PRC Law on the Administration of the Levy and Collection of Taxes (Amended)

(Adopted at the 27th Session of the Standing Committee of the 7th National People's Congress on 4 September 1992; revised at the 12th Session of the Standing Committee of the 8th National People's Congress on 28 February 1995 in accordance with the Decision on Revising the PRC Law on the Administration of the Levy and Collection of Taxes; amended at the 21st Session of the Standing Committee of the 9th National People's Congress on 28 April 2001.)

PART ONE: GENERAL PROVISIONS

Article 1: This Law is formulated in order to strengthen the administration of tax collection, to standardize tax collection and payment, to ensure national tax revenue, to safeguard the legal rights and interests of taxpayers, and to promote economic and social development.

Article 2: This Law shall apply to the administration of all collection of all types of tax by the tax authorities in accordance with the law.

Article 3: The starting and stopping of tax collection as well as tax reductions, tax exemptions, tax rebates and payment of overdue taxes shall be carried out in accordance with the law. Where the law authorizes the State Council to formulate stipulations, such actions shall be implemented in accordance with administrative regulations formulated by the State Council.

No organization, work unit or individual shall make an unauthorized decision to start or stop collecting taxes, to grant tax reductions, exemptions or rebates, or to collect overdue taxes, in violation of laws and administrative regulations; or to make any other decision in contradiction with tax laws and administrative regulations.

Article 4: Work units and individuals that bear the obligation under laws and administrative regulations to pay taxes shall be the taxpayers.

Work units and individuals that bear the obligation under laws and administrative regulations to withhold and pay or collect and pay tax on behalf of another shall be the tax withholding agent.

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

Article 5: The State Council departments in charge of taxation shall be responsible for the administration of tax collection throughout the country. Regional State tax bureaux and local tax bureaux shall carry out the administration of tax collection within the bounds stipulated by the State Council respectively.

All levels of regional people's governments shall strengthen leadership or co-ordination of the administration of tax collection within their administrative area in accordance with the law. They shall support the tax authorities in exercising their duties in accordance with the law, calculate taxes in accordance with the statutory tax rates, and collect taxes in accordance with the law.

All relevant departments and work units shall support and assist the tax authorities in exercising their duties in accordance with the law.

No work unit or individual shall obstruct the tax authorities in the exercise of their duties in accordance with the law.

Article 6: The State strategically equips all levels of tax authorities with modern information technology to strengthen modernization of the information system for administration of tax collection, and to establish and perfect the information sharing system between the tax authorities and other administrative authorities of the government.

Taxpayers, tax withholding agents and other relevant work units, shall, in accordance with the relevant State regulations, truthfully provide the tax authorities with information related to tax payment, tax withholding and payment, and tax collection and payment.

Article 7: The tax authorities shall publicize widely tax laws and administrative regulations, disseminate information regarding tax payment, and provide taxpayers with tax consultancy services free of charge.

Article 8: Taxpayers and tax withholding agents have the right to be informed by the tax authorities of State tax laws and regulations and of information regarding the tax payment system.

Taxpayers and tax withholding agents have the right to request the tax authorities to maintain their confidentiality. The tax authorities shall do so in accordance with the law.

Taxpayers shall enjoy the right to apply for tax reductions, exemptions and rebates in accordance with the law.

Taxpayers and tax withholding agents shall enjoy the right to state their views on and plead their case against decisions by the tax authorities. They shall in accordance with the law enjoy rights such as the right to apply for an administrative review, to commence an administrative litigation, and to request compensation from the State.

Taxpayers and tax withholding agents shall have the right to file charges against and report to the authorities acts by the tax authorities or tax personnel that are in violation of law or discipline.

Article 9: The tax authorities shall strengthen the ranks of their personnel and enhance the quality of their political and professional work.

The tax authorities and tax personnel must enforce the law impartially, be faithful in the discharge of their duties, be upright and honest, be polite, be civilized, respect and safeguard the rights of taxpayers and tax withholding agents, and accept supervision in accordance with the law.

Tax personnel may not demand or accept bribes, practise graft, neglect their duties, or fail to collect or not collect to the full amount of taxes that should be collected. They may not abuse their authority to collect tax over and above the proper amount or to deliberately create difficulties for taxpayers and tax withholding agents.

Article 10: All levels of tax authorities shall establish and perfect internal control and supervision system.

The tax authorities at the level above shall supervise in accordance with the law the legality of the actions of the tax authorities at the level below.

All levels of tax authorities shall supervise and investigate the implementation of laws and administrative regulations by their personnel and their standard of honesty and self-discipline.

Article 11: The responsibilities of tax authority personnel responsible for tax collection, administration, checks to prevent tax evasion, and administrative review shall be clear, separate and mutually restrictive.

