Law on Administration of Taxation of the People's Republic of China - 2001

Contents

Chapter I General Provisions
Chapter II Tax Administration
Section 1 Tax Registration
Section 2 Administration of Account Books and Documents
Section 3 Declaration of Tax
Chapter III Tax Collection
Chapter IV Tax Inspection
Chapter V Legal Liability
Chapter VI Supplementary Provisions

Chapter I General Provisions

Article 1
For the purposes of strengthening administration of taxation, regulating tax collection and payment behaviors, ensuring the tax revenue of the State, protecting the legitimate rights and interests of taxpayers, and promoting the economic and social development, this Law is enacted.

Article 2
This Law applies to administration of taxation imposed by tax authorities according to law.

Article 3
Commencement, cessation, reduction, exemption, rebate and supplement of taxes shall be governed by the provisions of law, or by the provisions of administrative regulations formulated by the State Council in case the State Council is authorized by law to formulate such regulations.

Without authorization, no organ, unit or individual may, in violation of the provisions of laws and administrative regulations, come to a decision on commencement, cessation, reduction, exemption, rebate or supplement of a tax or any other decision contradicting laws and administrative regulations on taxation.

Article 4
A unit or an individual being liable to a tax as required by laws and administrative regulations is cited as the taxpayer.

A unit or an individual being liable to a tax withholding and remittance or a tax collection and remittance as required by laws and administrative regulations is cited as the withholding agent.

Taxpayers or withholding agents must pay the amount of tax or withhold and remit or collect and remit the amount of tax in accordance with the provisions of laws and administrative regulations.

Article 5
The competent tax department of the State Council shall take charge of the work of administration of taxation throughout the country. The State tax bureaus and local tax bureaus in all localities shall administer taxation within their respective spheres of administration laid down by the State Council.

Local people's governments at all levels shall strengthen their leadership and coordination towards administration of taxation within their respective administrative areas. They shall support tax authorities in performing duties according to law, in computing the amount of tax according to the statutory tax rate and in collecting tax according to law.

All departments and units concerned shall support and assist tax authorities in performing duties according to law.

No units or individuals may obstruct tax authorities performing duties according to law.

Article 6
The State shall, in a planned manner, equip all tax authorities with modern information technology, strengthen the modernization of the information system for administration of taxation, and establish and improve the information-sharing system between tax authorities and other administrative authorities of the government.

Taxpayers, withholding agents and other units concerned shall provide authentic information about tax payment, withholding and remittance and collection and remittance to tax authorities in accordance with the relevant provisions of the State.

Article 7
Tax authorities shall widely publicize laws and administrative regulations on taxation, popularize tax knowledge, and provide taxpayers with free consulting services on taxation.

Article 8
Taxpayers and withholding agents are entitled to get from tax authorities the provisions of laws and administrative regulations on taxation of the State and information about tax payment procedures.

Taxpayers and withholding agents are entitled to request tax authorities to preserve secrecy with regard to all matters relating to taxpayers and withholding agents. Tax authorities shall respond according to law.

Taxpayers enjoy the right to apply for reduction, exemption or rebate of tax according to law.

Taxpayers and withholding agents enjoy the right of audience and the right of petition on the decisions of tax authorities, and enjoy such rights according to law as applying for administrative reconsideration, initiating an administrative action or requesting for the State indemnity.

Taxpayers and withholding agents are entitled to charge or accuse tax authorities or tax officers committing illegal or irregular acts.

Article 9
Tax authorities shall reinforce the force of tax officers and improve their political and professional qualities.

Tax authorities and tax officers must execute laws impartially, devote themselves to duties, be clean and honest, act politely, serve taxpayers in a civilized manner, respect and protect the rights of taxpayers and withholding agents, and accept supervision according to law.

No tax officer may ask for or take bribe, practice favoritism or irregularity, neglect duties, or fail to collect or under-collect the amount of tax payable; or abuse powers to over-collect the amount of tax or deliberately create difficulties for taxpayers or withholding agents.

Article 10
Tax authorities at all levels shall establish and improve their internal systems of restriction, supervision and management.

Tax authorities at the higher level shall supervise the law execution activities of tax authorities at the lower level according to law.

Tax authorities at all levels shall supervise and inspect the execution of laws, administrative regulations and rules of self-discipline and honesty by their members.

Article 11
The duties of officers in charge of collection, administration, auditing and administrative reconsideration of tax authorities shall be defined definitely, and shall be separated and constrained one another.

Article 12
Tax officers shall withdraw from tax collection and investigation of tax-related violation cases if they have an interested relation with taxpayers, withholding agents or violation cases.

Article 13
All units and individuals are entitled to report any act violating laws or administrative regulations on taxation. Authorities receiving such reports or being responsible for investigation shall preserve secrecy with regard to all matters relating to the reporters. Tax authorities shall reward and praise the reporters according to the provisions.

