Contents
　　Chapter I General Provisions
　　Chapter II Tax Administration
　　Section 1 Tax Registration
　　Section 2 Administration of Account Books and Vouchers
　　Section 3 Filing Tax Returns
　　Chapter III Tax Collection
　　Chapter IV Tax Inspection
　　Chapter V Legal Liabilities
　　Chapter VI Supplementary Provisions
　　Chapter I General Provisions
　　Article 1 This Law is formulated with a view to strengthening tax administration， standardizing the activities of tax collection and payment， safeguarding the tax revenue of the country， protecting the legitimate rights and interests of taxpayers and promoting economic and social progress.
　　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 laws.
　　Article 3 The commencement and suspension or termination of collection of tax， tax reduction， exemption and refunding as well as the payment of tax unpaid or underpaid shall be implemented in accordance with the provisions of laws， and where the State has authorized the State Council to formulate administrative regulations， the administrative regulations formulated by the State Council shall be implemented.
　　No governmental departments， institutions or individuals may be permitted to make decisions without authorization regarding the collection of taxes， or the cessation thereof， the reduction， exemption or refund of taxes， or the payment of taxes unpaid or underpaid in violation of the law or the administrative regulations.
　　Article 4 Institutions or individuals obliged to pay taxes in accordance with the law or administrative regulations are taxpayers.
　　Institutions and individuals obliged to withhold and hand over or collect and hand over tax in accordance with the law or administrative regulations are withholding agents of tax.
　　Taxpayers and tax withholding agents shall pay tax， or withhold and hand over tax or collect and hand over tax in accordance with the law or administrative regulations.
　　Article 5 The competent administration for taxation under the State Council shall be in charge of the tax administration of the whole country. All levels of SAT offices and local tax bureaus across the country shall be responsible for tax administration in their respective jurisdictions of taxation in accordance with the provisions of the State Council.
　　Local people's governments at all levels shall strengthen their leadership and coordination in the administration of tax collection within their respective jurisdictions and support the tax authorities in performing their duties， assessing amounts of tax payable in accordance with the statutory tax rates and fulfilling their tasks of collecting tax in accordance with the law.
　　All departments and organizations concerned should support and assist the tax authorities in performing their mission.
　　No organizations or individuals shall impede the tax authorities from performing duties in accordance with the law.
　　Article 6 The State is equipping the taxation departments at all levels with modern information technology in a planned way in an effort to constantly push the modernization of the information system of tax administration， and to build and further perfect the information sharing between tax authorities and other government administrative departments.
　　Taxpayers， tax withholding agents and other relevant institutions shall provide the tax authorities with truthful information regarding tax payment， tax withholding and handing over and tax collection and handing over.
　　Article 7 Tax authorities shall make extensive publicity of the law or administrative regulations on taxation， disseminate the knowledge in this regard and provide free advisory service on taxation for taxpayers.
　　Article 8 Taxpayers and tax withholding agents shall have the right to inquire the tax authorities on the country's tax laws and administrative regulations and the procedure of tax payment.
　　Taxpayers and withholding agents shall have the right to demand the tax authorities to keep the confidentiality of the taxpayers and withholding agents. The tax authorities shall keep confidential the information of the taxpayers and withholding agents in accordance with the law.
　　Taxpayers shall have the right to apply for tax reduction， exemption and/or refund in accordance with the law.
　　Taxpayers and withholding agents shall have the right to explanation and defense regarding decisions made by tax authorities； and the right to apply for reconsideration， institute administrative proceedings and demand compensation by the State in accordance with the law.
　　Taxpayers and withholding agents shall have the right to accuse and expose the law-breaking activities of tax authorities and tax officials.
　　Article 9 The tax authorities shall constantly improve the political and professional qualities of their staff.
　　Tax authorities and tax officials must implement the law impartially， perform their duties with dedication， practice clean governance， carry their conduct cordially， provide civilized service， respect and protect the rights of taxpayers and withholding agents and accept public supervision in accordance with the law.
　　Tax officials shall not extort or accept bribes， practice favoritism， commit malpractice， neglect duties， or under-collect tax or fail to collect tax. Nor shall they abuse their power to overtax taxpayers and withholding agents or deliberately create difficulties for taxpayers and withholding agents.
　　Article 10 Tax authorities at all levels shall institutionalize and constantly perfect their internal disciplinary， supervisory and administrative systems.
　　The superior tax authorities shall exercise supervision over the law enforcement work of the subordinate tax authorities in accordance with the law.
　　The tax authorities at all levels shall exercise control and supervision of their staff members' performance of enforcing the law or administrative regulations and abiding by the self-discipline of clean governance.
　　Article 11 The staff members of tax authorities shall have clear division of labor in tax collection， administration， inspection and administrative review and work independently from one another and exercise restraint over one another.
　　Article 12 Tax officials having ties of personal interests with the taxpayer or withholding agent involved in violations of tax laws or with a case of violation of tax laws shall avoid participation in the work of tax collection or dealing with cases violating tax laws.
