关键词：Securities

(Standing Committee, National People's Congress: 4 September 1992)



   



CHAPTER 1 CENTRAL PROVISIONS

   

Article 1  This law has been formulated with a view to strengthening the administration of tax collection, guaranteeing the tax revenue of the State and safeguarding the legitimate rights and interests of the taxpayers.



Article 2  This Law shall apply to the administration of tax collection in respect of all taxes collected by the tax authorities in accordance with tax laws.



Article 3  The collection of tax or the cessation thereof, the reduction, exemption and refund of tax as well as the payment of tax underpaid shall be implemented in accordance with the law or the relevant provisions stipulated in administrative regulations formulated by the State Council, provided that the State Council is authorized by the law to formulate the relevant provisions.

 

No governmental organs, entities or individuals may be permitted to make decisions without authorization regarding the collection of tax or the cessation there of, the reduction, exemption or refund of tax, or the payment of tax underpaid in violation of the law or the administrative regulations.



Article 4    Entities or individuals which are obligated to pay tax in accordance with the law or the administrative regulations are the taxpayers.

   

Entities or individuals which are obligated to withhold and remit tax or collect and remit tax in accordance with the law or the administrative regulations are the withholding agents.



Taxpayers or withholding agents must pay tax, or withhold and remit tax or collect and remit tax in accordance with the law or the administrative regulations.



Article 5  The competent tax departments under the State Council shall be in charge of the administration of tax collection for the whole country.

   

The local people's governments at various levels shall strengthen their leadership in the administration of tax collection within their jurisdictions and support the tax authorities in carrying out their duties and accomplishing their tasks of tax collection in accordance with the law.



The various departments and entities concerned shall support and assist the tax authorities in carrying out their duties in accordance with the law.



No entities or individuals shall impede the tax authorities from carrying out their duties in accordance with the law.

   

Article 6  Tax officials must implement the law impartially and devote themselves to their duties. They shall not extort or take bribes, practice favouritism, commit malpractice, neglect their duties, or fail to collect or under collect the amount of tax payable.  Nor shall they abuse their powers to over collect tax or deliberately create difficulties for taxpayers and withholding agents.



Article 7    Any entity or individual shall have the right to report any acts committed in violation of the law or the administrative regulations.  The tax authorities shall maintain confidentiality in respect  of  the informants and grant them rewards in accordance with the relevant provisions.



Article 8    The "tax authorities" referred to in this Law means the tax bureau at various levels and their sub-bureau and tax stations.



CHAPTER II-TAX ADMINISTRATION
   

SECTION 1 -TAX REGISTRATION
   

Article 9    Enterprises, branches in other jurisdictions established by the enterprises, sites engaged in production or business operations, individual households engaged in industry and commerce as well as institutions engaged in production or business operations  (hereinafter collectively referred to as "taxpayers engaged in production or business operations") shall, within 30 days after the receipt of a business licence, report to and complete tax registration formalities with the tax authorities on presentation of the  relevant  supporting  documents.  Upon examination and verification of the supporting documents, the tax authorities shall issue tax registration certificates.

   

The scope and methods for tax registration formalities, which shall be carried out by taxpayers other than those as prescribed in the preceding Paragraph, shall be formulated by the State Council.



Article 10  Where a change occurs in the contents of tax registration of a taxpayer engaged in production or business operations, the taxpayer concerned shall, within 30 days after the date of completing the formalities for such change in the business registration with the Administration for Industry and Commerce or prior to the submission of an application  for  cancellation  of  business  registration  to  the Administration for Industry and Commerce, report to and complete the formalities for the change or cancellation of tax  registration  with  the tax authorities on presentation  of  the  relevant  supporting  documents.



Article 11    Taxpayers shall use tax registration certificates in accordance with the rulings formulated by the competent tax departments under the State Council. The tax registration certificates shall not be lent, altered, damaged, traded or forged.



SECTION 2- ADMINISTRATION OF ACCOUNTING BOOKS AND SUPPORTING VOUCHERS

   

Article 12  Taxpayers engaged in production or business operations or withholding agents shall establish accounting books in accordance with the rulings formulated by the authorized fiscal or tax department under the State Council, keep records based on legitimate and valid vouchers and conduct accounting. Individual households, engaged in industry and commerce which are indeed unable to keep accounting books may keep no accounting books after approval by the tax authorities.