Article 14
For the purposes of this Law, tax authorities mean the tax bureaus, sub-bureaus and offices at all levels as well as tax organizations established and made public according to the regulations of the State Council.

Chapter II Tax Administration

Section 1 Tax Registration

Article 15
Within 30 days following receipt of the business license and by presenting relevant certifications, an enterprise, its branch in any other place, its site of production or business operation, an individual businessman, or an institution engaged in production or business operation (hereinafter cited as the taxpayer engaging in production or business operation) shall apply for tax registration to the tax authority. The latter shall complete examination and issue the certificate of tax registration thereto within 30 days following receipt of the application.

Administrative authorities for industry and commerce shall provide tax authorities the information about business license registration and issuance at a regular interval.

The State Council shall formulate the range and measures for tax registration and tax-withholding registration of taxpayers and withholding agents who are not covered in the first paragraph of this Article.

Article 16
If having a change in tax registration, the taxpayer engaging in production or business operation shall apply to the tax authority for change or cancellation of tax registration by presenting relevant certifications and within 30 days following completion of change of registration by the administrative authority for industry and commerce or before applying cancellation of registration to the administrative authority for industry and commerce.

Article 17
Taxpayers engaging in production or business operation shall, in accordance with the relevant provisions of the State and by presenting their certificate of tax registration, open their basic deposit accounts and other deposit accounts with banks or other financial institutions, and report all of their account numbers to tax authorities.

Banks and other financial institutions shall bring the numbers of certificate of tax registration into the accounts of taxpayers engaging in production or business operation, and the account numbers of taxpayers engaging in production or business operation into their certificate of tax registration.

When tax authorities inquire about the accounts of taxpayers engaging in production or business operation according to law, banks and other financial institutions concerned shall render assistance.

Article 18
Taxpayers shall use the certificate of tax registration as required by the competent tax department of the State Council. No certificate of tax registration may be lent, tampered, damaged, destroyed, sold, bought or forged.

Section 2 Administration of Account Books and Documents

Article 19
Taxpayers and withholding agents shall set up account books in accordance with relevant laws and administrative regulations as well as the provisions of the competent financial and tax departments of the State Council, and shall keep accounts and conduct accounting pursuant to lawful and valid documents.

Article 20
Taxpayers engaging in production or business operation shall submit their financial and accounting systems, financial and accounting treatment methods and accounting software to tax authorities for the record.

When the financial or accounting system or treatment method of a taxpayer or withholding agent contradicts the tax-related provisions of the State Council or the competent financial or tax department of the State Council, his amount of tax payable, withheld, collected or remitted shall be computed in accordance with the tax-related provisions of the State Council or the competent financial or tax department of the State Council.

Article 21
Tax authorities are the competent organs of invoices and are responsible for administration and supervision over the printing, acquiring, issuing, obtaining, keeping, recovering and destroying of invoices.

In purchasing and selling commodities, providing and accepting services or engaging in other business activities, units and individuals shall issue, use and obtain invoices according to the provisions.

The State Council shall formulate the measures for administration of invoices.

Article 22
Special invoices for value-added tax shall be printed by the enterprises designated by the competent tax department of the State Council. Other invoices shall be printed by the enterprises designated respectively by the State tax bureaus and local tax bureaus of provinces, autonomous regions or municipalities directly under the Central Government in accordance with the provisions of the competent tax department of the State Council.

Without designation of the tax authority specified in the preceding paragraph, no person may print invoices.

Article 23
The State popularizes the active use of tax control tools according to the needs of administration of taxation. Taxpayers shall be equipped with and use tax control tools according to the provisions. Without approval, they may not damage, destroy or alter tax control tools.

Article 24
Taxpayers engaging in production or business operation and withholding agents must keep account books, accounting documents, tax payment receipts and other relevant materials in accordance with the period of time set forth by the competent financial or tax department of the State Council.

No account books, accounting documents, tax payment receipts or other relevant materials may be forged, altered or damaged or destroyed without approval.

Section 3 Declaration of Tax

Article 25
Within the period of declaration and upon the items set forth by the provisions of laws and administrative regulations or determined by the tax authority according to the provisions of laws and administrative regulations, a taxpayer must authentically accomplish declaration of tax, submit the tax return, financial and accounting statements and other materials required by the tax authority according to actual needs.

Within the period of submission and upon the items set forth by the provisions of laws and administrative regulations or determined by the tax authority according to the provisions of laws and administrative regulations, a withholding agent must authentically submit statements on tax withholding and remittance, collection and remittance and other relevant materials required by the tax authority according to actual needs.

Article 26
Taxpayers or withholding agents may accomplish declaration of tax or submit statements on tax withholding and remittance or collection and remittance directly to tax authorities, and may employ mail, data interchange or other manners for the above-mentioned declaration or submission according to the provisions.