　　Article 13 Any organization or individual shall have the right to inform on acts of violating tax laws and administrative regulations. The tax authorities having received the report and dealt with the case shall keep confidential the information of the informer. The tax authorities should award the informer in accordance with the regulations.
　　Article 14 The "tax authorities" referred to in this Law mean the tax bureaus at all levels， sub-bureaus， offices and other taxation establishments set up and announced to the public in accordance with the regulations of the State Council.
　　Chapter II Tax Administration
　　Section 1 Tax Registration
　　Article 15 Enterprises， their subsidiaries and sites engaged in production or business operation set up by enterprises in other places， individual industrial and commercial operators and institutions engaged in production or business operation （hereinafter all referred to as "taxpayers engaged in production or business operation） shall， within 30 days after the reception of a business license， report to and complete tax registration with the tax authorities on presentation of the relevant supporting documents. The tax authorities shall issue tax registration certificates upon examination and verification of the supporting documents within 30 days after reception of the application.
　　The authorities for the administration of industry and commerce shall keep the tax authorities informed periodically of the registrations and issuance of business licenses.
　　The scope and methods for tax registration by taxpayers or registration for tax withholding and hand-over by tax withholding agents other than those prescribed in Clause 1 of this Article shall be formulated by the State Council.
　　Article 16 Where a change occurs in the contents of tax registration of a taxpayer engaged in production or business operation， the taxpayer concerned shall， within 30 days after the day of completing the formalities for business registration with the administrative authorities for industry and commerce or prior to the submission of an application for cancellation of business registration to the administrative authorities for industry and commerce， report to and complete the formalities for the change or cancellation of the tax registration with the tax authorities on presentation of the relevant supporting documents.
　　Article 17 A taxpayer engaged in production or business operation shall， in accordance with the relevant State regulations， open basic deposit accounts and other deposit accounts with a bank or other financial institution on presentation of the tax registration certificate and report all of its bank accounts to the tax authorities.
　　Banks and other financial institutions shall record in the accounts of the taxpayers the serial numbers of the tax registration certificates thereof and enter the account numbers of the taxpayers engaged in production or business operation in the tax registration documents thereof.
　　Upon the tax authorities checking the accounts opened by taxpayers， the banks or other banking institutions concerned shall provide necessary assistance.
　　Article 18 Taxpayers shall use the tax registration documents in accordance with the provisions of the competent taxation departments of the State Council. The tax registration documents shall not be lent， tampered with， damaged， sold， bought or forged.
　　Section 2
　　Administration of Account Books and Vouchers
　　Article 19 Taxpayers and withholding agents shall establish account books and keep accounts and make settlements against legitimate and valid vouchers in accordance with the laws， administrative regulations and stipulations by the competent financial and taxation departments under the State Council.
　　Article 20 Taxpayers engaged in production or business operation shall report their financial and accounting systems or methods of financial management and accounting software to the tax authorities for the record.
　　Should the financial and accounting systems or methods of a taxpayer or withholding agent contradict the relevant rules formulated by the competent financial and taxation departments under the State Council， the taxpayer or withholding agent shall assess the amount of tax payable to be paid or withheld and handed over or collected and handed over in accordance with the rules of the competent financial and taxation departments under the State Council.
　　Article 21 The tax authorities shall be in charge of invoices and responsible for the control and supervision of the printing， selling， executing， obtaining， keeping and destruction of invoices.
　　Organizations and individuals in the purchase or marketing of commodities， or accepting business services or other business activities shall execute， use and obtain invoices according to relevant regulations.
　　Rules for the control of invoices shall be formulated by the State Council.
　　Article 22 The invoices specially for added value tax shall be printed by the printing enterprise appointed by the competent taxation department of the State Council and other invoices shall be printed by printing enterprises appointed by SAT local offices and local tax bureaus of the provinces， autonomous regions and municipalities directly under the State Council in accordance with the rules formulated by the competent taxation department of the State Council.
　　Without the authorization of the tax authorities cited in the preceding paragraph， no invoice shall be printed.
　　Article 23 The State shall actively popularize the use of tax control installations to meet the need for tax administration. Taxpayers shall install and use tax control installations in accordance with the regulations and shall not damage or make changes to the tax control installations without official permission.
　　Article 24 Taxpayers engaged in production or business operation and withholding agents must maintain account books， supporting vouchers for the accounts， tax payment receipts and other relevant information in the period prescribed by the competent financial and taxation departments of the State Council.
　　It is strictly forbidden to forge， tamper with， or destroy without permission account books， vouchers for bookkeeping， tax payment receipts and other information.
　　Section 3 Filing Tax Returns
　　Article 25 Taxpayers shall file tax returns truthfully and present accounting statements and other information related to tax payment required by the tax authorities in the light of the circumstances in accordance with the law， administrative regulations and the time limit and content for filing tax returns prescribed by the tax authorities in accordance with the law or administrative regulations.