Article 13    The financial and accounting systems or methods of a taxpayer engaged in production or business operations shall be submitted to the tax authorities for their records.



Where the financial and accounting systems or methods of a taxpayer engaged in production or business operations are contradictory to the relevant tax rules formulated by  the  State  Council  or  the  authorized fiscal or tax departments under the State  Council,  the  calculation  and payment of tax shall be conducted in  accordance  with  the  relevant  tax rules formulated by the State Council or  the  authorized  fiscal  or  tax departments under the State Council.



Article 14    Invoices must be printed by enterprises designated by the authorized tax departments of the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government.  No enterprises are permitted to print invoices without authorization by the competent tax departments of the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government.



The measures regarding the administration of invoices shall be formulated by the State Council.



Article 15  Taxpayers engaged in production or business operations or withholding agents  must  maintain  accounting  books,  supporting  vouchers  for  the accounts, tax payment receipts and other relevant information  within  the period prescribed by the authorized fiscal or tax  departments  under  the State Council.

Accounting books, supporting vouchers for the accounts, tax payment receipts and other relevant information shall not be forged, revised or damaged without approval.



SECTION 3- FILING TAX RETURNS
   

Article 16  Taxpayers must fulfill tax filing requirements,  submit  tax  returns, financial and accounting statements as well as the relevant information on tax payments required by the tax  authorities  based  on  practical  needs within the time limit for tax reporting  prescribed  in  the  law  or  the administrative regulations, or as determined by  the  tax  authorities  in accordance with the law or the administrative regulations.



Withholding agents must submit reporting schedules on taxes withheld and  remitted  or  collected  and  remitted  as  well  as  other  relevant information required by  the  tax  authorities  to  be  submitted  by  the withholding agents based on practical needs within the time limit for  tax reporting prescribed in the law or the administrative regulations,  or  as determined by the tax authorities  in  accordance  with  the  law  or  the administrative regulations.



Article 17  Where a taxpayer or withholding agent is unable to file  tax  returns or to submit reporting schedules on  the  tax  withheld  and  remitted  or collected and remitted within the prescribed  time  limit,  it  may,  upon examination and approval by the tax authorities, extend the time  to  file the tax returns or submit the reporting schedules.



CHAPTER III-TAX COLLECTION
   

Article 18  The tax authorities shall collect tax in accordance with the law or the administrative regulations. They shall not collect, cease to collect, over collect or under collect tax in violation of the law or the administrative regulations.



Article 19    Withholding agents shall fulfill their obligations of withholding or collecting tax in accordance with the law or  the  administrative regulations. The tax authorities shall not impose any tax  withholding or collection  requirements  on  entities  and  individuals  which  are  not obligated to withhold or collect tax in accordance with  the  law  or  the administrative regulations.



A taxpayer shall not prevent a withholding agent from fulfilling its obligations of withholding or collecting tax in accordance with the law. In the  event  that  the  taxpayer  prevents  a  withholding  agent  from fulfilling its obligations, the withholding agent  shall  promptly  report the case to the tax authorities for their action.



The tax authorities shall pay a handling fee  to  withholding  agents for  withholding  or  collecting  tax  in  accordance  with  the  relevant provisions.

   

Article 20  A taxpayer or withholding agent shall pay or  remit  tax  within  the time limit prescribed by the law or the administrative regulations, or  as determined by the tax authorities  in  accordance  with  the  law  or  the administrative regulations. Where a taxpayer is unable to pay  tax  within the  prescribed  time  limit  as  a  result  of  encountering  special difficulties, it may, upon approval  of  a  tax  bureau  (or  a  sub bureau thereof) above the county level, defer the payment of tax for a period  of not more than three months.



Where a taxpayer fails to pay tax within the time limit as prescribed in the preceding Paragraph or a  withholding  agent  fails  to  remit  tax within the time limit as prescribed in the preceding  Paragraph,  the  tax authorities shall, in addition to ordering  the  taxpayer  or  withholding agent to pay or remit the tax within the prescribed time limit,  impose  a fine on a daily basis at the rate of 0.2% of the amount of tax in arrears, commencing on the day the tax payment is in default.