Article 12: Tax personnel collecting taxes or investigating and prosecuting cases of illegality shall withdraw if they have a conflict of interest with the taxpayer, tax withholding agent or the case.

Article 13: All work units and individuals have the right to report to the authorities acts in violation of tax collection laws and administrative regulations. The authority that receives the complaint and the authority responsible for investigation and prosecution shall maintain the confidentiality of the informant. Tax authorities shall reward the informant in accordance with the regulations.

Article 14: Tax authorities as referred to in this Law shall mean all levels of tax bureaux and sub-bureaux, tax offices, and tax organizations established in accordance with the stipulations of the State Council and publicly announced.

PART TWO: TAX ADMINISTRATION

Section One: Tax Registration

Article 15: Enterprises, branch organizations established elsewhere, places where production or business take place, individually-owned industrial and commercial businesses and institutions engaged in production or business (hereafter, "taxpayer(s) engaged in production or business") shall within 30 days of receiving their business licence report to and register with the tax authorities for tax, and submit the necessary documents. Tax authorities shall within 30 days of receipt examine, verify and issue a tax registration certificate.

Administration authorities for industry and commerce shall report registrations and issue of business licences regularly to tax authorities.

Areas and procedures for registration for tax by taxpayers and registration for tax withholding and payment by tax withholding agents not included in Paragraph One of this Article shall be stipulated by the State Council.

Article 16: Amendment to the tax registration of taxpayers engaged in production or business shall be reported to the tax authorities with the relevant documents, within 30 days of the amendment of registration with the administration authorities for industry and commerce, or prior to an application to the administration authorities for industry and commerce for cancellation of registration, in order to amend or cancel the tax registration.

Article 17: Taxpayers engaged in production or business shall, in accordance with the relevant regulations of the State, take their tax registration certificate and open a basic deposit account or other deposit account with a bank or other financial institution, and shall report all their account numbers to the tax authorities.

The bank or other financial institution shall record the tax registration certificate number on the account of the taxpayer engaged in production or business and shall record the account number of the taxpayer engaged in production or business on the tax registration certificate.

When tax authorities make enquiries regarding the account opened by a taxpayer engaged in production or business, the relevant bank or other financial institution shall provide assistance.

Article 18: Taxpayers shall use their tax registration certificate in accordance with the regulations of the State Council departments in charge of taxation. The tax registration certificate shall not be transferred, altered, destroyed, bought, sold or falsified.

Section Two: Administration of Account Books and Vouchers

Article 19: Taxpayers and tax withholding agents shall establish account books in accordance with the relevant laws and administrative regulations and with the regulations of the State Council departments in charge of finance and taxation, and shall keep business accounts with reference to legal and valid vouchers.

Article 20: The financial and accounting systems or financial and accounting methods and the accounting software of taxpayers engaged in production or business shall be filed with the tax authorities.

If the financial and accounting systems or financial and accounting methods of a taxpayer engaged in production or business are not in accord with the tax regulations of the State Council or the State Council departments in charge of finance and taxation, the tax payable or tax to be withheld and paid or tax to be collected and paid shall be calculated in accordance with the tax regulations of the State Council or the State Council departments in charge of finance and taxation.

Article 21: The tax authorities shall be the authority in charge of invoices and shall be responsible for the administration and supervision of the printing, purchase, issuance, collection, keeping and cancellation thereof.

Work units and individuals shall write out, use and collect invoices in accordance with the regulations when purchasing and selling commodities, providing or receiving business services or engaging in other business activities.

The method of administering invoices shall be stipulated by the State Council.

Article 22: Special invoices for value-added tax shall be printed by enterprises designated by the State Council departments in charge of taxation. Other invoices shall be printed by enterprises designated respectively by the State tax bureaux of provinces, autonomous regions and municipalities directly under the central government, and local tax bureaux as stipulated by the State Council departments in charge of taxation.

An enterprise may not print invoices unless designated in accordance with the provisions of the preceding paragraph.

Article 23: In accordance with the requirements of administration of tax collection, the State shall actively encourage the use of tax control equipment. Taxpayers shall install and use the tax control equipment in accordance with the regulations, and may not damage or modify it without authorization.

Article 24: Taxpayers engaged in production or business and tax withholding agents must keep account books, book-keeping vouchers, tax payment certificates and other relevant materials for the period of time stipulated by the State Council departments in charge of finance and taxation.

Account books, book-keeping vouchers, tax payment certificates and other relevant materials may not be falsified, altered, or destroyed without authorization.

Section Three: Filing of Tax Return

Article 25: Taxpayers must file tax returns with true information in accordance with the time limit and content stipulated in laws and administrative regulations or with the time limit and content determined by the tax authorities in accordance with laws and administrative regulations. They shall submit tax returns, financial accounting forms, and other tax payment materials required by the tax authorities in accordance with the actual situation.