Article 27
With approval of the tax authority, a taxpayer or withholding agent being unable to accomplish declaration of tax or to submit statements on tax withholding and remittance or collection and remittance as scheduled may be extended the period of declaration or submission.

A taxpayer or withholding agent being approved to extend the period of declaration or submission according to the provisions of the preceding paragraph shall prepay the tax within the period of tax payment in accordance with the actual amount of tax paid in the preceding period or the amount of tax determined by the tax authority, and shall complete the tax settlement within the approved period of extension.

Chapter III Tax Collection

Article 28
Tax authorities shall collect taxes in accordance with the provisions of laws and administrative regulations, and may not commence or cease to collect, over-collect, under-collect, collect in advance, defer to collect or apportion any tax in violation of the provisions of laws and administrative regulations.

The amount of agricultural tax payable shall be assessed in accordance with the provisions of laws and administrative regulations.

Article 29
Except tax authorities, tax collectors and units and persons empowered by tax authorities in accordance with laws and administrative regulations, no units or individuals may engage in tax collection activities.

Article 30
Withholding agents shall fulfill their duties of tax withholding and collection in accordance with the provisions of laws and administrative regulations. No tax authority may demand the duties of tax withholding and collection from a unit or an individual having no such duties according to the provisions of laws and administrative regulations.

Taxpayers may not refuse withholding agents in fulfilling their duties of tax withholding and collection according to law. If a taxpayer refuses, the withholding agent shall promptly report the matter to the tax authority.

Tax authorities shall pay the service fee to withholding agents for tax withholding and collection in accordance with the provisions.

Article 31
Taxpayers or withholding agents shall pay or remit tax within the period set forth by the provisions of laws and administrative regulations or determined by tax authorities in accordance with the provisions of laws and administrative regulations.

With approval of a State tax bureau or local tax bureau of the province, autonomous region or municipality directly under the Central Government, a taxpayer being unable to pay tax within the set period due to special difficulty may defer his tax payment. Such deferment, however, may not exceed three months.

Article 32
When a taxpayer fails to pay tax within the set period or a withholding agent fails to remit tax within the set period, the tax authority shall order him to pay or remit tax within a given time limit. Concurrently, it shall collect a daily fine for delayed payment or remittance equivalent to 0.00005 of the tax unpaid or not remitted from the date the tax payment or remittance becomes due.

Article 33
Taxpayers may, in a written form, apply for reduction or exemption of tax in accordance with the provisions of laws and administrative regulations.

Applications for reduction or exemption of tax must be examined and approved by the organs for examining and approving reduction or exemption of tax set forth by laws and administrative regulations. Decisions on reduction or exemption of tax made by local people's governments at any level, competent departments of local people's governments at any level, units or individuals in violation of the provisions of laws or administrative regulations shall be void and invalid. Tax authorities may not execute such decisions and shall report them to tax authorities at the higher level.

Article 34
When collecting taxes, tax authorities must issue the tax payment receipt to taxpayers. When withholding or collecting taxes, withholding agents shall issue the tax withholding or collection certificate to taxpayers if the latter asks for.

Article 35
Tax authorities are entitled to assess the amount of tax payable of the following taxpayers:

1. Taxpayers are permitted not to set up account books by the provisions of laws and administrative regulations;

2. Taxpayers are required to set up account books by the provisions of laws and administrative regulations but they fail to do so;

3. Without approval, taxpayers destroy account books or refuse to provide tax-related documents;

4. Taxpayers have set up account books but their accounts are in disorder or cost records, income vouchers and expense vouchers are incomplete, thus making it difficult to audit the accounts;

5. Taxpayers having the obligations of tax payment fail to accomplish declaration of tax within the set period of time, and fail to respond as scheduled after they are ordered by tax authorities; or

6. Taxpayers declare the tax basis that is obviously low without justified reasons.

The competent tax department of the State Council shall formulate the concrete procedures and methods for tax assessment by tax authorities.

Article 36
Enterprises or organizations and sites set up in the territory of China by foreign enterprises to engage in production and business operation and their associated enterprises shall collect and pay prices and expenses for their business transactions according to the business transactions among independent enterprises. If they fail to do so as required with the intention of reduction of their taxable revenue or income, tax authorities are entitled to make reasonable adjustment.

Article 37
If taxpayers engaging in production or business operation fail to accomplish tax registration according to the provisions or taxpayers engage in temporary business operation, tax authorities shall assess their amount of tax payable and order them to pay the amount of tax. If they refuse to pay, tax authorities may hold in custody their commodities or goods of a value equivalent to the amount of tax payable. If the amount of tax payable is paid after the custody, tax authorities must remove the custody in time and return the commodities or goods in custody. If the amount of tax payable is still not paid after the custody, the commodities or goods in custody shall be auctioned or sold according to law upon approval of the commissioner of the tax bureau (or sub-bureau) at or above the county level. The proceeds from such auction or sales shall be used to pay the amount of tax payable.