Article 21  A taxpayer may submit a written  application  for  tax  reduction  or exemption to the tax  authorities  in  accordance  with  the  law  or  the administrative regulations.



Applications for tax reduction or exemption shall be examined and approved by the authorities designated for examination and approval of tax reduction or exemption as prescribed in the law or the administrative regulations. The decisions on tax reduction or  exemption  made  by  the people's governments at various local levels, the competent departments of the people's  governments  at  various  levels,  entities  or  individuals without authorization in  violation  of  the  law  or  the  administrative regulations shall be null and void.



Article 22  When the tax authorities collect tax payments and the tax withheld or collected by withholding agents, tax payment receipts must be issued to the taxpayers.



Article 23  In the event that one of the following circumstances should arise in respect of a taxpayer, the tax authorities shall have the right to assess the amount of tax payable by the taxpayer:



(1) accounting books are, in accordance with this Law, not kept;

(2) accounting books are required to be kept by this Law but have not been kept;

(3) 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.

(4) a taxpayer who is obligated to pay tax fails to  go  through  tax filing procedures within a prescribed time limit and,  after  having  been ordered by the tax authorities to file tax returns within  the  prescribed time limit, still fails to file the tax returns within the prescribed time limit.

   

Article 24  The receipt or payment of charges or fees in business transactions between an enterprise or institutions or sites engaged in production or business operations established in China by a foreign enterprise, and its associated enterprises, shall be made at arm's length prices.  Where the receipt or payment of charges or fees is not made at arm's length prices and results in a reduction of the taxable income, the tax authorities shall have the right to make reasonable adjustments.



Article 25  Where an entity or individual engages in business operations without a business licence, the case shall be handled by the Administration for Industry and Commerce in accordance with the law.  In  addition,  the  tax authorities shall assess the amount  of  tax  payable  by  the  entity  or individual and order the same to make the tax payments. Should the  entity or individual refuse to make the tax payments,  the  tax  authorities  may impound commodities or goods, the value of  which  is  equivalent  to  the amount of tax payable. If the amount of tax  payable  is  paid  after  the goods or  commodities  have  been  impounded,  the  tax  authorities  must immediately remove the lien and return the impounded commodities or  goods to the entity or individual. If the amount of tax payable is still not paid after the impound, the commodities or goods which have been impounded may, upon approval of the commissioner of a tax bureau (or a sub bureau there of) above the county level, be sold by auction and the proceeds from the auction may be used to make good the amount of tax payable.

   

Article 26  Where the tax authorities have grounds for deeming  that  a  taxpayer engaged in production or business operations has  evaded  taxes,  the  tax authorities 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 the tax authorities discover that there are evidences that the taxpayer has transferred or concealed its taxable commodities, goods and other property, or taxable income within the prescribed time limit, the tax authorities may order the taxpayer to provide a guaranty for tax payment. If the taxpayer is unable to provide a guaranty for tax payment, the tax authorities may, upon approval of the commissioner of a tax bureau (or a sub bureau there of) above the county level, implement the following measures for retaining tax revenue:

   

(1) notify in writing the banks or other financial institutions  with which the taxpayer  has  opened  an  account  to  stop  payment  from  the taxpayer's deposits of an amount equivalent to the amount of  tax  payable on a temporary basis.

(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 payments within the time limit as prescribed in the preceding Paragraph, the tax authorities must immediately lift the conditions for retaining tax revenue.  Should  the taxpayer fail to make the tax payments  at  the  expiration  of  the  time limit, the tax authorities may, upon approval of the commissioner of a tax bureau (or a sub bureau thereof) above the county level, notify in  writing the banks or other financial institutions  with  which  the  taxpayer  has opened an account to withhold  and  remit  the  amount  of  tax  from  the taxpayer's deposits from which payment has been  stopped  on  a  temporary basis, or sell by auction the commodities, goods or  property  which  have been impounded and use the proceeds from the  auction  to  make  good  the amount of tax payable.



Where the legitimate interests of a taxpayer are jeopardized  due  to the implementation of inappropriate measures for retaining tax revenue  or to the failure on the part of the tax authorities to lift the measures for retaining tax revenue immediately after the  taxpayer  has  made  the  tax payments within the prescribed  time  limit,  the  tax  authorities  shall assume compensation responsibility for damages.