Tax withholding agents must truthfully submit tax withholding and payment, or tax collection and payment, forms, and other relevant materials required by the tax authorities in accordance with the actual situation, in accordance with the time limit and content stipulated in laws and administrative regulations or with the time limit and content determined by the tax authorities in accordance with laws and administrative regulations.

Article 26: Taxpayers and tax withholding agents may file tax returns or send tax withholding and payment or tax collection and payment forms direct to the tax authorities, or may in accordance with the regulations use other methods such as the post or electronic documents.

Article 27: Taxpayers and tax withholding agents who fail to file tax returns or send tax withholding and payment or tax collection and payment forms on time may extend the time limit with the verification and approval of the tax authorities.

If the time limit for filing of tax returns and submission of forms is extended in accordance with the provisions of the preceding paragraph, tax shall be prepaid within the payment period according to the sum of the tax actually paid for the previous period or to a sum appraised and determined by the tax authorities, and the tax payment shall be settled within the approved extension period.

PART THREE: TAX COLLECTION

Article 28: The tax authorities shall collect tax in accordance with laws and administrative regulations, and may not start or stop tax collection, collect tax in excess of or less than the proper amount, collect tax in advance, delay tax collection or apportion taxes in violation of laws and administrative regulations.

The amount payable of agricultural tax shall be determined in accordance with laws and regulations.

Article 29: No work unit or individual may engage in tax collection activities except for tax authorities, tax personnel, and work units and persons appointed by the tax authorities in accordance with laws and administrative regulations.

Article 30: Tax withholding agents shall carry out their obligation to withhold or collect tax in accordance with laws and administrative regulations. The tax authorities may not request work units or individuals to fulfil the obligation of withholding or collecting tax if the work unit or individual is not obliged to do so by laws and administrative regulations.

When the tax withholding agents carry out their obligation to withhold or collect tax in accordance with the law, taxpayers may not refuse. If the taxpayers refuse, the tax withholding agents shall report to the tax authorities in a timely manner.

The tax authorities shall pay tax withholding agents handling charges for tax withheld or collected in accordance with the regulations.

Article 31: Taxpayers and tax withholding agents shall pay taxes or turn over the taxes withheld in accordance with the time limit stipulated by laws and administrative regulations, or the time limit determined by the tax authorities in accordance with laws and administrative regulations.

Taxpayers who fail to pay taxes on time because of special hardship may extend the payment deadline with the approval of the State tax bureau of the province, autonomous region or municipality directly under the central government or of the local tax bureau, but the maximum extension may not exceed three months.

Article 32: If a taxpayer fails to pay tax within the stipulated time limit, or if a tax withholding agent fails to turn over the tax withheld within the stipulated time limit, the tax authorities shall order payment within a specified time limit and, in addition, collect a late payment fine equivalent to 1/2000 per day of the unpaid tax beginning from the date of delay of payment.

Article 33: Taxpayers may apply in writing for tax reductions or exemptions in accordance with laws and administrative regulations.

Applications for tax reductions and exemptions shall be examined and approved by the tax reduction and exemption examination and approval authorities stipulated in laws and administrative regulations. Unauthorized decisions on tax reductions and exemptions made by all levels of local people's governments, their departments in charge, work units or individuals that are in violation of laws and administrative regulations shall be invalid. The tax authorities shall not implement them and shall report them to the tax authority at the superior level.

Article 34: When collecting taxes, the tax authorities must issue the taxpayer with a tax payment certificate. When a tax withholding agent withholds or collects tax, the taxpayer shall request the agent to issue a tax withheld or tax collected certificate, and the agent shall do so accordingly.

Article 35: The tax authorities have the right to appraise and determine the tax payable if one of the following situations applies to the taxpayer:

(1) according to laws and administrative regulations the taxpayer is not obliged to establish account books;

(2) according to laws and administrative regulations the taxpayer shall set up account books but has not yet done so;

(3) the account books have been destroyed without authorization or the taxpayer refuses to submit tax information;

(4) although account books have been set up the accounts are confused, or information on costs, revenue receipts and receipts for charges are incomplete, and the accounts are difficult to inspect;

(5) the taxpayer is liable to tax but has not filed a tax return within the stipulated time limit nor within the deadline ordered by the tax authorities; or

(6) the basis on which the tax is calculated, which is submitted by the taxpayer, is clearly on the low side and there is no legitimate reason for this.

The specific procedure and methods used by the tax authorities to appraise and determine tax payable shall be stipulated by the State Council departments in charge of taxation.

Article 36: Prices and charges collected or paid for business transactions between organizations or places engaged in production or business set up by enterprises or foreign enterprises within China and their affiliated enterprises shall be similar to those for business transactions between independent enterprises. The tax authorities have the right to implement reasonable adjustment if prices and charges are not collected and paid with reference to those for business transactions between independent enterprises, resulting in a reduction of taxable income or gains.