　　Tax withholding agents shall file truthful reports of tax withholding and handing over， collecting and handing over in accordance with the law， administrative regulations and in compliance with the time limit and content prescribed by the tax authorities in accordance with the law or administrative regulations.
　　Article 26 Taxpayers and tax withholding agents may file tax returns and submit withholding and handing over reports directly to the tax authorities or by way of mail， digital mail or other forms.
　　Article 27 Where a taxpayer or withholding agent has difficulty filing tax returns or submitting reports of tax payments withholding and handing over， postponement may be permitted by the tax authorities upon examination.
　　A taxpayer or tax withholding agent having been approved to postpone the filing of tax returns and tax withholding reports shall pay advance tax payment within the tax paying time limit on the basis of the actual tax payment of the previous term or the amount payable confirmed by the tax authorities and complete the settlement of the tax payment within the extended term.
　　Chapter III
　　Tax Collection
　　Article 28 Tax authorities shall collect tax in accordance with the law or administrative regulations. They shall not collect， cease to collect， over-collect or under-collect tax， or to collect tax ahead of or behind the due time or to apportion tax in violation of the law or administrative regulations.
　　The amount of agricultural tax shall be assessed in accordance with the provisions of the law or administrative regulations.
　　Article 29 No organization or individual other than the tax authorities， tax officials and the institutions and personnel authorized by the tax authorities in accordance with the law or administrative regulations shall partake in tax collection.
　　Article 30 Tax withholding agents shall fulfill their obligations of withholding or collecting tax in accordance with the law or administrative regulations. Institutions and individuals with no obligation of withholding and collecting tax in accordance with the law or administrative regulations shall not be asked by tax authorities to withhold or collect tax.
　　Taxpayers shall cooperate when tax withholding agents fulfil their obligation of withholding and collecting tax. Should a taxpayer refuses to do so， the tax withholding agent shall report the case to the tax authorities to deal with.
　　The tax authorities shall pay a commission to the withholding agent for the job done.
　　Article 31 Taxpayers and withholding agents shall pay or hand over tax withheld to the tax authorities in accordance with the law or administrative regulations and within the time limit prescribed by the tax authorities in accordance with the law or administrative regulations.
　　Should a taxpayer have particular difficulty paying tax within the prescribed time limit， he may be allowed to postpone the tax payment for a maximum of three months with the approval of the SAT local office or local tax bureau of a province， autonomous region and municipality directly under the State Council.
　　Article 32 A taxpayer failing to pay tax or a withholding agent failing to hand over the tax payment within the prescribed time limit shall be ordered by the tax authorities to pay or hand over the tax and imposed a daily surcharge on the overdue part at 0.5‰of the overdue amount beginning from the day the deferral begins.
　　Article 33 A taxpayer may submit a written application for tax reduction or exemption to the tax authorities in accordance with the law or administrative regulations.
　　Applications for tax reduction or exemption shall be examined and approved by the authorities designated by the law or administrative regulations with the power to examine and approve applications for tax reduction or exemption. Decisions on tax reduction or exemption made by local people's governments at all levels， the responsible departments of people's governments at all levels or institutions or individuals in violation of the law or administrative regulations shall be null and void and the tax authorities shall refuse to implement and shall report the case to the higher tax authorities.
　　Article 34 The tax authorities shall issue tax payment documents to the taxpayer on tax collected. A tax withholding agent shall give the taxpayer a receipt of the tax withheld or collected at the request of the taxpayer.
　　Article 35 Should a taxpayer fall into one of the following cases， the tax authorities shall have the right to assess the amount of tax payable：
　　1. No account books are kept in accordance with the law or administrative regulations；
　　2. Account books that should have been kept in accordance with the law or administrative regulations have not been kept；
　　3. The taxpayer has destroyed account books without permission or refuses to provide information related to tax payment；
　　4. Although account books are kept， account entries are messy and information of costs， and vouchers on income and expenses are incomplete， making account inspection difficult；
　　5. The taxpayer fails to file tax returns in time upon occurrence of tax liability and further fails to file tax returns in time after the tax authorities have ordered him to pay tax；
　　6. The taxable incomes reported in tax returns by the taxpayer are obviously too low without a proper reason.
　　The specific procedure and methods of assessing the amount of tax payable shall be determined by the competent taxation department of the State Council.
　　Article 36 Receipts and/or payments of charges and fees in business transactions between the establishment（s） or site（s） engaged in production or business operation set up in China by an enterprise or a foreign enterprise and its associated enterprise（s） shall be made as arms-length dealings. Should they be handled not as arms-length dealings， the tax authorities shall have the right to make proper readjustment of the taxable incomes or proceeds which have shrunk.
　　Article 37 Where a taxpayer engaged in production or business operation without tax registration in accordance with the regulations and a taxpayer temporarily engaged in business operation， the tax authorities shall assess the amount of tax payable thereof and order the taxpayer to pay tax； and where tax remains unpaid， the tax authorities may detain the commodity or goods thereof in a value to the equivalent of the amount of tax payable. When tax is paid afterward， the tax authorities shall lift the detention of the commodities or goods and return the commodities or goods to the taxpayer without delay； and if the tax payable is still unpaid despite the detention， the tax authorities may， upon approval of the director of a tax bureau （or sub-bureau） of or higher than the county level， sell the detained goods by auction or on the market for the returns to offset the unpaid tax.