   

Article 27  Where a taxpayer engaged in production or business  operations  or  a withholding agent 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 tax authorities shall order them to pay the tax within a prescribed time limit. In the case of  failure  to pay the tax within the prescribed time limit,  the  tax  authorities  may, upon approval of the commissioner of a tax bureau (or  a  sub bureau  there of) above the county level, implement the following mandatory  enforcement measures:



(1) notify in writing the banks or other financial institutions  with which the taxpayer, withholding agent or tax payment guarantor has  opened an account to withhold and remit the amount of tax from its deposits.

(2) impound, seal up or sell by auction the  commodities,  goods,  or other  property  of  the  taxpayer,  withholding  agent  or  tax  payment guarantor, the value of which is equivalent to the amount of tax  payable, and to use the proceeds from the auction to make good the  amount  of  tax payable.

   

At the same time as implementing  the  mandatory  measures,  the  tax authorities shall implement the relevant mandatory measures to collect the fine on  tax  in  arrears  which  has  not  been  paid  by  the  taxpayer, withholding agent or tax payment guarantor.



Article 28  Should a taxpayer who has not paid the amount of tax payable need  to leave China, it shall settle the  amount  of  tax  payable  or  provide  a guaranty to the  tax  authorities  before  leaving  the  country.  If  the taxpayer neither  settles  the  amount  of  tax  payable  nor  provides  a guaranty, the tax authorities may notify the authorities  responsible  for exit to prevent the taxpayer from leaving the country.



Article 29  When impounding commodities, goods or other property, the tax authorities must issue a receipt for the items impounded. When sealing up commodities, goods or other property, the tax authorities must write out a list of these items.



Article 30  After determining that a taxpayer has paid an amount of tax in excess of the tax payable, the tax authorities shall immediately refund the excess amount to the taxpayer.  Where a taxpayer  discovers  that  it  has paid an amount of tax in excess of the tax payable within three years from the date the tax payment has been made, it  may  claim  a  refund  of  the excess amount of tax  from  the  tax  authorities.  Upon examination and verification of the case, the tax authorities shall immediately refund the excess amount of tax.

   

Article 31  Should a taxpayer or withholding agent fail to pay  tax  or  underpay tax as a result of the responsibilities of the tax  authorities,  the  tax authorities may, within three years, require the taxpayer  or  withholding agent to pay the tax in arrears, but they shall not impose any fine on the tax in arrears.

    Should a taxpayer or withholding agent fail to pay tax or underpay tax through its own faults, such as making an erroneous calculation, the tax authorities may, within three years, pursue the collection of the tax in arrears. If special circumstances exist, the period for pursuing the collection of the tax in arrears may be extended to ten years.



CHAPTER IV-TAX INSPECTION
   

Article 32  The tax authorities shall have the right to conduct tax inspection as follows:



(1) to inspect a taxpayer's accounting books, supporting vouchers for the accounts, statements  and  the  relevant  information;  to  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) to inspect a  taxpayer's  taxable  commodities,  goods  or  other property at the taxpayer's places where production or business  operations are conducted and places where goods are stored; to inspect a  withholding agent's  operational  conditions  in  respect  of  the  withholding  and remittance of tax or the collection and remittance of tax.

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

(4) to 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)  to inspect  supporting  documents,  vouchers  and  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, enterprises engaged in postal services and the branches thereof.

(6) upon approval of the commissioner of a tax bureau (or a sub bureau thereof) above the  county  level,  to  examine  and  verify  the  deposit accounts that a taxpayer engaged in production or business operations or a withholding agent has opened with banks or other  financial  institutions, on presentation of a permit for the inspection of deposit  accounts  which is of a nationally  unified  form;  to  examine  and  verify  the  savings deposits of a taxpayer  engaged  in  production  or  business  operations, provided, however, that the saving  deposits  have  been  subject  to  the verification of the regional office of a county or municipal sub branch  or municipal branch of a bank and  such  regional  office  has  designated  a savings section thereof to provide the relevant information.