Article 38
When tax authorities have grounds to believe that taxpayers engaging in production or business operation have tax evasion acts, they may, prior to the set period of tax payment, order the said taxpayers to pay the amount of tax payable within a given time limit. When tax authorities discover that taxpayers have obvious signs of transferring or concealing taxable commodities, goods or other properties, or taxable incomes within the given time limit, they may order the said taxpayers to provide security for tax payment. If the said taxpayers are unable to provide such security, tax authorities may take the following tax preservative measures with approval of the commissioner of the tax bureau (or sub-bureau) at or above the county level:

1. Informing in writing the banks or other financial institutions with which taxpayers have opened their accounts to freeze an amount of deposits equivalent to the amount of tax payable; or

2. Holding in custody or sealing the taxpayers' commodities, goods or other property of a value equivalent to the amount of tax payable.

After taxpayers pay the amount of tax within the time limit set in the preceding paragraph, tax authorities must immediately remove the tax preservative measures. If a taxpayer fails to pay the amount of tax within the said time limit, the tax authority may, with approval of the commissioner of the tax bureau (sub-bureau) at or above the county level, inform in writing the bank or any other financial institution at which the taxpayer has account to withhold and remit the amount of tax from the taxpayer's frozen deposits, or auction or sell the commodities, goods or other property in custody or sealed up, and use the proceeds from the auction or sales to offset the amount of tax payable.

Housing and necessities needed by the daily life of individuals and their supported dependents shall not fall into the scope of the tax preservative measures.

Article 39
Tax authorities shall be liable for losses of the legitimate interests of taxpayers caused by their failure of immediate removal of tax preservative measures after taxpayers have paid the amount of tax within the set time limit.

Article 40
If, within the set period, a taxpayer engaging in production or business operation or a withholding agent fails to pay or remit the amount of tax, or a surety for tax payment fails to pay the guaranteed amount of tax, the tax authority shall order him to pay or remit the amount of tax within a given time limit. If the said taxpayer, agent or surety fails to pay the amount within the given time limit, the tax authority may, with approval of the commissioner of the tax bureau (sub-bureau) at or above the county level, take the following compulsory execution measures:

1. Informing in writing his opening bank or any other financial institution to withhold and remit the amount of tax from his deposits;

2. Holding in custody, sealing up, auctioning or selling according to law the commodities, goods or other property of a value equivalent to the amount of tax payable, and using the proceeds from auction or sales to offset the amount of tax.

The tax authority shall, at the time when taking the compulsory execution measures, impose compulsorily a fine for delayed payment not yet paid by the taxpayer, withholding agent or surety for tax payment listed in the preceding paragraph.

Housing and necessities needed by the daily life of individuals and their supported dependents shall not fall into the scope of compulsory measures.

Article 41
The powers to take tax preservative measures and compulsory execution measures set forth in Articles 37, 38 and 40 of this Law may not be exercised by units or individuals other than tax authorities prescribed by law.

Article 42
Tax authorities must comply with the limits of power and procedures prescribed by law in taking tax preservative measures and compulsory execution measures, and may not seal up or hold in custody housing and necessities needed by taxpayers or their supported dependents.

Article 43
Tax authorities shall be liable for losses of the legitimate rights of taxpayers, withholding agents or sureties for tax payment caused by their power abuse in taking tax preservative measures or compulsory execution measures illegally or inappropriately.

Article 44
A taxpayer failing to pay tax or his legal representative shall, if desiring to go abroad, pay the full amount of tax payable and the full amount of fine, or provide a security for tax payment to the tax authority before his leaving. If he fails to do so, the tax authority may inform the exit administration authority to prevent his leaving.

Article 45
Unless otherwise provided by law, tax collection by tax authorities shall be priority than the non-mortgaged creditor's right. When the amount of tax defaulted by a taxpayer occurs before the taxpayer creates mortgage or hypothecation with his property or before the property of the taxpayer is placed under lien, tax collection shall be priority than the execution of the mortgage right, hypothecation right and lien right.

If a taxpayer owing tax is fined and confiscated of his illegal income by the administrative organ, tax collection shall be priority than the fine and confiscation.

Tax authorities shall make regular announcements on defaulted tax payment by taxpayers.

Article 46
A taxpayer owing tax shall inform the mortgage right holder and hypothecation right holder about his tax default when he uses his property to create mortgage or hypothecation. The mortgage right holder and hypothecation right holder may request the tax authority to provide information about the tax default of the taxpayer.

Article 47
When holding in custody commodities, goods and other properties, tax authorities must issue receipts. When sealing up commodities, goods and other properties, they must issue a detailed list.