Article 37: The tax authorities shall appraise and determine the tax payable, and order its payment, if a taxpayer engaged in production or business, or a taxpayer temporarily engaged in business, has not completed tax registration in accordance with the regulations. If the tax is not paid, the tax authorities may seize commodities or goods equivalent in value to the tax due. If the tax due is paid after such a seizure, the tax authorities must immediately terminate the seizure and return the commodities or good seized. If the tax remains unpaid after the seizure, the commodities or goods seized shall, with the approval of the head of the tax bureau (or sub-bureau) above the county level, be auctioned or sold off in accordance with the law and the proceeds be used to pay the tax.

Article 38: If the tax authorities have reason to believe a taxpayer engaged in production or business is evading its tax payment obligations, they may order payment of the tax payable before the due date of payment as stipulated. If, within the stipulated time limit, there are clear indications that the taxpayer has transferred or concealed taxable commodities, goods or other property, or the taxable income, the tax authorities may instruct the taxpayer to provide a tax security. If the taxpayer cannot provide a tax security, the tax authorities may adopt the following tax preservation measures with the approval of the head of the tax bureau (or sub-bureau) above the county level:

(1) instruct in writing the bank or other financial institution in which the taxpayer has its account to freeze a sum of the taxpayer's deposit equivalent to the amount of tax payable; or

(2) seize or seal up the taxpayer's commodities, goods or other property to a value equivalent to the payable tax.

If the taxpayer pays the tax within the time limit stipulated in the preceding paragraph, the tax authorities must immediately rescind the tax preservation measures. If the tax has not been paid after the deadline has expired, the tax authorities may, with the approval of the head of the tax bureau (or sub-bureau) above the county level, instruct in writing the bank or other financial institution in which the taxpayer has its account to withhold and pay the tax from the frozen savings, or may auction or sell off the seized or sealed up commodities, goods or other property in accordance with the law and pay the tax from the proceeds.

Housing and utensils required by individuals and their families to sustain life shall not fall within the scope of tax preservation measures.

Article 39: If a taxpayer has paid the tax within the stipulated time limit and the tax authorities do not immediately rescind the tax preservation measures, resulting in infringements of the legal rights and interests of the taxpayer, the tax authorities shall be liable for compensation.

Article 40: If a taxpayer engaged in production or business, or a tax withholding agent, fails to pay or turn over the tax within the stipulated time limit, or the tax security provider fails to pay the tax secured within the stipulated time limit, and the tax has still not been paid within the time limit ordered by the tax authorities, the tax authorities may adopt the following enforcement measures with the approval of the head of the tax bureau (or sub-bureau) above the county level:

(1) instruct the account-holding bank or other financial institution to withhold and pay the tax from the savings account; or

(2) seize, seal up and auction or sell off in accordance with the law commodities, goods or other property equivalent in value to the tax payable, and pay the tax from the proceeds.

When the tax authorities adopt enforcement measures, they shall at the same time enforce payment of the unpaid late payment fine by the taxpayer, tax withholding agent or tax security provider in the preceding paragraph.

Housing and utensils required by individuals and their families to sustain life shall not fall within the scope of the enforcement measures.

Article 41: The power to adopt tax preservation and enforcement measures stipulated in Articles 37, 38 and 40 of this Law shall not be exercised by any work unit or individual other than the statutory tax authorities.

Article 42: Adoption of tax preservation and enforcement measures by the tax authorities must be in accordance with their statutory powers and the statutory procedure. Housing and utensils required by individuals and their families to sustain life may not be sealed up or seized.

Article 43: Tax authorities abusing their authority and illegally adopting tax preservation or enforcement measures, or adopting improper tax preservation or enforcement measures, resulting in infringements of the legal rights and interests of the taxpayer, tax withholding agent or tax security provider, shall be liable for compensation.

Article 44: If taxpayers owing taxes or their statutory representatives need to leave the country, they shall before so doing settle the tax payable and late payment fine with the tax authorities, or provide a security. If they have not settled the tax and late payment fine, nor have they provided a security, the tax authorities may inform the immigration authorities to stop them from leaving the country.

Article 45: Tax collection by the tax authorities shall take precedence over unsecured claims, except where the law stipulates otherwise. If tax arrears existed before the taxpayer uses its property to secure mortgages or pledges, or before the taxpayer's property is placed in lien, tax collection shall take precedence over the exercise of mortgage rights, pledge rights and liens.

If a taxpayer owes taxes and at the same time is subject to a fine or confiscation of illegal gains by administrative authorities, tax collection shall take precedence over the fine or confiscation of illegal gains.

The tax authorities shall inform taxpayers regularly of their tax arrears.