　　Article 38 Where the tax authorities have grounds to believe that a taxpayer engaged in production or business operation has dodged tax payment， the tax authorities may， prior to the expiration of the prescribed time limit for tax payment， order the taxpayer to pay the tax within the prescribed time limit. Should the taxpayer have obviously been discovered to have moved away or hidden his taxable commodities， goods or other assets or taxable income during the prescribed time limit for tax payment， the tax authorities may order the taxpayer to provide a guarantee for tax payment. Should the taxpayer fail to provide guarantee for tax payment， the tax authorities may， upon approval by the director of a tax bureau （or sub-bureau） of or higher than the county level， take the following measures for the preservation of the tax revenue.
　　1. Notify in writing the bank or other financial institution with which the taxpayer has opened accounts to freeze the portion of the account to the equivalent of the amount of tax payable.
　　2. Detain or seal up the taxpayer's taxable commodities， goods or other property the value of which is equivalent to the amount of tax payable.
　　Where the taxpayer pays the tax within the time limit as prescribed in the preceding passage， the tax authorities shall immediately lift the measures for preserving the tax revenue. In the event that the taxpayer still fails to make the tax payment on expiration of the prescribed time limit for tax payment， the tax authorities may notify the taxpayer's account bank or other financial institution to withhold the frozen account for tax payment or sell by auction or on the market the commodities， goods or property which have been detained or sealed to make good for the payment of the amount of tax payable.
　　The measures for preserving tax revenue shall not cover the residential house and daily use articles necessary for the subsistence of the taxpayer and the dependent family members thereof.
　　Article 39 Where the taxpayer has paid up the tax payable within the prescribed time limit and the tax authorities have failed to lift the measures for preserving tax revenue in time thus inflicting losses to the legitimate rights of the taxpayer， the tax authorities shall assume due responsibility of making compensation for the losses thereof.
　　Article 40 In the event the taxpayer engaged in production or business operation， or the withholding agent or the guarantor for the tax payment fails to pay the tax payable， hand over the tax payment withheld or pay the tax payable guaranteed within the prescribed time limit， the tax authorities shall order tax payment within the prescribed time limit， and if the tax payable remains unpaid， the tax authorities may， upon approval by the director of the tax bureau （or sub-bureau） of or higher than the county level， take the following compulsory measures for the payment of the tax payable：
　　1. .Notify in writing the taxpayer's account bank or other financial institution to withhold the account thereof for payment of the amount of tax payable；
　　2. Detain， seal off， or sell by auction or on the market the taxpayer's commodities， goods or other property in a value to the equivalent of the amount of tax payable to make good for it.
　　In taking compulsory measures for preserving tax revenue， the tax authorities shall at the same time take compulsory measures to retain the surcharge on overdue tax payment from the taxpayer， withholding agent or guarantor as provided in the previous passage.
　　The compulsory measures shall not cover the residential house and daily use articles necessary for the subsistence of the party concerned and the family dependents thereof.
　　Article 41 No institution or individual other than the statutory tax authorities shall wield the power of taking measures for preserving tax revenue and compulsory measures for law enforcement provided in Article 37， Article 38 and Article 40 of this Law.
　　Article 42 The tax authorities in taking measures for preserving tax revenue and compulsory measures for law enforcement shall act in accordance within the scope of power and procedure prescribed by the law and shall not seal off or detain the residential house and daily use articles necessary for the subsistence of the taxpayer and the family dependents thereof.
　　Article 43 In the event that the tax authorities abuse the power of taking measures for preserving tax revenue or compulsory measures for law enforcement or take measures for preserving tax revenue or compulsory measures for law enforcement inappropriately， thus hurting the legitimate rights of the taxpayer， withholding agent or tax payment guarantor， the tax authorities shall be responsible for compensation in accordance with the law.
　　Article 44 Should a taxpayer or the legal representative thereof owing tax payments need to leave China， he should pay up the tax and surcharge for overdue tax payment or provide guarantee to the tax authorities before his departure from China. Otherwise the tax authorities shall notify the frontier authorities to prevent him from leaving China.
　　Article 45 The tax authorities shall collect tax with priority to liability without guarantee， unless otherwise provided by the law. Should the tax payable by a taxpayer be due prior to the establishment of his property as mortgage， pledge or object of retention， tax payment shall have the priority to the right of mortgage， pledge or retention.
　　A taxpayer owing tax payment and at the same time being fined and/or confiscated of illegal income by the administrative department， payment of tax shall come prior to the fine and confiscation of illegal income.
　　The tax authorities shall periodically make public the information of the taxpayers of overdue tax payments.
　　Article 46 In the event a taxpayer with tax payment overdue sets his property as mortgage or pledge， he should inform the mortgagee or pledge beneficiary of his tax liabilities. The latter may request the tax authorities to provide the information of the taxpayer's tax liabilities.