Article 33  A taxpayer or withholding  agent  must  subject  itself  to  the  tax inspection conducted by the tax authorities in accordance  with  the  law, report the circumstances accurately and provide the relevant  information, and shall not refuse to cooperate or conceal any facts.

   

Article 34  When the tax authorities conduct tax inspection  in  accordance  with the law, the relevant departments and  units  shall  provide  support  and assistance  and  accurately  report  the  circumstances  of  taxpayers, withholding agents and other parties concerned in respect of  the  payment of tax and the amount of  tax  withheld  and  remitted  or  collected  and remitted, and furnish the relevant information and evidentiary  materials.



Article 35  When investigating a tax case in violation of the law, the tax authorities may record, tape-record, video-tape, photograph and reproduce the relevant circumstances and information in respect of the case.



Article 36  When conducting  tax  inspection,  the  officials  sent  by  the  tax authorities shall produce tax  inspection  identity  cards  and  shall  be responsible  for  maintaining  confidentiality  for  the  persons  under investigation.



CHAPTER V-LEGAL LIABILITIES
   

Article 37  The tax authorities shall order a taxpayer to remedy any of the following acts committed by the taxpayer within a time limit.  Should the taxpayer fail to remedy it within the time limit, the tax authorities may impose a fine of not more than Renminbi 2000 Yuan on the taxpayer. If the case is serious, the tax authorities may impose a fine of an amount from Renminbi 2000 Yuan to Renminbi 10000 Yuan on the taxpayer.



(1) failure to apply for tax registration, change or cancellation  of tax registration within a prescribed time limit;

(2) failure  to  keep  or  maintain  accounting  books,  or  maintain supporting vouchers for the  accounts  and  the  relevant  information  in accordance with the relevant provisions;

(3) failure to  furnish  reports  on  the  financial  and  accounting systems or the financial and accounting methods to the tax authorities for possible reference use in accordance with the relevant provisions.



Article 38  Where a withholding agent fails to keep 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 tax authorities  shall  order the withholding agent to remedy the situation within a time limit.  Should the withholding agent fail to remedy the situation within the time limit, the tax authorities may impose a fine of not more than Renminbi 2000 Yuan on the withholding agent. If the case is serious, the tax authorities may impose a fine of an amount from Renminbi 2000 Yuan to Renminbi 5000 Yuan on the withholding agent.



Article 39  Where a taxpayer fails to fulfill tax  filing  requirements  within  a prescribed time limit or a withholding agent fails  to  furnish  reporting schedules on the tax withheld and remitted or collected  and  remitted  to the tax authorities within a prescribed time limit,  the  tax  authorities shall order the taxpayer or withholding  agent  to  remedy  the  situation within the prescribed time limit and may impose a fine of  not  more  than Renminbi 2000 Yuan on  the  taxpayer  or  withholding  agent.  Should  the taxpayer or withholding agent fail to  remedy  the  situation  within  the prescribed time limit, the tax authorities  may  impose  a  fine  of  over Renminbi 2000 Yuan but under  Renminbi  10000  Yuan  on  the  taxpayer  or withholding agent.

   

Article 40  "Evasion of tax" means that a taxpayer fails to pay or underpays  the amount of tax payable through  the  adoption  of  the  means  of  forging, revising, concealing or destroying without authorization accounting  books or supporting vouchers for the accounts, or of overstating expenses or not stating  or  understating  income  in  accounting  books,  or  of  filing fraudulent tax returns. Where the amount of tax evaded accounts  for  more than ten percent of the amount of tax payable and is over  Renminbi  10000 Yuan, or where the taxpayer evades tax again after having been subject  to administrative punishment imposed by the tax authorities twice as a result of tax evasion, the tax authorities shall, in  addition  to  pursuing  the payment of tax which has been evaded by the taxpayer, impose a  punishment on the taxpayer in accordance with the provisions set forth in  Article  1 of the Supplementary Provisions Concerning the Imposition of Punishment in Respect of Offenses of Evasion of Tax and Refusal to Pay  Tax.  Where the amount of tax evaded is under Renminbi 10000 Yuan or accounts for not more than ten percent of the amount of tax payable, the tax  authorities shall pursue the payment of the tax evaded and impose a fine of  not  more  than five times the amount of tax evaded.