Article 46: Taxpayers who owe taxes and use their property to secure a mortgage or pledge shall explain this to the mortgagee or pledgee. The mortgagee or pledgee may request the tax authorities to provide information on the tax arrears.

Article 47: When seizing commodities, goods or other property, the tax authorities must issue a receipt. When sealing up commodities, goods or other property, the tax authorities must issue an inventory.

Article 48: When a taxpayer merges or splits, it shall report the matter to the tax authorities and settle its tax in accordance with the law. When a taxpayer merges and does not settle its tax, it shall after the merger continue to fulfil its unfulfilled tax obligations. When a taxpayer splits and does not settle its tax, it shall after the split remain responsible for its unfulfilled tax obligations.

Article 49: Taxpayers with large tax arrears shall report to the tax authorities before disposing of their immovable property or large assets.

Article 50: If a taxpayer is in arrears and harms State tax revenue because it is slow to exercise the claim of a due debt, or reneging on a due debt, or assigning property without compensation, or assigning property at a clearly unreasonably low price with the knowledge of the assignee of the property, the tax authorities may exercise their right of subrogation or cancellation in accordance with Articles 73 and 74 of the Contract Law.

If the tax authorities exercise their right of subrogation or cancellation in accordance with the preceding paragraph, this does not exempt the taxpayer in arrears from fulfilling its tax obligations or legal liability.

Article 51: If a taxpayer pays tax in excess of that payable, the tax authorities shall refund this immediately upon discovery. If the taxpayer discovers this has happened within three years of the date of settling the tax, it may ask the tax authorities to refund the excess tax paid with interest at the bank deposit rate for the same period. The tax authorities shall make the refund immediately after investigation and confirmation. If this involves refund from the treasury, the refund shall be in accordance with laws and administrative regulations on administration of the treasury.

Article 52: If taxpayers or tax withholding agents fail to pay tax or pay a smaller amount of tax due to the fault of the tax authorities, the tax authorities may within three years ask the taxpayer or tax withholding agent to make the supplementary payment, but they may not impose a late payment fine.

If taxpayers or tax withholding agents fail to pay tax or pay a smaller amount of tax due to a mistake of their own such as miscalculation, the tax authorities may within three years recover the tax and the late repayment fine. In special circumstances, this period may be extended to five years.

In cases of tax evasion, refusal to pay taxes or tax fraud, the tax authorities may collect the tax owed due to non-payment or underpayment and the late repayment fine or the tax defrauded and shall not be subjected to the time restriction in the preceding paragraph.

Article 53: State tax bureaux and local bureaux shall pay tax collected into the treasury in accordance with the scope of administration of tax collection and budgeted payment level stipulated by the State.

If audit authorities or financial authorities discover in accordance with the law tax illegalities, the tax authorities shall, on the basis of the decision and opinion document of the relevant authority, pay the tax and the late payment fine that should have been collected into the treasury in accordance with the budgeted level, and reply to the relevant authorities in a timely manner.

PART FOUR: TAX INSPECTION

Article 54: The tax authorities have the right to carry out the following tax inspections:

(1) inspection of taxpayers' account books, book-keeping vouchers, tax returns and relevant materials, and tax withholding agents' tax withholding and payment and tax collection and payment account books, book-keeping vouchers and relevant materials;

(2) to go to taxpayers' production and business sites and storage areas of goods to inspect the taxpayers' taxable commodities, goods or other property, and to investigate circumstances related to tax withholding agents' withholding and payment and collection and payment of taxes;

(3) to instruct taxpayers and tax withholding agents to provide documents, evidence and materials related to tax payment, tax withholding and payment and tax collection and payment;

(4) to ask taxpayers and tax withholding agents questions related to tax payment, tax withholding and payment and tax collection and payment;

(5) to go to train stations, wharves, airports, postal service enterprises and their branch organizations to inspect invoices, vouchers and materials related to the shipping and posting by taxpayers of taxable commodities, goods or other property; and

(6) with the approval of the head of the tax bureau (or sub-bureau) above the county level and in possession of the national unified form of investigation of deposit accounts licence, to make enquiries about the deposit accounts held by taxpayers engaged in production or business and by tax withholding agents in banks or other financial institutions. When investigating cases involving tax illegality, the tax authorities may, with the approval of the head of the tax bureau (or sub-bureau) above the municipal or autonomous prefecture level in their area, make enquiries about the savings accounts of suspected personnel involved in the case. The materials obtained by the tax authorities during their enquiries may not be used for any purpose other than those connected with tax revenue.

Article 55: If, when conducting investigations in accordance with the law in the tax paid in the previous tax period(s) by taxpayers engaged in production or business, the tax authorities discover that the taxpayer has evaded tax and there are clear indications that the taxpayer has transferred or concealed taxable commodities, goods or other property or taxable income, they may adopt tax preservation or enforcement measures in accordance with the approval authority stipulated in this Law.

