merging or split-up, the taxpayers should report to the tax department and clear up taxes by law. Where the taxpayers fail to clear up the taxes in case of merging, the taxpayers after merging shall resume the obligation. Where the taxpayers fail to clear up the taxes in case of split-up, the taxpayers after split-up should bear related responsibility for the obligation not performed.

49. The taxpayers with large amount tax arrears should report to the tax department before disposing their immovable property or assets of large value.

50. Where the taxpayers cause tax revenue losses to the State due to reluctance to perform their creditor right due, or giving up the creditor right, or transferring property free from charge or transferring property at a comparatively low price at the knowledge of the transferees, the tax department may exercise the authority of replacement or rescission according to the Contract Law, article 73 and 74.

When the tax department exercise the above authorities, the tax obligation and the legal responsibility shall remain existing.

51. The amount of taxes overpaid by taxpayers should be immediately refunded when found by the competent tax department. Within three years after taxpayers have settled the payment of the taxes that are found overpaid, the taxpayers may apply to the competent tax department for refund of the taxes overpaid together with the bank interest in the same period. The competent tax department should give the refund immediately after verification. Involving returning the tax overpaid from the national treasury, it should be done in accordance with the laws, administrative statute concerning the national treasury management.

52. The non-payment or underpayment of taxes by taxpayers or withholding agents due to the work of tax department may be recovered by the competent tax department within three years from the taxpayers or the withholding agents, but no late payment interest shall be charged.

The taxes unpaid or underpaid, or the taxes non-withheld or under-withheld due to the calculation errors of taxpayers or withholding agents and the late payment interest may be recovered by the competent tax department within three years. The time may be extended to 5 years for special circumstances.

The competent tax department may pursue without time limit the amount of taxes, tax payment interest or tax refund from cheating in the form of tax evasion, tax refusal or cheating for tax refund.

53. State Administration of Taxation and bureau of local taxation should collects and put into national treasury the tax collected according to the laws and regulations about tax administration division and grade taxation budget of national treasury.

To those illegal activities during tax collection examined by the auditing and financial department, the competent tax department shall collect the tax payable and the tax payment interest into the national treasury according to the grade taxation budget of national treasury and report to the above related department.

IV Tax Inspections

54. The tax department has the right to conduct the following tax inspections:

1) Inspect a taxpayer's accounting books, supporting vouchers for the accounts, statements and the relevant information, inspect a withholding agent's accounting books, supporting vouchers for the accounts and the relevant information in respect of the amount of tax withheld and remitted or collected and remitted.

2) Inspect a taxpayer's taxable commodities, goods or other property at the taxpayer's premises where production or business operations are conducted and places where goods are stored, inspect a withholding agent's operational conditions in respect of the withholding and remittance of tax or the collection and remittance of tax.

3) Order a taxpayer or withholding agent to furnish documents, evidentiary materials and relevant information pertaining to the payment of tax or the amount of tax withheld and remitted or collected and remitted.

4) Make inquiries of a taxpayer or withholding agent regarding the relevant issues and circumstances connected with the payment of tax or the amount of tax withheld and remitted or collected and remitted.

5) Inspect supporting documents, vouchers and relevant information pertaining to the taxable commodities, goods or other property transported by consignment or sent by post by a taxpayer at railway stations, docks, airports, and/or enterprises engaged in postal services and the branches thereof.

6) After approval by Director of the tax department at or above county level, the tax department may inspect the saving accounts that a taxpayer or a withholding agent has opened with banks or other financial institutions by presentation of a permit for the inspection of saving accounts which is of nationally unified form. In investigating the tax-related cases, the tax department may, upon approval by the tax offices at municipal level or above, inspect and inquire the saving deposits of the persons concerned with the cases. The materials obtained in the inspection and inquiry should not be used for other non-tax purposes.

55. The competent tax department may inspect the previous tax payments of taxpayers engaged in production and business operation. In case of the taxpayers has escaped the tax payment obligation or there are evidences showing that the taxpayer is obviously going to transfer or conceal its taxable commodities, goods and other property or taxable income, the tax department can implement the tax guaranty or enforcement measures according to the approval authority stipulated in this law.