Where a withholding agent fails to pay or underpays the tax which has been withheld or collected through the adoption of the means as  specified in the preceding Paragraph, and where the amount of  tax  evaded  accounts for more than ten percent of  the  amount  of  tax  payable  and  is  over Renminbi 10000 Yuan, a punishment shall  be  imposed  on  the  withholding agent in accordance with the provisions stipulated in  Article  1  of  the Supplementary  Provisions  Concerning  the  Imposition  of  Punishment  in Respect of Offenses of Evasion of Tax and Refusal to Pay  Tax.  Where  the amount of tax evaded is under Renminbi 10000 Yuan or accounts for not more than ten percent of the amount of tax payable, the tax  authorities  shall pursue the payment of the amount of tax the withholding agent  has  failed to pay or underpaid and impose a fine of not  more  than  five  times  the amount of tax which has not been paid or underpaid.



Article 41  Where a taxpayer who has failed to pay the amount of tax  payable  by means of transferring or concealing the property, resulting in failure  on the part of  the  tax  authorities  to  pursue  the  payment  of  the  tax underpaid, and where the amount of the  tax  underpaid  is  over  Renminbi 10000 Yuan, the tax authorities shall, in addition to pursuing the payment of the tax underpaid, impose a punishment on the  taxpayer  in  accordance with the provisions set forth in Article 2 of the Supplementary Provisions Concerning the Imposition of Punishment in Respect of Offenses of  Evasion of Tax and Refusal to Pay Tax. Where the amount of tax underpaid is  under Renminbi 10000 Yuan, the tax authorities shall pursue the payment  of  the tax underpaid, and impose a fine of not more than five times the amount of tax underpaid.

   

Article 42  Where  an  enterprise  or  institution  commits  an  illegal  act  as specified in Article 40 and 41 of this Law and  such  act  constitutes  an offence, a punishment shall be imposed in accordance with  the  provisions set forth in Article 3 of  the  Supplementary  Provisions  Concerning  the Imposition of Punishment in Respect of Offenses  of  Evasion  of  Tax  and Refusal to Pay Tax. Where such act does not constitute an offence, the tax authorities shall pursue the payment of the amount of tax  the  enterprise or institution has failed to pay or underpaid, and impose a  fine  of  not more than five times the  amount  of  tax  which  has  not  been  paid  or underpaid.



Article 43  Where a taxpayer fails to pay or underpays the amount of tax payable by offering a bribe to tax officials, a punishment shall be imposed in accordance with the provisions set forth in Article 4 of the Supplementary Provisions Concerning the Imposition of Punishment in Respect of Offenses of Evasion of Tax and Refusal to Pay Tax.



Article 44  Where an enterprise or institution fraudulently  obtains  tax  refund for export from the State through the adoption of deceptive means such  as fraudulently declaring the commodities it produces or operates  as  export goods, and where the amount of tax  refund  which  has  been  fraudulently obtained is over Renminbi  10000  Yuan,  the  tax  authorities  shall,  in addition to pursuing the repayment of the tax  refund  the  enterprise  or institution has fraudulently obtained, impose a punishment  in  accordance with the provisions  set  forth  in  Paragraph  1  of  Article  5  of  the Supplementary  Provisions  Concerning  the  imposition  of  Punishment  in Respect of Offenses of Evasion of Tax and Refusal to Pay  Tax.  Where  the amount of tax refund for export which has been fraudulently obtained  from the State is under Renminbi 10000 Yuan, the tax authorities  shall  pursue the repayment  of  the  tax  refund  the  enterprise  or  institution  has fraudulently obtained, and impose a fine of not more than five  times  the amount of tax refund which has been fraudulently obtained.



Where an entity or individual other than those as prescribed  in  the preceding Paragraph fraudulently obtains tax refund for  export  from  the State, the tax authorities shall, in addition to pursuing the repayment of the tax refund the entity or individual has fraudulently obtained,  impose a punishment on the entity or individual in accordance with the provisions stipulated in Paragraph 2 of Article 5  of  the  Supplementary  Provisions Concerning the Imposition of Punishment in Respect of Offenses of  Evasion of Tax and Refusal to Pay Tax. Where the amount of tax  refund  which  has been fraudulently obtained is so small as not to  constitute  an  offence, the tax authorities shall pursue the  repayment  of  the  tax  refund  the entity or individual has fraudulently obtained, and impose a fine  of  not more than five times the amount of tax refund which has been  fraudulently obtained.