Article 56: Taxpayers and tax withholding agents must accept tax investigations carried out in accordance with the law by the tax authorities and must respond truthfully and provide the relevant materials. They may not refuse the investigation or cover up.

Article 57: The tax authorities, when carrying out tax investigations in accordance with the law, shall have the right to make enquiries of related work units and individuals about circumstances related to the taxpayer or tax withholding agent and other parties involved, and to their tax payments or tax withholding and payment or tax collection and payment. The related work unit or individual shall be obliged to provide the relevant materials and evidence to the tax authorities truthfully.

Article 58: The tax authorities, when investigating cases of tax illegality, may write down, audiotape, videotape, photograph and duplicate instances and materials related to the case.

Article 59: Personnel dispatched by the tax authorities to carry out tax investigations shall show the tax investigation permit and tax investigation notice and shall be responsible for maintaining the confidentiality of those being investigated. If the tax investigation permit and tax investigation notice are not shown, the person being investigated shall have the right to refuse the investigation.

PART FIVE: LEGAL LIABILITY

Article 60: If a taxpayer commits one of the following acts, the tax authorities shall order the matter to be rectified within a specified time limit, and a fine of maximum Rmb2,000 may be imposed. In a serious case, a fine of not less than Rmb2,000 and not more than Rmb10,000 may be imposed:

(1) failure to carry out tax registration, amendment to registration or cancellation of registration within the stipulated period;

(2) failure to set up or keep safe account books or to keep safe book-keeping vouchers and relevant materials in accordance with the regulations;

(3) failure to file financial and accounting systems or financial and accounting methods and accounting software in accordance with the regulations;

(4) failure to report all bank account numbers to the tax authorities in accordance with the regulations; or

(5) failure to install and use tax control equipment in accordance with the regulations, or damaging or making unauthorized alterations to tax control equipment.

If taxpayers fail to carry out tax registration, the tax authorities shall order the matter to be rectified within a specified time limit. If they fail to do so within the specified time limit, the administration authorities for industry and commerce shall revoke their business licence at the request of the tax authorities.

If taxpayers fail to utilize the tax registration certificate in accordance with the regulations, or transfer, alter, destroy, buy, sell or falsify tax registration certificates, a fine of not less than Rmb2,000 and not more than Rmb10,000 shall be imposed. In a serious case, a fine of not less than Rmb10,000 and not more than Rmb50,000 shall be imposed.

Article 61: If tax withholding agents fail to set up and keep safe tax withholding and payment or tax collection and payment account books, or fail to keep safe tax withholding and payment or tax collection and payment book-keeping vouchers and relevant materials in accordance with the regulations, the tax authorities shall order the matter to be rectified within a specified time limit, and a fine of maximum Rmb2,000 may be imposed. In a serious case, a fine of not less than Rmb2,000 and not more than Rmb5,000 may be imposed.

Article 62: If taxpayers fail to file tax returns or submit information on tax payments within the stipulated time limit, or if tax withholding agents fail to submit tax withholding and payment or tax collection and payment forms and relevant materials to the tax authorities within the specified time limit, the tax authorities shall order the matter to be rectified within a specified time limit, and a fine of maximum Rmb2,000 may be imposed. In a serious case, a fine of not less than Rmb2,000 and not more than Rmb10,000 may be imposed.

Article 63: Cases in which taxpayers falsify, alter or conceal account books or book-keeping vouchers, or destroy these without authorization, or enter exaggerated expenditure or fail to enter income or enter a smaller amount of income in their account books, or refuse to file tax returns when notified to do so by the tax authorities or file false tax returns and do not pay or underpay the tax due are tax evasion. In cases of taxpayers evading tax, the tax authorities shall demand payment of the tax owed due to non-payment or underpayment and the late payment fine, and a fine of not less than 50% and not more than five times the tax owed due to non-payment or underpayment shall be imposed. If the matter constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

If tax withholding agents use one of the means in the preceding paragraph and fail to pay or underpay tax already withheld or collected, the tax authorities shall demand payment of the tax owed due to non-payment or underpayment and the late payment fine, and a fine of not less than 50% and not more than five times the tax owed due to non-payment or underpayment shall be imposed. If the matter constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

Article 64: If taxpayers and tax withholding agents falsify information on which calculation of tax is based, the tax authorities shall order the matter to be rectified within a specified time limit, and a fine of maximum Rmb50,000 shall be imposed.

If taxpayers fail to file tax returns and do not pay or underpay the tax due, the tax authorities shall demand payment of the tax owed due to non-payment or underpayment and the late payment fine, and a fine of not less than 50% and not more than five times the tax owed due to non-payment or underpayment shall be imposed.