Article 48
A taxpayer having such circumstances as merger or split shall report it to the tax authority and pay his full amount of tax according to law. If a taxpayer fails to pay his full amount of tax at the time of merger, the taxpayer after the merger shall continue to perform the obligations of tax payment not yet honored. If a taxpayer fails to pay his amount of tax at the time of split, the taxpayer after the split shall bear joint and several responsibilities in honoring the obligations of tax payment not yet made.

Article 49
Before his disposal of his immovable estate or large amount of assets, the taxpayer owing a large amount of tax shall report it to the tax authority.

Article 50
If a taxpayer owing tax fails to execute his creditor's right due, or waives his creditor's right due, or transfers without charge his property, or transfers his property at an obviously unreasonable price, and the transferee knows about the circumstance, thus causing a loss to the State's tax revenue, the tax authority may, in accordance with the provisions of Article 73 or 74 of the Contract Law, perform the abrogation right or the cancellation right.

When the tax authority performs the abrogation right or the cancellation right pursuant to the provisions of the preceding paragraph, it shall not waive the taxpayer's tax payment obligations not yet performed and legal responsibility that ought to be borne.

Article 51
If a taxpayer has paid an amount in excess of the amount of tax payable, the tax authority shall rebate it without delay once found. If the taxpayer finds his over-payment within three years from the date of tax settlement, he may request a rebate from the tax authority of the overpaid part from the tax plus interest accruing from deposits of the same term, and the tax authority shall, after examination, rebate it without delay. If the rebate involves returns from the State Treasury, the rebate shall be granted according to the provisions of laws and administrative regulations on administration of State Treasury.

Article 52
If, due to the reasons of the tax authority, a taxpayer or withholding agent fails to pay tax or underpays tax, the tax authority may, within three years, demand the taxpayer or withholding agent to supplement the tax in arrears, but it may not impose the fine for delayed payment.

If, due to the faults of a taxpayer or withholding agent such as miscalculation, the taxpayer or withholding agent fails to pay or underpays tax, the tax authority may pursue for the amount of tax in arrears and the fine for delayed payment within three years. Under special circumstances, the period for pursuing for tax payment may be extended to five years.

In case of tax evasion, tax revolt and tax cheating, tax authorities shall not be restricted by the time limitation set forth in the preceding paragraph in pursuing for payment of tax unpaid or underpaid, the fine for delayed payment or amount of tax so cheated.

Article 53
State tax bureaus and local tax bureaus shall turn taxes collected into the State Treasury in accordance with the scope on administration and collection of tax and the budgetary and treasury debit levels of taxes set by the State.

With regard to tax-related violation cases discovered according to law by the audit organs and finance organs, tax authorities shall, according to the decisions and opinions of relevant organs, turn over the amount of tax and fine for delayed payment receivable into the State Treasury according to the treasury debit and budgetary levels, and notify the relevant organs timely of the results.

Chapter IV Tax Inspection

Article 54
Tax authorities are entitled to --

1. inspect the taxpayers' account books, accounting documents, statements and relevant materials, and the withholding agents' account books, accounting documents and relevant materials in respect of the amount of tax withheld, collected and remitted;

2. inspect taxpayers' taxable commodities, goods or other properties at the taxpayers' sites where production or business operations are conducted and places where goods are stored, and the withholding agents' operating conditions relating to tax withholding, collection and remittance;

3. order the taxpayers and withholding agents to provide documents, proofs and information pertaining to tax payment or the amount of tax withheld, collected and remitted;

4. inquire the taxpayers and withholding agents on matters and particulars relevant to the tax payment or the amount of tax withheld, collected and remitted;

5. inspect the taxpayers' bills, vouchers and relevant materials pertaining to the taxable commodities, goods or other properties at stations, docks, airports, postal enterprises and their branch offices consigned for transportation or mail;

6. with approval of the commissioner of the tax bureau (sub-bureau) at or above the county level and by presenting the license for deposit account inspection of a nationally unified pattern, examine the deposit accounts of taxpayers engaged in production or business operations and the withholding agents opened with banks and other financial institutions. Tax authorities may, at the time of inspecting into tax-related violation cases and with approval of the commissioner of a tax bureau (sub-bureau) at or above the level city with districts and autonomous prefectures, check the savings deposits of suspects involved in the cases. Materials so acquired by tax authorities during such inspections may not be used for purposes other than taxation.

Article 55
The tax authority which, in inspecting into the tax payment in previous tax periods by a taxpayer engaging in production or business operation, finds that the said taxpayer has an act of dodging his obligation of tax payment and obvious signs indicating that he transfers or conceals his taxable commodities, goods or any other property or taxable income, may take the tax preservative measures or compulsory execution measures according to the limit of power of approval specified in this Law.

Article 56
Taxpayers and withholding agents must accept tax inspections imposed according to law by tax authorities, truthfully report the information, provide relevant documents, and may not refuse or conceal them.