   

Article 45  In the case of refusal to pay tax, which means the refusal to pay tax by using violence or menace, the tax authorities  shall,  in  addition  to pursuing the payment of the amount of tax a taxpayer has refused  to  pay, impose a punishment on the taxpayer in accordance with the provisions  set forth in  Paragraph  1  of  Article  6  of  the  Supplementary  Provisions Concerning the Imposition of Punishment in Respect of Offenses of  Evasion of Tax and Refusal to Pay Tax. Where the case is so trivial that no offence has been committed, the tax authorities shall pursue the payment of the amount of tax the taxpayer has refused to pay, and impose a fine of not more than five times the amount of tax the taxpayer has refused to pay.



In the case of refusal to pay tax by using violence  which  causes  a person to suffer from serious injury or death, a heavy  penalty  shall  be imposed as that on an offence of assault or manslaughter, and a fine shall be imposed in accordance with the provisions set forth in Paragraph  2  of Article 6 of the Supplementary Provisions  Concerning  the  Imposition  of Punishment in Respect of Offenses of Evasion of Tax and Refusal to Pay Tax.



Article 46  Where a taxpayer engaged in production or business  operations  or  a withholding agent which has been ordered by the tax  authorities  to  pay, within a time limit, the amount of tax which should be  paid  or  remitted but has not been paid or underpaid within a prescribed time  limit,  fails to pay the amount of tax within the time limit, the tax  authorities  may, in addition to pursuing the payment of the amount of tax the  taxpayer  or withholding agent has failed to pay or underpaid through the  adoption  of the mandatory measures as prescribed in Article 27 of this Law,  impose  a fine of not more than five times the amount of tax which has not been paid or underpaid.



Article 47  A withholding agent which fails to withhold or collect the amount  of tax which should have been withheld or collected shall pay the  amount  of tax which should have been withheld or collected but has not been withheld or collected, except in the case where the withholding agent has  promptly reported to the tax authorities the situation regarding the refusal on the part of a taxpayer to have  the  amount  of  tax  withheld  or  collected.



Article 48  Where invoices are printed illegally in violation of  the  provisions stipulated in Article 14 of this Law, the tax  authorities  shall  destroy the invoices which have been illegally  printed,  confiscate  the  illicit gains, and impose a fine.

   

Article 49  The administrative punishment as prescribed in this Law shall be decided by a tax bureau (or a sub bureau thereof) above the county level. Where a fine of not  more  than  Renminbi  1000  Yuan  is  imposed  on  an individual household engaged in industry and  commerce  or  an  entity  or individual which conducts business operations without a business  licence, the decision shall be made by the tax station concerned.



Upon receipt of a fine, the tax authorities shall issue a receipt.



Article 50  Where violence or menace is  used  to  obstruct  tax  officials  from performing their duties in accordance with the law,  criminal  liabilities shall be pursued in accordance with the provisions set  forth  in  Article 157 of the Criminal Law. Where tax officials are refused or obstructed from performing their duties in accordance with the law but no violence or menace has been used, a punishment shall be imposed by the public security authorities pursuant to the provisions stipulated in the Law Concerning the Administration of Public Security and Punishments.



Article 51  The People's Courts and the tax authorities shall turn over the gains from fines and confiscations they have received to the state treasury.



Article 52  Where tax officials collude with taxpayers or withholding agents, or instigate or assist the same to commit the offenses specified in Article 40, 41, 42 and 44 of this Law, a punishment shall be imposed in accordance with the provisions regarding joint offenses stipulated in the Criminal Law. Where no offence is committed, administrative punishment shall be imposed.



Article 53  Where tax officials take advantage of their positions and  powers  to accept or extort the property of taxpayers or withholding agents, and such acts constitute an offence, criminal  liabilities  of  the  tax  officials shall be investigated based on an offence of bribery. Where such acts do not constitute an offence, administrative sanctions shall be imposed on the tax officials.