56. The taxpayer and withholding agent must accept the tax inspection of the competent tax department carried out in accordance with the law, and report situations strictly according to the facts and offer relevant materials without rejection and concealment.

57. The competent tax department has the right to inspect situations about the taxpayers, the withholding agents and other related parties or those about tax payment or tax withheld and remitted or collected and remitted. These related units and individuals have the obligation to supply all the information and materials to the tax competent department strictly according to the facts.

58. The tax authority can take note, record, videotape, and take pictures and make duplication of situations and materials related with the case.

59. In conducting the tax inspection, the tax official sent by the tax department should show the tax inspection card and the tax inspection notice and is responsible for confidentiality for the taxpayers inspected. In case of inspection without showing the above certificate, the persons inspected have the right to refuse the inspection.

V Legal Responsibility

60. The competent tax department shall order a taxpayer to remedy any of the following acts of the taxpayer within a time limit and impose a fine less than 2000 yuan. In serious cases, a fine of an amount from RMB 2000 yuan to 10000 yuan may be imposed on the taxpayer:

1) Failure to apply for tax registration, change or cancellation of tax registration within a prescribed time limit.

2) Failure to set up or maintain accounting books, or maintain supporting vouchers for the accounts and the relevant information in accordance with the relevant provisions.

3) Failure to submit to the competent tax department the financial accounting system or financial accounting methods and the accounting software by rules.

4) Failure to report to the tax department all bank accounts by rules.

5) Failure to install and use the tax control facilities or activities to damage, arbitrarily change the tax control facilities.

Where the taxpayers fail to register, the tax department shall order them to rectify that within a certain time limit. Failure to rectify within the time limit, the tax department shall request the industrial and commercial administration department to revoke their business licenses.

Where taxpayers fail to use the tax registration documents as required by the relevant provisions, or lending, altering, damaging, trading and/or forging the tax registration certificates, a fine of 2000 yuan to 10000 yuan shall be imposed. In serious cases, the fine shall be 10000 yuan to 50000 yuan.

61. Where a withholding agent fails to set up and maintain accounting books for the tax withheld and remitted or collected and remitted, or to maintain supporting vouchers for the accounts and the relevant information in respect of the tax withheld and remitted or collected and remitted in accordance with the relevant provisions, the competent tax department shall order the withholding agent to remedy the situation within a time limit and impose a fine of an amount up to RMB 2000 yuan. If the case is serious, a fine of an amount of RMB 2000 yuan to RMB 5000yuan may be imposed on the withholding agent.

62. Where a taxpayer fails to go through the tax reports and submit the tax materials within the prescribed time limit or where a withholding agent fails to submit the report of withholding taxes or collecting taxes and relevant materials to the competent tax department within the prescribed time limit, the competent tax department shall order the taxpayer or the withholding agent to remedy it within a certain period, and may impose a fine of an amount up to RMB 2000 yuan. In serious case, a fine of an amount from RMB 2000 yuan to RMB 10000 yuan may be imposed.

63. Tax evasion means that a taxpayer fails to pay or underpays the amount of tax payable by means of forging, altering, concealing, destroying without authorization accounting books, supporting vouchers for the accounts, by overstating expenses or not stating or understating income in accounting books, non-filing returns or filing false returns after notified by the tax department to report. For tax evaders, the competent tax department shall pursue the payment of the tax evaded and impose a fine of amount of 50% to five times of the amount of tax evaded. For those constituting crime, criminal responsibility will be ascertained according to the law. Where a withholding agent fails to pay or underpays the tax which has been withheld or collected by the means as mentioned above, the competent tax department shall pursue the payment of the amount of tax the withholding agent has failed to pay or underpaid and impose a fine of 50% to five times of the amount of tax not paid or underpaid. For those constituting crime, criminal responsibility will be ascertained according to the law.

64. Where taxpayers or withholding agents forge tax base, the competent tax department shall order them to rectify that and impose a fine up to 50000 yuan. Where taxpayers do not file tax returns, do not pay or pay less taxes payable, the competent tax department shall pursue the taxes and late payment interest unpaid or underpaid and impose a fine of 50% to five times of the taxes unpaid or underpaid.