　　Article 47 The tax authorities shall issue receipts on commodities， goods and other property detained and produce a list of the commodities， goods or other property sealed off.
　　Article 48 In the case of a merger or division of a taxpayer， it should report to the tax authorities and clear up tax payments due. Where tax payment has not been paid before a merger， the taxpayer after the merger shall continue to perform the duty of paying tax； where tax has not been paid after a division of the taxpayer， the taxpayers following the division shall assume the joint liability of the tax payment due.
　　Article 49 Should a taxpayer with a large amount of tax payable due intends to dispose of its fixed assets and major property， it shall report the case to the tax authorities in advance before taking any action.
　　Article 50 Where a taxpayer is reluctant to realize a creditor's claim， or has given up a mature claim， or transfers a property free or at an obviously too low price to another party with the beneficiary in the know thus hurting the state tax revenue， the tax authorities may exercise the rights of subrogation and revocation in accordance with the provisions of Article 73 and Article 74 of the Contract Law.
　　When the tax authorities exercise rights of subrogation and revocation in accordance with the provisions cited in the previous passage， it does not mean the waiver of the taxpayer's unfinished tax paying obligation and the legal liabilities the taxpayer should assume.
　　Article 51 In case a taxpayer has overpaid the amount of tax payable， the tax authorities upon discovery should immediately return the excess payment to the taxpayer. And if the taxpayer discovers the mistake within three years after the settlement of the tax payment， it may make a claim to the tax authorities for the excess payment plus the interest at the rate of a bank deposit of the same term and the tax authorities after verification of the case should lose no time to return the excess payment together with the interest thereof. In the event the case involves the procedure of retri* from the state treasury， the rebate shall be made in accordance with the provisions of the relevant laws and administrative regulations with regard to the administration of the state treasury.
　　Article 52 In the event that a taxpayer or withholding agent has not paid or has underpaid tax owing to a mistake on the part of the tax authorities， the tax authorities may ask the taxpayer or withholding agent to pay up the tax before three years have passed but no surcharge for overdue tax payment shall be imposed.
　　In case a taxpayer or withholding agent has not paid or has underpaid tax owing to miscalculation or other mistakes on the part of the taxpayer or withholding agent， the tax authorities may recourse for the tax payment plus a surcharge for the overdue tax payment before three years have passed； and the term for recourse for payment may prolong to five years in special circumstances.
　　There shall be no time limit as prescribed in the previous passage for the tax authorities to demand payment of unpaid， underpaid tax and surcharge for overdue tax payment resulting from tax evasion， resistance or fraud.
　　Article 53 The SAT local offices and local tax bureaus shall collect tax and place the tax revenue into the state treasury within the prescribed scope and at the budgetary classes for tax revenue into the State Treasury in accordance with the State regulations.
　　In the event the state auditing department or financial department uncovers law-breaking conducts in tax collection， the tax authorities shall act on the resolutions or proposals of the relevant authorities， hand the tax payments due and surcharge for overdue tax payments over to the State Treasury according to the budgetary classes for tax revenue into the State Treasury and notify the relevant authorities of the results of handling of the case in good time.
　　Chapter IV Tax Inspection
　　Article 54 The tax authorities shall have the right to conduct tax inspections as follows：
　　1. To inspect a taxpayer's account books， supporting vouchers for the accounts， statements and the relevant information； to inspect a withholding agent's account books， supporting vouchers for the accounts and the relevant information in respect of the account of tax withheld and handed over or collected and handed over.
　　2. To inspect a taxpayer's taxable commodities， goods or other property at the taxpayer's place where production or business operation is conducted and places where goods are stored； to inspect a withholding agent's operational conditions in respect of the withholding and hand-over of tax payments or the collection and hand-over of tax payments.
　　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 handed over or collected and handed over.
　　4. To question a taxpayer or withholding agent regarding issues and circumstances related to the payment of tax or the amount of tax withheld and handed over or collected and handed over.
　　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 by the director of the tax bureau （or sub-bureau） at or above the county level， to inquire into the deposit accounts that a taxpayer engaged in production or business operation or a withholding agent has opened with the banks or other financial institutions， on presentation of a nationally unified certificate for the inspection of deposit accounts. Upon approval by the director of a tax bureau （or sub-bureau） at or higher than the level of the municipality with districts or an autonomous prefecture， the tax authorities， in investigating into a case of violating tax laws， may investigate the savings deposits of a suspect thereof. The tax authorities shall not use the information obtained in the course of investigation for purposes other than the investigation related to tax payment.
　　Article 55 When the tax authorities， in the course of making investigation of the situation of tax payments of a taxpayer engaged in production or business operation in the previous term in accordance with the law， discovers the taxpayer's behavior of tax evasion， obvious transfer or concealment of taxable commodities， goods or other property or taxable income， the tax authorities may take tax revenue preserving measures or compulsory measures for law enforcement within the scope of power of authorization provided by this Law.