Article 65: If taxpayers owing tax due transfer or conceal property to obstruct the tax authorities from demanding payment for the tax owed, the tax authorities shall demand payment of the tax owed and the late payment fine, and a fine of not less than 50% and not more than five times the tax owed shall be imposed. If the matter constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

Article 66: In cases of export using false documentation or other fraudulent methods to obtain State export tax rebates, the tax authorities shall demand payment of the fraudulently obtained tax rebate, and a fine of not less than one and not more than five times the tax rebate shall be imposed. If the matter constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

In cases of those fraudulently obtaining State export tax rebates, the tax authorities may stop processing their export tax rebates within the stipulated period.

Article 67: Use of violence or threats in refusing to pay tax constitutes a refusal to pay tax. In addition to demanding payment of the tax that has been refused and the late payment fee, the tax authorities shall pursue criminal liability according to the law. If the circumstances are light and the matter does not constitute a criminal offence, the tax authorities shall demand payment of the tax refused and the late payment fee, and a fine of not less than one and not more than five times the tax refused shall be imposed.

Article 68: If taxpayers and tax withholding agents fail to pay or underpay tax due during the stipulated time limit, the tax authorities shall order payment within a specified time limit. In cases of those that fail to do so, the tax authorities may adopt enforcement measures to demand payment of the tax owed due to non-payment or underpayment in accordance with Article 40 of this Law and, in addition, impose a fine of not less than 50% and not more than five times the tax owed due to non-payment or underpayment.

Article 69: In cases of tax withholding agents failing to withhold or collect tax due to be withheld or collected, the tax authorities shall demand payment of the tax from the taxpayer, and shall impose a fine of not less than 50% and not more than three times the tax that should have been withheld or collected on the tax withholding agent.

Article 70: If taxpayers and tax withholding agents obstruct investigations by the tax authorities through evasion, refusal or other methods, the tax authorities shall order the matter to be rectified, and a fine of maximum Rmb10,000 may be imposed. In a serious case, a fine of not less than Rmb10,000 and not more than Rmb50,000 shall be imposed.

Article 71: In cases of those illegally printing invoices in violation of Article 22 of this Law, the tax authorities shall destroy the illegally printed invoices, confiscate the illegal gains and equipment used, and shall impose a fine of not less than Rmb10,000 and not more than Rmb50,000. If the matter constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

Article 72: If taxpayers and tax withholding agents engaged in production or business act illegally under this Law and refuse to accept intervention by the tax authorities, the tax authorities may take back their invoices or stop issuing invoices to them.

Article 73: If banks or other financial institutions holding the accounts of taxpayers or tax withholding agents refuse to accept examination of a taxpayer's or tax withholding agent's deposit accounts by the tax authorities in accordance with the law, or refuse to implement the tax authorities' decision to freeze the deposits or to deduct tax, or after receiving written notification from the tax authorities, assist the taxpayer or tax withholding agent in transferring their deposits, causing a loss of taxes, the tax authorities shall impose a fine of not less than Rmb100,000 and not more than Rmb500,000. A fine of not less than Rmb1,000 and not more than Rmb10,000 shall be imposed on the supervising officials directly responsible and other personnel directly responsible.

Article 74: Administrative penalties stipulated in this Law involving fines of maximum Rmb2,000 may be decided by the tax authorities.

Article 75: The income of tax and judicial authorities from fines and confiscations involving tax shall be paid into the treasury in accordance with the budgeted level for tax payments to the treasury.

Article 76: If tax authorities, in violation of the regulations, make unauthorized changes to the scope of the administration of tax collection or to the budgeted level of tax payments to the treasury, they shall be ordered to rectify the matter. Administrative penalty such as demotion or dismissal shall be imposed on the supervising officials directly responsible and other personnel directly responsible in accordance with the law.

Article 77: If a taxpayer or tax withholding agent commits an act stipulated in Article 63, 65, 66, 67 or 71 of this Law that is suspected of being criminal, the tax authorities shall hand over the case to judicial authorities to pursue criminal liability.

If tax personnel practise graft and fail to hand over cases that should be transferred to the judicial authorities to pursue criminal liability, criminal liability shall be pursued in accordance with the law if the case is serious.

Article 78: Those collecting taxes who have not been appointed by the tax authorities in accordance with the law shall be ordered to return the money and goods collected and shall be subjected to administrative penalty in accordance with the law. In cases where the lawful rights and interests of others are harmed, they shall be responsible for compensation in accordance with the law. If the matter constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

Article 79: If the tax authorities or tax personnel seal up or seize from taxpayers housing and utensils required by individuals and their families to sustain life, they shall be ordered to return these, and shall be subjected to administrative penalty in accordance with the law. If the matter constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

Article 80: If tax personnel collude with taxpayers or tax withholding agents to aid or abet an act by the taxpayer or tax withholding agent stipulated in Article 63, 65 or 66 of this Law, and a criminal offence is constituted, criminal liability shall be pursued in accordance with the law. Where a criminal offence is not constituted, they shall be subjected to administrative penalty in accordance with the law.