65. Where the taxpayers owing taxes hinder the collection of tax arrears by the tax department by transferring or concealing the property, the tax department shall pursue the tax and collect late payment interest and impose a fine of 50% to five times of the tax arrears. For those constituting crime, criminal responsibility will be ascertained according to the law.

66. For cheating for tax refund for export by means of falsely declaring exports or other fraudulent means, the competent tax department shall pursue the collection of the tax refund cheated and impose a fine of one to five times of the tax refund cheated. For those constituting crime, criminal responsibility will be ascertained according to the law. The tax department may suspend the tax refund to the enterprises cheating for export tax refund from the State within the specified time period.

67. The refusal of tax payment refers to the refusal to pay tax by means of violence or menace. For the taxpayers refusing to pay tax, criminal responsibility will be ascertained according to the law. The competent tax department shall impose a fine of one to five times the amount of the tax refused in addition to collecting the refused tax and tax payment interest on those no serious case to constitute a crime.

68. Where the taxpayers or the withholding agents who do not pay or underpay the tax payable or remitted within the time limit as ruled fail to pay the tax within a new time limit as ordered by the competent tax department, the competent tax department may impose a fine of 50% up to fives times of the tax unpaid or underpaid in addition to recover the tax unpaid or underpaid by enforcement measures in accordance with the article 40.

69. Where the withholding agents fail to withhold collect the tax that should be withheld or collected, the tax department shall pursue the tax from the taxpayers and impose on the withholding agents a fine of 50% up to 3 times of the tax not withheld or collected.

70. Where the taxpayers or the withholding agents avoid and refuse the inspections of the tax department or in other way, the competent tax department shall order them to rectify that and impose a fine up to 10000 yuan. In serious cases, the fine may be from 10000 yuan to 50000yuan.

71. The competent tax department shall destroy the invoices illegally printed in violation of article 22 and confiscate the illegal gains and the tools for printing in addition to a fine imposed between 10000 yuan and 50000 yuan. For those constituting crime, criminal responsibility will be ascertained according to the law.

72. Where the taxpayers and withholding agents engaged in production and business operation conduct the activities against this law and reject the management by the competent tax department, the tax department shall take over their invoices or stop selling invoices to them.

73. Where the taxpayer's or the withholding agent's account banks or other financial institutions refuse the inspections of the tax department on the taxpayer's or withholding agent's deposit accounts, or refuse to perform the decision of the tax department of freezing the deposits and deducting the taxes or help the taxpayer or withholding agent with transferring of deposits after receiving the written notice from the tax department, which result in loss of tax revenue, the tax department shall impose a fine of 100000 yuan to 500000 yuan on them and impose a fine of 1000 yuan to 10000 yuan on the competent staff and other persons directly responsible for that.

74. The tax offices may decide other ruled administrative punishments and fine below 2000 yuan.

75. The tax related revenue from the fines by the tax department and the judicial departments should all be remitted to the State Treasury of different budgetary levels.

76. Where the tax department arbitrarily change the tax administration and collection scope and the level of the revenue in violation of the rules shall be ordered to rectify within a time limit and the chief person and other persons directly responsible shall be demoted or removed from the resent position.

77. The taxpayers and withholding agents suspected of being involved in the crime will be transferred to judicial department by the tax department and pursued criminal responsibility in violation of article 63, 65, 66, 67 and 71. The tax officials who practice favoritism and embezzlement in failure to hand over tax-related criminal offences causing serious consequences shall be pursued criminal responsibility.

78. Those collecting taxes without authorization of the tax department shall be ordered to return the property collected and shall be imposed administrative sanctions or penalty. Those causing loss of legal right and interest of other persons shall bear the responsibility of compensation. Those constituting an offence shall be pursued criminal responsibility.

79. The tax department and tax staff seal up or detain the house and items necessary for life of the taxpayer himself and the family supported by him shall be ordered to return the house and items and shall be imposed administrative disciplinary sanction. If that constitutes an offence, criminal responsibility shall be pursued.

