(Adopted at the 27th Session of the Standing Committee of the 7th National People's Congress on September 4, 1992)

CHAPTER I GENERAL PROVISIONS
CHAPTER II TAX ADMINISTRATION
CHAPTER III TAX COLLECTION
CHAPTER IV TAX INSPECTION
CHAPTER V LEGAL LIABILITIES
CHAPTER VI SUPPLEMENTARY PROVISIONS

CHAPTER I GENERAL PROVISIONS

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

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

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

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

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

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

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

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

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

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

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

Article 6. Tax officials must implement the law impartially and devote themselves to their duties. They shall not extort or take bribes, practice favouritism, commit malpractice, neglect their duties, or fail to collect or undercollect the amount of tax payable. Nor shall they abuse their powers to overcollect tax or deliberately create difficulties for taxpayers and withholding agents.
Article 7. Any entity or individual shall have the right to report any acts committed in violation of the law or the administrative regulations. The tax authorities shall maintain confidentiality in respect of the informants and grant them rewards in accordance with the relevant provisions.

Article 8. The "tax authorities" referred to in this law means the tax bureaux at various levels and their subbureaux and tax stations.

CHAPTER II TAX ADMINISTRATION

SECTION 1 TAX REGISTRATION

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

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

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

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

SECTION 2 ADMINISTRATION OF ACCOUNTING BOOKS AND SUPPORTING VOUCHERS

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

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

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

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

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

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

SECTION 3 FILING TAX RETURNS

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

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

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

CHAPTER III TAX COLLECTION

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(2) impound or seal up the taxpayer's taxable commodities, goods or other property, the value of which is equivalent to the amount of tax payable.

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

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

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

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

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

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

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

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

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

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

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

CHAPTER IV TAX INSPECTION

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

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

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

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

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

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

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

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

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

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

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

CHAPTER V LEGAL LIABILITIES

Article 37. The tax authorities shall order a taxpayer to remedy any of the following acts committed by the taxpayer within a time limit. Should the taxpayer fail to remedy it time limit, the tax authorities may impose a fine of not remedy it within the limit, the tax authorities may impose a fine of not more than renminbi 2,000 Yuan on the taxpayer. If the case is serious, the tax authorities may impose a fine of an amount from Renminbi 2,000 Yuan to Renminbi 10,000 Yuan on the taxpayer.

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

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

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

Article 38. Where a withholding agent fails to keep and maintain accounting books for the tax withheld and remitted or collected and remitted, or to maintain supporting vouchers for the accounts and the relevant information in respect of the tax withheld and remitted or collected and remitted in accordance with the relevant provisions, the tax authorities shall order the withholding agent to remedy the situation within a time limit. Should the withholding agent fail to remedy the situation within the time limit, the tax authorities may impose a fine of not more than Renminbi 2,000 Yuan on the withholding agent. If the case is serious,the tax authorities may impose a fine of an amount from Renminbi 2,000 Yuan to Renminbi 5,000 Yuan on the withholding agent.

Article 39. Where a taxpayer fails to fulfill tax filing requirements within a prescribed time limit or a withholding agent fails to furnish reporting schedules on the tax authorities within a prescribed time limit, the tax authorities shall order the taxpayer or withholding agent to remedy the situation within the prescribed time limit and may impose a fine of not more than Renminbi 2,000 Yuan on the taxpayer or withholding agent. Should the taxpayer or withholding agent fail to remedy the situation within the prescribed time limit, the tax authorities may impose a fine of over Renminbi 2,000 Yuan but under Renminbi 10,000 Yuan on the taxpayer or withholding agent.

Article 40. "Evasion of tax " means that a taxpayer fails to pay or underpays the amount of tax payable though the adoption of the means of forging, revising, concealing or destroying without authorization accounting books or supporting vouchers for the accounts, or of overstating expenses or not stating or understating income in accounting books, or of filing fraudulent tax returns. Where the amount of tax evaded accounts for more than ten percent of the amount of tax payable and is over Renminbi 10,000 Yuan,or where the taxpayer evades tax again after having been subject to administrative punishment imposed by the tax authorities twice as a result of tax evasion, the tax authorities shall, in addition to pursuing the payment of tax which has been evaded by the taxpayer, impose a punishment on the taxpayer Supplementary Provisions Concerning the Imposition of Punishment in Respect of Offenses of Evasion of Tax and Refusal to Pay Tax. Where for not more than ten percent of the amount of tax payable, the tax authorities shall pursue the payment of the tax evaded and impose a fine of not more than five times the amount of tax evaded.