　　Article 56 A taxpayer or withholding agent must accept the tax inspection conducted by the tax authorities in accordance with the law， report the state of affairs accurately and provide relevant information， and shall not refuse to cooperate and shall not conceal any fact.
　　Article 57 The tax authorities in making tax inspections shall have the power of inquiring the institutions and individuals concerned of the situation of the taxpayer or withholding agent in paying， withholding and handing over or collecting and handing over tax payments， and the institutions and individuals concerned shall have the obligation of providing truthful information and evidence in respect thereof.
　　Article 58 When investigating a tax case of violation of tax laws， the tax authorities may record， tape-record， videotape， photograph and/or reproduce the relevant situation and information related to the case.
　　Article 59 When conducting tax inspection， the tax inspectors sent by the tax authorities shall produce tax inspection identity cards and tax inspection notice and shall be responsible for maintaining confidentiality for the persons under investigation. If the inspecting official fails to show tax inspection ID and notification documents， the party concerned may refuse the inspection.
　　Chapter V Legal Liabilities
　　Article 60 Where a taxpayer has one of the following activities， the tax authorities shall order it to make rectification within the prescribed time and impose a fine up to 2，000 yuan； and in a grave case， impose a fine ranging from 2，000 to 10，000 yuan.
　　1. Failure to apply for tax registration， change or cancellation of tax registration within a prescribed time limit；
　　2. Failure to establish or keep account books， or keep the supporting vouchers for 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 and/or accounting software to the tax authorities for the record in accordance with the relevant provisions；
　　4. Failure to inform the tax authorities of all of its bank account numbers；
　　5. Failure to install and use tax control installations or having destroyed or randomly refit the tax control installations.
　　Should a taxpayer fail to complete tax registration， the tax authorities shall order it to make rectification； and should the taxpayer fail to make rectification within the prescribed time limit， the tax authorities shall notify the administration for industry and commerce to revoke the taxpayer's business license.
　　Should a taxpayer fail to use the certificate of tax registration properly in accordance with the relevant provisions or have lent out， adulterated， damaged， bought or sold or forged tax registration certificates， the tax authorities shall impose a fine ranging from 2，000 yuan to 10，000 yuan， and in a grave case， a fine ranging from 10，000 yuan to 50，000 yuan.
　　Article 61 Should a withholding agent fail to establish and keep account books and the supporting vouchers for the accounts of the tax payments withheld and handed over or collected and handed over and the relevant information thereof， the tax authorities shall order it to make rectification within the prescribed time limit and may impose a fine up to 2，000 yuan； and in a grace case， impose a fine ranging from 2，000 yuan to 5，000 yuan.
　　Article 62 Should a taxpayer fail to file tax returns and present the relevant information in connection with tax payments or a withholding agent fail to furnish the tax authorities with statements of the tax payments withheld and handed over or collected and handed over， the tax authorities shall order it to make rectification within the prescribed time limit and may impose a fine up to 2，000 yuan and in a grave case， impose a fine ranging from 2，000 yuan to 10，000 yuan.
　　Article 63 It shall be deemed a case of tax evasion when a taxpayer forges， revises， conceals or destroys without official permission its account books or supporting vouchers for the accounts， or overstates the expenses or does not state or understates incomes in account books， or refuses to file tax returns despite notification by the tax authorities， or files fraudulent tax returns， or refuses to pay or underpays the amount of tax payable. To a taxpayer who has dodged tax payment， the tax authorities shall order it to pay the amount of tax payable unpaid or underpaid and a surcharge for overdue tax payment and impose a fine ranging from 50% to 500% of the amount of the tax amount unpaid or underpaid； if the case constitutes a crime， criminal responsibilities shall be sought.
　　Should a withholding agent fail to hand over all or part of the tax payments it has withheld by taking the measures cited above， the tax authorities shall order it to pay the tax payments it has not paid or underpaid and a surcharge for overdue tax payment and impose a fine ranging from 50% to 500% of the unpaid or underpaid amount of the tax payment withheld； and if the case constitutes a crime， criminal responsibilities shall be sought.
　　Article 64 Should a taxpayer or withholding agent forge evidence for tax assessment， the tax authorities shall order it to make rectification with the prescribed time limit and impose a fine up to 50，000 yuan.
　　Should a taxpayer fail to file tax returns and fail to pay all or part of the amount of tax payable， the tax authorities shall order it to pay the unpaid tax payable and a surcharge on overdue tax payment and impose a fine ranging from 50% to 500% of the unpaid amount of the tax payable.
　　Article 65 Where a taxpayer owing a tax payable has transferred or concealed property and taken other means to prevent the tax authorities from recovering the tax payment， the tax authorities shall order it to pay the tax payable and a surcharge on overdue tax payment and impose a fine ranging from 50% to 500% of the unpaid tax payable； and if the case constitutes a crime， criminal responsibilities shall be sought.