80. Where the tax officials induce or assist taxpayers or withholding agents in committing an offence of article 63, 65 and 66 in collusion with the taxpayers or withholding agents, the penalty of joint offence shall be imposed. Those who do not constitute an offence shall be imposed administrative disciplinary sanction.

81. The tax officials who accept or ask by use of post for property or other unfair interest from taxpayers or withholding agents, which constitutes an offence shall be pursued criminal responsibility. Those not constituting an offence shall be imposed administrative disciplinary sanction.

82. Where the taxable payment unpaid or underpaid by the tax officials who practice favoritism and embezzlement or neglect their duties and cause heavy losses of the State revenue shall be pursued criminal responsibility. Those who do not constitute an offence shall be imposed administrative disciplinary sanctions. Tax officials who abuse their powers and deliberately create difficulties for taxpayers and withholding agents shall be removed from the tax job position and be imposed administrative sanctions. The tax staff who retaliates against the taxpayers and withholding agents and other persons accusing or disclosing the tax violating activities shall be imposed administrative sanctions. Where it constitutes an offence, criminal responsibility shall be pursued. Where tax officials overvalue or undervalue the taxable production of agriculture tax by violating laws and administrative regulations, resulting in overpayment or underpayment of tax and infringement of the legal rights and interest of peasants or the State interest, they shall be pursued the criminal responsibility for those committing a crime or shall be imposed administrative sanctions for those not committing a crime.

83. Those collecting taxes earlier, delaying tax collections or apportioning taxes in violation of laws and administrative regulations shall be ordered to rectify by the higher department or the administrative supervisory department. The chief person and other persons directly responsible for that shall be imposed administrative sanctions by law.

84. Where the decision of starting or stopping a kind of tax or tax reduction, tax exemption, tax refund or tax repayment and other decisions contrary to tax laws, administrative regulations and rules have been made in violation of laws and regulations, the chief person and the persons directly responsible for that shall be pursued administrative responsibility by the higher tax department in addition to abolishing the arbitrary decisions, collecting the taxes that should have been collected and returning the taxes that should not have been collected. In case of an offence, criminal responsibility shall be pursued.

85. Where the tax staff fail to dodge by law in tax collection or investigating tax related violating cases, the chief person directly responsible and other persons directly responsible shall be imposed administrative sanctions.

86. The behaviors in violation of tax laws and administrative regulations that should be penalized shall not be imposed administrative penalty unless they are found within five years.

87. For failure to keep confidential for the taxpayers, withholding agents or reporters, the chief person and other persons directly responsible shall be imposed administrative sanctions by their offices or relevant units.

88. In case of dispute occurring between the taxpayers, withholding agents or tax payment guarantors and the competent tax department, the taxes or advance payment of taxes and late payment interest or guaranty should be first paid on the basis of the assessment by the competent tax department, and then may apply to the higher level competent tax department for review. In case of disagreement to the administrative review, they may appeal to the People's Court by law. If the party concerned objects to the decision of penalty, the tax enforcement and guaranty measures taken by the tax department, the party concerned may apply for administrative review or appeal to the People's Court by law. Where the party concerned does not apply for tax administrative review of the penalty decision by the tax department or institutes tax administrative appeal or performs the decision, the competent tax department may take the tax enforcement measures mentioned in article 40 or apply to the People's Court for enforcement measures.

VI Supplementary Articles

89. The taxpayers and withholding agents may entrust a tax agent to handle with all the tax-related matters.

90. The State Council shall stipulate the management and collection methods of Farmland Occupation Tax, Deed Tax, Agriculture Tax and Animal Husbandry Tax separately. The management of collecting Customs Duties and tax payment collected by the customs shall be conducted in accordance with the laws and regulations.

91. Where the contract and agreement regarding taxation signed between the People's Republic of China and other countries are different from this law, it should be down in accordance with the detailed contract and agreement.

92. Where the regulations stipulated before the implementation of this law are against this law, we should do in accordance with this law.

93. The State Council shall draw up detailed regulations according to this law.