Where a withholding agent fails to pay or underpays the tax which has been withheld or collected through the adoption of the means as specified in the preceding paragraph, and where the amount of tax payable accounts for more than ten percent of the amount of tax payable and is over Renminbi 10,000 Yuan, a punishment shall be imposed on the withholding agent in accordance with the provisions stipulated in Article 1 of the Supplementary Provisions Concerning the Imposition of Punishment in Respect of Offenses of Evasion of Tax and Refusal to pay Tax. Where the amount of tax evaded is under Renminbi 10,000 Yuan or accounts for not more than ten percent of the amount of tax payable, the tax authorities shall pursue the payment of the amount of tax authorities shall pursue the payment of the amount of tax the withholding agent has failed to pay or underpaid and impose a fine of not more than five times the amount of tax which has not been paid or underpaid.

Article 41. Where a taxpayer who has failed to pay the amount of tax payable by means of transferring or concealing the property, resulting in failure on the part of the tax authorities to pursue the payment of the tax underpaid, and where the amount of the tax underpaid is over Renminbi 10,000 Yuan, the tax authorities shall, in addition to pursuing the payment of the tax underpaid, impose a punishment on the taxpayer in accordance with the provisions set forth in Article 2 of the Supplementary Provisions Concerning the Imposition of Punishment in Respect of Offenses of Evasion of Tax and Refusal to Pay Tax. Where the amount of tax underpaid is under Renminbi 10,000 underpaid, and impose a fine of not more than five times the amount of tax underpaid.

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

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

Article 44. Where an enterprise or institution fraudulently obtains tax refund for export form the State through the adoption of deceptive means such as fraudulently declaring the commodities it produces or operates as export goods, and where the amount of tax refund which has been fraudulently obtained is over Renminbi 10,000 Yuan, the tax authorities shall, in addition to pursuing the repayment of the tax refund the enterprise or institution has fraudulently obtained, impose a punishment in accordance with the provisions Concerning the imposition of Punishment in Respect of Offenses of Evasion of Tax and Refusal to pay Tax. Where the amount of tax refund for export which has been fraudulently obtained from the State is under Renminbi 10,000 Yuan, the tax authorities shall pursue the repayment of the tax refund the enterprise or institution has fraudulently obtained, and impose a fine of not more than five times the amount of tax refund which has been fraudulently obtained.

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

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

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

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

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

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

Article 49. The administrative punishment as prescribed in this Law shall be decided by a tax bureau (or a subbureau thereof) above the county level. Where a fine of not more than Renminbi 1,000 Yuan is imposed on an individual household engaged in industry and commerce or an entity or individual which conducts business operations without a business licence, the decision shall made by the tax station concerned.

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

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

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

Article 52. Where tax officials collude with taxpayers or withholding agents, or instigate or assist the same to commit the offenses specified in Articles 40, 41, 42 and 44 0f this law, a punishment shall be imposed in accordance with the provisions regarding joint offenses stipulated in the Criminal Law. Where no offence is committed, administrative punishment shall be imposed.

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

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

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

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

Article 56. In the case of tax disputes with the tax authorities, a taxpayer, withholding agent or tax payment guarantor must first pay or remit the amount of tax and fines on tax in arrears in accordance with the law or the administrative regulations, and thereafter may, within 60 days from the date of receipt of a payment receipt from the tax authorities, apply to the tax authorities at a higher level for reconsideration. The tax authorities at a higher lever for within 60 days from the date of receipt of the application for reconsideration, make a decision after reconsideration. In the case of objection to the decision after reconsideration, legal proceedings may be instituted with the People's Court within 15 days from the date of receipt of the decision made after reconsideration.
Where a party concerned objects to a sanction decision made by the tax authorities or to the mandatory measures or measures for retaining tax revenue implemented by the same, it may, within 15 days from the date of receipt of the sanction notice or the date the tax authorities implement the mandatory measures or measures for retaining tax revenue, apply for a reconsideration to the authorities one level higher than the authorities which have made the sanction decision or implemented the mandatory measures or measures for retaining tax revenue. If the party concerned objects to the decision made upon reconsideration, it may, within 15 days legal proceedings with 15 days from the date of receipt of the sanction notice or the date the tax authorities implement the mandatory measures directly with the People's Court. In the course of making a reconsideration and instituting legal proceedings, the mandatory measures or measures for retaining tax revenue shall not cease to be implemented.

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

CHAPTER VI SUPPLEMENTARY PROVISIONS

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

Article 58. The administration of collection of agricultural tax, animal husbandry tax, cultivated land usage tax and deed tax shall be implemented with reference to the relevant provisions of this Law.

The administration of collection of customs duty, shipping tax and taxes collected by the Customs on behalf of the tax authorities shall be implemented in accordance with the relevant provisions stipulated in the law or the administrative regulations.

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

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

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

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