Article 54  Where tax officials neglect their  duties  and  fail  to  collect  or under collect the correct amount of tax, causing enormous losses in the tax revenue of the State, criminal liabilities of the tax officials  shall  be investigated in accordance with the provisions set forth in Article 187 of the  Criminal  Law.  Where such acts do not constitute an offence, administrative sanctions shall be imposed on the tax officials.

     

Tax  officials  who  abuse  their  powers  and  deliberately  create difficulties for taxpayers and withholding  agents  shall  be  subject  to administrative sanctions.

   

Article 55  Where decisions regarding the collection of tax or the cessation thereof, the reduction, exemption or refund of tax, or the payment of tax underpaid have been made without authorization in violation of the law or the administrative regulations, the decisions so made shall be revoked in accordance with this Law. In addition, the amount of tax underpaid shall be collected and the amount of tax over collected shall be refunded.  The administrative liabilities of the officials directly responsible shall also be investigated by the authorities at a higher level.



Article 56  In the case of tax disputes with the  tax  authorities,  a  taxpayer, withholding agent or tax payment guarantor must first  pay  or  remit  the amount of tax and fines on tax in arrears in accordance with  the  law  or the administrative regulations, and there after may, within 60  days  from the date of receipt of a payment receipt from the tax  authorities,  apply to the tax authorities at a higher  level  for  reconsideration.  The  tax authorities at a higher level shall, within  60  days  from  the  date  of receipt of the application for  reconsideration,  make  a  decision  after reconsideration. In the case of  objection  to  the  decision  made  after reconsideration, legal proceedings may be  instituted  with  the  People's Court within 15 days from the date of receipt of the decision  made  after reconsideration.

   

Where a party concerned objects to a sanction decision  made  by  the tax authorities or to the mandatory measures or measures for retaining tax revenue implemented by the same, it may, within 15 days from the  date  of receipt of the sanction notice or the date the tax  authorities  implement the mandatory measures or measures for retaining tax revenue, apply for  a reconsideration to the authorities one level higher than  the  authorities which have  made  the  sanction  decision  or  implemented  the  mandatory measures or measures for retaining tax revenue.  If the party concerned objects to the decision made upon reconsideration, it may, within 15 days from the date of receipt of the reconsideration decision, institute legal proceedings with the People's Court.  Alternatively, the party concerned may, within 15 days from the date of receipt of the sanction notice or the date the tax authorities implement the mandatory measures or measures for retaining tax revenue, institute legal proceedings directly with the People's Court. In the course of making a reconsideration and instituting legal proceedings, the mandatory measures or measures for retaining tax revenue shall not cease to be implemented.

   

If the party concerned neither applies for a reconsideration  of  the sanction decision  made  by  the  tax  authorities  and  institutes  legal proceedings with the People's Court within the prescribed time  limit  nor complies with the sanction decision, the tax authorities which  have  made the sanction decision may  apply  to  the  People's  Court  for  mandatory enforcement of the decision.



CHAPTER VI-SUPPLEMENTARY PROVISIONS
   

Article 57  A taxpayer or withholding agent may appoint a tax agent to handle its tax matters on its behalf.



Article 58    The administration of collection of agricultural tax, animal husbandry tax, cultivated land usage tax and deed tax shall be implemented with reference to the relevant provisions of this Law. The  administration of collection of customs duty, shipping tax and  taxes  collected  by  the Customs  on  behalf  of  the  tax  authorities  shall  be  implemented  in accordance with the relevant provisions  stipulated  in  the  law  or  the administrative regulations.



Article 59  In the case of a discrepancy between the provisions of  the  relevant tax treaties or agreements concluded  between  the  People's  Republic  of China and foreign countries and the provisions of this Law,  the  relevant matters shall be handled in accordance with the  treaties  or  agreements.



Article 60  In the case of a discrepancy between the provisions of the tax laws promulgated prior to the implementation of this Law and the provisions of this Law, the provisions of this Law shall apply.



Article 61  The detailed rules and regulations for the implementation of this Law shall be formulated by the State Council in accordance with this Law.



Article 62  This Law shall come into force as of January 1, 1993. The "Interim Provisions of the People's Republic of China Concerning the Administration of Tax Collection" promulgated by the State Council on April 21, 1986 shall be superseded at the same time.