Article 57
At the time of tax inspection according to law, tax authorities are entitled to inquire relevant units and individuals about tax payment or tax withholding, collection and remittance by taxpayers, withholding agents or other parties concerned. The units and individuals concerned are obligated to truthfully provide relevant information and documents to tax authorities.

Article 58
At the time of investigating cases concerning violation of tax laws, tax authorities may take notes of, tape-record, video-record, photograph and duplicate relevant information and documents related to the cases.

Article 59
When officers appointed by the tax authority carry out tax inspections, they shall produce the permits for tax inspection and the notification for tax inspection, and shall be obligated to keep secret for the party being inspected. If they fail to do so, the parties being inspected have the right to refuse them.

Chapter V Legal Liability

Article 60
Under any of the following circumstances, the tax authority shall order the taxpayer concerned to make corrections within a given time limit and may impose a fine not exceeding 2,000 yuan or a fine exceeding 2,000 yuan but not exceeding 10,000 yuan if the circumstance is serious:

1. The taxpayer fails to accomplish tax registration, change registration or cancellation registration within the set period;

2. The taxpayer fails to establish or keep account books or to keep accounting documents and relevant materials as required;

3. The taxpayer fails to submit his financial or accounting system, financial or accounting treatment method or accounting software to the tax authority for reference as required;

4. The taxpayer fails to report all his bank account numbers to the tax authority as required; or

5. The taxpayer fails to install and use tax control tools as required, or damages or alters tax control tools without approval.

If a taxpayer fails to accomplish tax registration, the tax authority shall order him to make corrections within a given time limit; if he fails to respond as scheduled, the administrative authority for industry and commerce shall revoke his business license upon request by the tax authority.

If a taxpayer fails to use the tax registration certificate as required or lends, tampers, damages, buys, sells or forges the tax registration certificate, a fine exceeding 2,000 yuan but not exceeding 10,000 yuan shall be imposed thereon; and if the circumstance is serious, a fine exceeding 10,000 yuan but not exceeding 50,000 yuan shall be imposed thereon.

Article 61
If a withholding agent fails to establish or keep account books for tax withholding and remittance or tax collection and remittance, or fails to keep accounting documents and relevant materials for tax withholding and remittance or tax collection and remittance, the tax authority shall order him to make corrections within a given time limit and may impose a fine not exceeding 2,000 yuan or a fine exceeding 2,000 yuan but not exceeding 5,000 yuan if the circumstance is serious.

Article 62
If a taxpayer fails to accomplish declaration of tax or to submit tax payment materials within the set period, or a withholding agent fails to submit statements on tax withholding, collection and remittance within the set period, the tax authority shall order him to make corrections within a given time limit and may impose a fine not exceeding 2,000 yuan or a fine exceeding 2,000 yuan but not exceeding 10,000 yuan if the circumstance is serious.

Article 63
Failure of payment or underpayment of the amount of tax payable by taxpayers by means of forging, altering, concealing or destroying without approval account books or accounting documents, or overstating expenses or omitting or understating incomes in the account books, or refusing to file declaration of tax after notification by tax authorities, or filing unauthentic declaration of tax, shall be regarded as tax evasion. If a taxpayer commits tax evasion, the tax authority shall seek the payment of amount of tax unpaid or underpaid as well as a fine for delayed payment, and concurrently impose a fine exceeding 50% of but not exceeding five times the amount of tax unpaid or underpaid. If his act constitutes a crime, he shall be demanded for criminal responsibility according to law.

If a withholding agent fails to remit or under-remit the amount of tax already withheld or collected by resorting to the means listed in the preceding paragraph, the tax authority shall seek the remittance of amount of tax not remitted or under-remitted as well as the fine for delayed payment, and concurrently may impose a fine exceeding 50% but not exceeding fives times of the amount of tax not remitted or under-remitted. If his act constitutes a crime, he shall be demanded for criminal responsibility according to law.

Article 64
If a taxpayer or withholding agent falsifies tax basis, the tax authority shall order him to make corrections within a given time limit and impose a fine not exceeding 50,000 yuan.

If a taxpayer fails to make declaration of tax, fails to pay or underpays the amount of tax payable, the tax authority shall seek the payment of the amount of tax unpaid or underpaid as well as the fine for delayed payment, and concurrently impose a fine exceeding 50% of but not exceeding fives times the amount of tax unpaid or underpaid.

Article 65
If a taxpayer who has not paid the tax due, resorts to means of transferring or concealing property to obstruct the tax authority from seeking the payment of the amount of tax payable in arrears, the tax authority shall seek the payment of the amount of tax payable as well as the fine for delayed payment, and concurrently impose a fine exceeding 50% of but not exceeding five times the amount of tax payable. If his act constitutes a crime, he shall be demanded for criminal responsibility according to law.