Article 81: If tax personnel take advantage of their position to accept or solicit property from taxpayers or tax withholding agents, or to obtain other improper benefits, and a criminal offence is constituted, criminal liability shall be pursued in accordance with the law. Where a criminal offence is not constituted, they shall be subjected to administrative penalty in accordance with the law.

Article 82: If tax personnel practise graft, or neglect their duties, by failing to collect or not collecting in full taxes that should be collected and resulting in major loss to the tax revenue of the State, and a criminal offence is constituted, criminal liability shall be pursued in accordance with the law. Where a criminal offence is not constituted, they shall be subjected to administrative penalty in accordance with the law.

If tax personnel abuse their authority and deliberately create difficulties for taxpayers or tax withholding agents, they shall be transferred from their posts and be subjected to administrative penalty in accordance with the law.

If tax personnel take retribution on taxpayers or tax withholding agents that have laid charges or complaints about their illegal behaviour, or on other informants, they shall be subjected to administrative penalty in accordance with the law. If a criminal offence is constituted, criminal liability shall be pursued in accordance with the law.

If tax personnel, in violation of laws and administrative regulations, deliberately overestimate or underestimate taxable agricultural production for the purposes of tax calculation, causing over-collection or under-collection of tax, resulting in infringements of the lawful rights and interests of the peasants or harming State interests, and a criminal offence is constituted, criminal liability shall be pursued in accordance with the law. If a criminal offence is not constituted, they shall be subjected to administrative penalty in accordance with the law.

Article 83: In cases of early or late collection of tax or of apportion of tax in violation of laws and administrative regulations, the authority at the superior level or the administrative supervision authority shall order rectification of the matter, and shall impose administrative penalty on the supervising officials directly responsible and other personnel directly responsible in accordance with the law.

Article 84: If, in violation of laws and administrative regulations, unauthorized decisions are made to start or stop collecting tax, or to reduce, exempt, refund or supplement tax, or other decisions are made that are in conflict with other tax laws and administrative regulations, in addition to revoking the unauthorized decision in accordance with this Law, tax that should have been paid shall be collected and tax that should not have been paid shall be refunded. Administrative liability of the supervising officials directly responsible and other personnel directly responsible shall be pursued by the authority at the superior level. If the matter constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

Article 85: In cases of failure by tax personnel to withdraw in accordance with this Law when collecting tax or investigating and prosecuting cases of tax illegality, the supervising officials directly responsible and other personnel directly responsible shall be subjected to administrative penalty.

Article 86: Acts in violation of tax laws and administrative regulations that should have been subjected to administrative penalty through fines but that do not come to light within five years shall not then be subjected to administrative penalty.

Article 87: In cases of failure in accordance with this Law to maintain the confidentiality of taxpayers, tax withholding agents and informants, administrative penalty shall be imposed on the supervising officials directly responsible and other personnel directly responsible by their work unit or the relevant work unit.

Article 88: When taxpayers, tax withholding agents or tax security providers are in dispute with the tax authorities over tax payments, they must first pay or hand over the tax and the late payment fine or provide a corresponding security in accordance with the tax authorities' decision. They may then apply for administrative review in accordance with the law. Those who do not accept the decision of administrative review may appeal to the people's court in accordance with the law.

Parties that do not accept the tax authorities' decision on fines, enforcement or tax preservation measures may apply for administrative review in accordance with the law, and may also appeal to the people's court in accordance with the law.

If parties do not, within the time limit, apply for an administrative review of a decision by the tax authorities on fines or appeal to the people's court, nor comply with the decision, the tax authority that made the decision may adopt the enforcement measures stipulated in Article 40 of this Law, and may also apply to the people's court for enforcement.

PART SIX: SUPPLEMENTARY PROVISIONS

Article 89: Taxpayers and tax withholding agents may appoint a tax agent to handle their tax affairs.

Article 90: Specific procedures for administration of the collection of cultivated land use tax, stamp duty, agricultural tax and husbandry tax shall be formulated separately by the State Council.

Administration of the collection of customs duty and the collection of tax by customs shall be implemented in accordance with laws and administrative regulations.

Article 91: Where the provisions of conventions and agreements acceded to by the PRC and foreign countries differ from this Law, those conventions and agreements shall apply.

Article 92: If the provisions of tax laws promulgated before this Law comes into effect differ from this Law, this Law shall apply.

Article 93: The State Council shall formulate implementing rules in line with this Law.

Article 94: This Law shall be effective as of 1 May 2001.