　　Article 66 Where a taxpayer obtains tax refund from the State with fraudulent reports of exports or by other deceptive means， the tax authorities shall order it to return the refund and impose a fine ranging from 100% to 500% of the refund； and if the case constitutes a crime， criminal responsibilities shall be sought.
　　The tax authorities may suspend the procedure of tax refund for exports for a prescribed term to a taxpayer who has committed fraud in obtaining tax refund from the State for exports.
　　Article 67 It shall be deemed a case of resisting tax payment if the taxpayer refuses to pay tax by means of violence or threats， and the taxpayer shall be ordered by the tax authorities to pay the tax payable and a surcharge on overdue tax payment and the criminal responsibilities thereof shall be sought in accordance with the law. If the case is a minor one which is insufficient to constitute a crime， the tax authorities shall recover the unpaid tax payable and a surcharge on the overdue tax payment from the taxpayer and impose on him a fine ranging from 100% to 500% of the unpaid tax payable.
　　Article 68 Should a taxpayer or withholding agent fail to pay all or part of the tax payable or to hand over all or part of the tax payment withheld and after the tax authorities has ordered it to pay within a prescribed time limit and the taxpayer or withholding agent still refuses to make the due payment after the expiration of the time limit， the tax authorities may， in addition to demanding back the unpaid tax payable by taking the compulsory measures for law enforcement in accordance with the provisions of Article 40 of this Law， impose a fine ranging from 50% to 500% of the unpaid tax payable.
　　Article 69 Should a withholding agent fails to withhold a tax payment it should have withheld or to collect a tax payment it should have collected， the tax authorities shall demand back the tax payment and impose on the withholding agent a fine ranging from 50% to 300% of the tax payable it has failed to withhold or collect.
　　Article 70 Should a taxpayer or withholding agent evade， refuse or take other measures to prevent tax inspection by the tax authorities， the tax authorities shall order it to make rectification and impose a fine of up to 10，000 yuan； and in a grave case， a fine of up to 50，000 yuan.
　　Article 71 For a case of illegally printing invoices in violation of the provisions of Article 22 of this Law， the tax authorities shall have the illegally printed invoices destroyed， confiscate the illegitimately acquired income therefrom and the criminal tools and impose a fine ranging from 10，000 yuan to 50，000 yuan； and if the case constitutes a crime， criminal responsibilities shall be sought.
　　Article 72 Should a taxpayer engaged in production or business operation or a withholding agent having violated the provisions of this Law on tax collection refuse to accept the punishment given by the tax authorities， the tax authorities may revoke the invoices issued or stop providing invoices to it.
　　Article 73 Should the account banks and other relevant financial institutions of the taxpayer or withholding agent refuse the tax authorities checking the deposit accounts of the taxpayer or withholding agent or refuse to carry out the resolution of the tax authorities on freezing the deposit accounts thereof or on making withholdings for the tax payable thereof， or assist the taxpayer or withholding agent in moving away the deposit accounts upon notification of the tax authorities in respect thereof thus causing loss of the tax revenue to the State， the tax authorities may impose a fine ranging from 100，000 yuan to 500，000 yuan on the bank concerned and a fine ranging from 1，000 yuan to 10，000 yuan on the person of principal responsibility and those of direct responsibilities.
　　Article 74 The administrative penalties of a fine of no more than 2，000 yuan as provided in this Law may be meted out by a tax office.
　　Article 75 Proceeds of tax authorities and judicial departments from fines on violations of tax laws shall go to the State Treasury according to the budgetary classes for tax revenue remitted into the State Treasury.
　　Article 76 Should the tax authorities alter the administrative jurisdiction of tax collection or the budgetary classes for tax revenue into the State Treasury without proper authorization， they shall be ordered to make rectification and the leading responsible member and other personnel with direct responsibilities shall be penalized by demotion or dismissal from office.
　　Article 77 A taxpayer or withholding agent with a conduct suspected of criminal activities in violation of the provisions of Articles 63， 65， 66， 67 and/or 71 of this Law， the tax authorities shall bring the case to the judicial department to seek criminal responsibilities in accordance with the law.
　　Should a tax official bend the law for the benefit of friends by refusing to bring to the judicial department to seek criminal responsibilities a case that should be brought to the judicial department and the case is grave in nature， the tax official in question shall be sought criminal responsibilities in accordance with the law.
　　Article 78 Anyone who has collected tax without the authorization by the tax authorities shall be ordered to return the proceeds therefrom and given administrative sanctions or administrative penalties； and if the case has damaged the legitimate rights and interests of other parties， the person in question shall assume the responsibility of making compensation and if the case constitutes a crime， criminal responsibilities shall be sought in accordance with the law.
　　Article 79 Tax authorities or a tax official who has sealed or detained the residential house and other daily use articles necessary for the subsistence of the taxpayer and or the family dependents thereof shall be ordered to return what have been sealed off or detained and be given administrative sanctions in accordance with the law； and if the case constitutes a crime， criminal responsibilities shall be sought in accordance with the law.