Article 66
If a taxpayer, by means of false declaration of exports or other deceitful means, cheats export tax rebates from the State, the tax authority shall seek the payment of the amount of tax rebates so cheated and concurrently impose a fine exceeding one times but not exceeding five times the amount of tax rebates so cheated. If his act constitutes a crime, he shall be demanded for criminal responsibility according to law.

With regard to those cheating for export tax rebates from the State, tax authorities may suspend to offer export tax rebates for them within the prescribed period.

Article 67
Taxpayers refusing to pay taxes by means of violence or coercion shall be regarded as tax revolt, and shall be pursued for the payment of amount of tax refused to pay and the fine for delayed payment by tax authorities. In addition, their criminal responsibility shall be demanded for according to law. If the circumstance is light and no crime is constituted, tax authorities shall pursue for the payment of amount of tax refused to pay and the fine for delayed payment and concurrently, shall impose a fine exceeding one times but not exceeding five times the amount of tax so refused.

Article 68
If a taxpayer or withholding agent fails to pay or underpays the amount of tax payable or amount of tax that should be remitted within the set period, and still fails to pay at the expiration of the given time limit after the tax authority orders him to pay within a given time limit, the tax authority may, in addition to adopting the compulsory execution measures for payment of the amount of tax unpaid or underpaid specified in Article 40 of this Law, also impose a fine exceeding 50% of but not exceeding five times the amount of tax not paid or underpaid.

Article 69
If a withholding agent fails to withhold or to collect the amount of tax that should be withheld or collected, the tax authority shall seek payment of the amount of tax payable from the taxpayer, and impose a fine exceeding 50% of but not exceeding five times the amount of tax that should have been withheld or collected but not withheld or collected.

Article 70
If a taxpayer or withholding agent escapes from, refuses or obstructs in other means inspection by the tax authority, the latter shall order him to make corrections and may impose a fine not exceeding 10,000 yuan. If the circumstance is serious, it may impose a fine exceeding 10,000 yuan but not exceeding 50,000 yuan.

Article 71
If anyone, in violation of the provisions of Article 22 of this Law, illegally prints invoices, the tax authority shall destroy all invoices illegally printed, confiscate illegal proceeds and tools involved, and concurrently shall impose a fine exceeding 10,000 yuan but not exceeding 50,000 yuan. If the act constitutes a crime, criminal responsibility shall be demanded according to law.

Article 72
If a taxpayer engaging in production or business operation or a withholding agent has an act against taxation prescribed by this Law and refuses to accept penalty by the tax authority, the latter may retrieve his invoices or stop issuing invoices thereto.

Article 73
If the opening bank or other financial institution with which a taxpayer or withholding agent has opened account refuses the tax authority to check, according to law, the deposit account of the taxpayer or withholding agent, or refuses to enforce the decision made by the tax authority to freeze his deposits or amount of tax withheld, or after receiving a written notification from the tax authority, helps the taxpayer or withholding agent to transfer deposits, thus causing a loss of amount of tax, the tax authority may impose a fine exceeding 100,000 yuan but not exceeding 500,000 yuan, and impose a fine exceeding 1,000 yuan but not exceeding 10,000 yuan on the principal person directly liable and other persons directly liable.

Article 74
If the amount of fine involved in administrative penalties mentioned in this Law does not exceed 2,000 yuan, it may be decided by the tax office.

Article 75
Incomes from tax-related fines by tax authorities and judicial organs shall be turned over into the State Treasury according to the level of the treasury entry and budgetary level of amount of tax.

Article 76
If a tax authority, in violation of the provisions, alters the scope of administration of taxation and the treasury entry and budgetary level without approval, it shall be ordered to make corrections within a given time limit, and the principal person directly liable and other persons directly liable shall be given administrative penalties such as demotion or removal from post.

Article 77
If a taxpayer or withholding agent has any suspected criminal act mentioned in Article 63 , 65, 66, 67 or 71 of this Law, the tax authority shall transfer it, according to law, to the judicial organ to demand for criminal responsibility.

If a tax officer commits irregularities for favoritism by failing to transfer a case to the judicial organ that should been transferred to demand criminal responsibility according to law, and if the circumstance is serious, criminal responsibility shall be demanded according to law.

Article 78
If anyone collects tax without authorization by the tax authority, he shall be ordered to return the amount collected and be given administrative sanctions or penalties. If his act causes a loss of legitimate rights and interests of another person, he shall be liable for compensation according to law. If his act constitutes a crime, criminal responsibility shall be demanded according to law.

Article 79
A tax authority or tax officer that seals up or distrains personal housing or necessities of a taxpayer or that to support the life of dependents shall be ordered to return them and be given administrative sanctions according to law. If a crime is constituted, criminal responsibility shall be demanded according to law.

Article 80
A tax officer shall, if colluding with a taxpayer or withholding agent, instructing or assisting the taxpayer or withholding agent to commit an act mentioned in Article 63 , 65 or 66 of this Law, be demanded for criminal responsibility according to law if a crime is constituted; and if no crime is constituted, shall be given administrative sanctions.

Article 81
If a tax officer, by making use of his/her position, accepts or seeks property from taxpayers or withholding agents or seeks other unjustified interests, thus constituting to a crime, criminal responsibility shall be demanded according to law; if it does not constitute a crime, administrative sanctions shall be given thereto according to law.

Article 82
If a tax officer commits irregularities for favoritism or neglects his/her duties, fails to collect or under-collect amount of tax payable, thus causing a serious loss in State tax revenue and constituting a crime, criminal responsibility shall be demanded according to law; if it does not constitute a crime, administrative sanctions shall be given thereto according to law.

If a tax officer abuses his/her power, intentionally creates difficulties for taxpayers or withholding agents, he/she shall be removed from taxation post and be given administrative sanctions according to law.

If a tax officer seeks revenge against a taxpayer or withholding agent or other tip provider who accuses or reports on acts violating the tax law, administrative sanctions shall be given thereto; if a crime is constituted, criminal responsibility shall be demanded according to law.

If a tax officer, in violation of the provisions of laws and administrative regulations, intentionally overestimates or underestimates the taxable output for agricultural tax, leading to over-collection or under-collection of amount of tax and thus infringing up the legitimate rights of farmers or state interests, criminal responsibility shall be demanded according to law if a crime is constituted; and administrative sanctions shall be given thereto if it does not constitute a crime.

Article 83
If a tax authority, in violation of the provisions of laws and administrative regulations, collects in advance, delays the collection or appropriates amount of tax, the superior organ or the administrative supervisory organ shall order it to make corrections, and give administrative sanctions to the principal person directly liable or other persons directly liable according to law.

Article 84
If anyone, in violation of the provisions of laws and administrative regulations, makes a decision, without authorization, on the commencement, suspension, reduction, exemption, rebate or supplement of tax or other decisions contradicting tax laws and administrative regulations, in addition to revoking the decision made without authorization according to the provisions of this Law, the amount of tax not collected but ought to be collected shall be collected, the amount of tax collected but not ought to be collected shall be returned, and the organ at the higher level shall investigate the administrative responsibility of the principal person directly liable and other persons directly liable; and if a crime is constituted, criminal responsibility shall be demanded according to law.

Article 85
If a tax officer, at the time of collecting tax or investigating a case violating the tax law, fails to withdraw therefrom according to the provisions of this Law, administrative sanctions shall be given to the principal person directly liable and other persons directly liable according to law.

Article 86
An act violating laws and administrative regulations on taxation that shall be penalized administratively shall not be subject to any administrative penalties if it is not discovered within five years.

Article 87
If any matter relating to a taxpayer, withholding agent or reporter does not be preserved secrecy in accordance with the provisions of this Law, the principle person directly liable and other persons directly liable shall be given administrative sanctions by their employing unit or relevant units according to law.

Article 88
When having a dispute with the tax authority, the taxpayer, withholding agent or surety of tax payment must pay or remit the amount of tax and the fine for delayed payment or provide a full security according to the decision of the tax authority. After doing so, the party concerned may apply for administrative reconsideration according to law. The party disagreeing with the decision of administrative reconsideration may initiate an action before a people's court according to law.

A party disagreeing with the penalty decision, compulsory execution measures or tax preservative measures made by the tax authority may apply for administrative reconsideration according to law, and may also initiate an action before a people's court according to law.

In the event of a party failing both to apply for administrative reconsideration or to initiate an action before a people's court within the time limit, and to comply with the penalty decision made by the tax authority, the tax authority that makes the penalty decision may adopt the compulsory execution measures specified in Article 40 of this Law, or may apply to a people's court for compulsory enforcement.

Chapter VI Supplementary Provisions

Article 89
Taxpayers or withholding agents may empower tax agents for their tax-related affairs on behalf of them.

Article 90
Concrete measures for administration of collection of the farmland-use tax, deed tax, agricultural tax and animal husbandry tax shall be formulated separately by the State Council.

Administration of collection of the Customs duties and taxes collected by Customs authorities on behalf of tax authorities shall be governed according to the relevant provisions of laws and administrative regulations.

Article 91
In case where any tax-related treaty or agreement concluded by the People's Republic of China with a foreign country contains the provisions differing from those of this Law, the provisions of the said treaty or agreement shall govern.

Article 92
In case of a conflict between the provisions of any tax-related law before entry into force of this Law and those of this Law, the provisions of this Law shall apply.

Article 93
Subject to this Law, the State Council shall formulate the detailed rules for its implementation.

Article 94
This Law shall enter into force on May 1, 2001.