　　Article 80 Where tax officials collude with taxpayers or withholding agents， or instigate or assist the same to commit the offenses specified in Articles 63， 65， and 66 of this Law， criminal responsibilities shall be sought in accordance with the law if the case constitutes a crime； or administrative sanctions shall be meted out in accordance with the law if the case does not constitute a crime.
　　Article 81 Where a tax official takes advantage of his position and power to accept or extort money or material benefits from a taxpayer or withholding agent， criminal responsibilities shall be sought in accordance with the law if the case constitutes a crime； or administrative sanctions shall be meted out in accordance with the law if the case does not constitute a crime.
　　Article 82 Where a tax official neglects his duty and fails to collect or under-collects the amount of tax payable thus causing heavy losses to the State tax revenue， criminal responsibilities shall be sought in accordance with the law if the case constitutes a crime； or administrative sanctions shall be meted out in accordance with the law if the case does not constitute a crime.
　　Should a tax official abuse his power and deliberately create difficulties for a taxpayer or withholding agent， the person in question shall be removed from office and given administrative sanctions in accordance with the law.
　　A tax official who attacks or takes revenge of the taxpayer， or withholding agent or any other person who has exposed the law-breaking conduct of the tax official shall be given administrative sanctions in accordance with the law and if the case constitutes a crime， criminal responsibilities shall be sought in accordance with the law.
　　Should a tax official in violation of the law or administrative regulations intentionally over-assess or under-assess the taxable output for agricultural tax thus leading to over-collection or under-collection of tax thus damaging the legitimate rights and interests of the farmers or the interests of the State， criminal responsibilities shall be sought in accordance with the law if the case constitutes a crime or administrative sanctions shall be given in accordance with the law if the case does not constitute a crime.
　　Article 83 Where tax is collected ahead of or behind the schedule， or apportioned in violation of the law or administrative regulations， rectification shall be demanded by the higher tax authorities or administrative supervisory department and the leading personnel in charge and other personnel with direct responsibilities shall be given administrative sanctions in accordance with the law.
　　Article 84 Where unauthorized decisions are made on starting or stopping tax collection， or on tax reduction， exemption， refunding or additional tax in violation of the provisions of the law or administrative regulations or other decisions running counter to tax laws and relevant administrative regulations， such decisions shall be revoked in accordance with the provisions of this Law， and the tax unpaid shall be collected and the excess tax payment shall be reimbursed； and the tax authorities of the higher level shall seek administrative responsibilities with the leading personnel in charge and other personnel with direct responsibilities， and if the case constitutes a crime， criminal responsibilities shall be sought in accordance with the law.
　　Article 85 Should tax officials in collecting tax or handling a case of breaking tax law have failed to observe the rule of avoidance in accordance with the provisions of this Law， the leading personnel in charge and other personnel with direct responsibilities shall be given administrative sanctions in accordance with the law.
　　Article 86 If an act in violation of the tax law and relevant administrative regulations that should have been given administrative sanctions has not been discovered in five years， no more administrative sanction shall be given.
　　Article 87 For failure to keep confidential the information of a taxpayer， withholding agent or informer， the leading personnel in charge and other personnel with direct responsibilities shall be given administrative sanctions by the tax authorities in charge or other relevant departments in accordance with the law
　　Article 88 A taxpayer， withholding agent， or tax payment guarantor involved in a dispute with the tax authorities shall pay or hand over tax payment and surcharge for overdue tax payment or provide guarantee in the first place and then apply for an administrative review in accordance with the law； should the party concerned not be reconciled to the resolution after the administrative review， legal proceedings may be instituted with the people's court in accordance with the law.
　　Should the party concerned not be reconciled to a decision by the tax authorities on penalty， compulsory measures for enforcement or measures for preservation of tax revenue， it may apply for an administrative review or bring the case to the people's court in accordance with the law.
　　Where the party concerned has failed to demand administrative review of the punishment decision of the tax authorities or bring the case to the people's court within the prescribed time limit but refuses to accept the penalty， the tax authorities having made the decision on punishment may take compulsory measures for the enforcement of its decision in accordance with the provisions of Article 40 of this Law or request the people's court for legal enforcement.
　　Chapter VI Supplementary Provisions
　　Article 89 A taxpayer or withholding agent may authorize an agent to handle his tax affairs.
　　Article 90 The specific rules for the administration of tax on the use of farmland， tax on title deeds， agricultural tax and animal husbandry tax shall be formulated separately by the State Council.
　　The administration of customs duties and the taxes to be collected by the Customs on behalf of the tax authorities shall be implemented in accordance with the relevant provisions of the law or administrative regulations.
　　Article 91 Should certain provisions of the relevant tax treaties and agreements concluded between the People's Republic of China and foreign countries be found at variance with the provisions of this Law， the provisions of the treaties and agreements shall prevail.
　　Article 92 Should the tax laws promulgated prior to this Law be found at variance with the provisions of this Law， this Law shall prevail.
　　Article 93 Rules for the implementation of this Law shall be formulated by the State Council.
　　Article 94 This Law shall go into effect as from May 1， 2001.