Provisions on the Procedures for the Handling of Tax Auditing Cases

(Issued by Order No. 52 of the State Taxation Administration on July 12, 2021, effective from August 11, 2021)

Chapter I General Provisions

Article 1 For the purposes of implementing the Opinions on Further Deepening the Reform of Tax Collection and Administration issued by the General Office of the CPC Central Committee and the General Office of the State Council, guaranteeing the implementation of laws and administrative regulations on taxation, regulating the procedures for the handling of tax auditing cases, reinforcing the supervision and restraint mechanisms, and protecting the lawful rights and interests of taxpayers, withholding agents and other tax-related parties, these Provisions are developed in accordance with the Law of the People's Republic of China on the Administration of Tax Collection (hereinafter referred to as the “Law on the Administration of Tax Collection”), the Detailed Rules for the Implementation of the Law of the People's Republic of China on the Administration of Tax Collection (hereinafter referred to as the “Detailed Rules for the Implementation of the Law on the Administration of Tax Collection”) and other applicable laws and administrative regulations.

Article 2 These Provisions shall apply to the handling of tax auditing cases by auditing bureaus.

Article 3 Tax auditing cases shall be handled by taking facts as the basis and laws as the yardstick under the principles of equality, impartiality, openness and efficiency.

Article 4 Tax auditing shall be conducted by auditing bureaus in accordance with the law. The major duties of auditing bureaus are to inspect and review the performance of tax payment obligations, withholding obligations and tax-related matters of taxpayers, withholding agents and other tax-related parties in accordance with the law, and other related work centering on inspection and review. The specific duties of auditing bureaus shall be determined by the STA in accordance with the Law on the Administration of Tax Collection, the Detailed Rules for the Implementation of the Law on the Administration of Tax Collection, and other relevant provisions of the state.

Article 5 Auditing bureaus shall handle tax auditing cases under the principles of division of duties and restriction in case selection, inspection, trial, and enforcement.

Article 6 Auditing bureaus shall conduct tax audits within the scope announced by taxation bureaus to the society. Tax authorities at a higher level may designate the jurisdiction to lower level authorities.

Where the jurisdiction of tax auditing is otherwise provided for by any law or administrative regulation on taxation or rule of the STA, such provisions shall prevail.

Article 7 Any dispute over the jurisdiction of tax auditing shall be settled through negotiation by the parties to the dispute level by level under the principle of being conducive to the handling of cases; if no agreement is reached through negotiation, the dispute shall be reported to the common superior tax authority for decision-making.

Article 8 Tax inspectors who fall under any of the circumstances requiring withdrawal prescribed by the Detailed Rules for the Implementation of the Law on the Administration of Tax Collection shall withdraw.

Where an inspectee applies for the withdrawal of a tax inspector, or a tax inspector applies for his or her withdrawal, the director of the auditing bureau shall decide whether to withdraw or not in accordance with the law. If the director of the auditing bureau finds that any tax inspector falls under any of the circumstances requiring withdrawal, the director shall demand the inspector to withdraw. The withdrawal of the director of the auditing bureau shall be decided upon examination by the director of the taxation bureau in accordance with the law.

Article 9 Tax inspectors shall keep confidential state secrets, trade secrets, personal privacy, and personal information to which they have access during the process of tax auditing in accordance with the law.

Any tax-related violation of law committed by any taxpayer, withholding agent or any other tax-related party does not fall within the scope of confidentiality.

Article 10 A tax inspector shall abide by work disciplines, observe professional ethics, and shall not commit any of the following acts:

(1) Exercising his or her powers in violation of legal procedures or beyond the scope of authority.

(2) Taking advantage of his or her powers to seek benefits for himself or herself or other people.

(3) Neglecting duties or failing to perform statutory duties.

(4) Divulging any state secret or work secret or communicating in private with or divulging case information to the inspectee.

(5) Practicing fraud or intentionally exaggerating or concealing case information.

(6) Accepting treats or gifts from the inspectee or committing any other conduct that affects the impartial performance of official duties.

(7) Other violations of laws and disciplines.

Any tax inspector who abuses power, neglects duty or practices favoritism or makes falsification in law enforcement and case handling shall be seriously punished in accordance with the relevant provisions; whoever suspected of any crime shall be transferred to the judicial authority for handling in accordance with the law.

Article 11 The whole process of the initiation of case handling, investigation and evidence collection, examination, decision-making, service, and enforcement, among others, in the handling of tax auditing cases shall be recorded in such forms as text and audio and video recordings.

Chapter II Case Selection

Article 12 The auditing bureau shall strengthen the management of the sources of auditing cases, comprehensively collect and review case source information, and select the inspectees in a reasonable and accurate manner. The management of case sources shall be governed by the relevant provisions of the STA.

Article 13 After an inspectee is determined, case filing and inspection shall be conducted with the approval of the director of the auditing bureau.

When necessary, the auditing bureau may conduct inspection before case filing in accordance with the provisions of laws and regulations.

Article 14 The auditing bureau shall make overall arrangements on inspection, and strictly control the frequency of inspection of taxpayers and withholding agents.

Chapter III Inspection

Article 15 Prior to inspection, the auditing bureau shall inform the inspectee of the inspection time and the materials that need to be prepared, among others, except that advance notice will obstruct inspection.

Inspection shall be jointly conducted by two or more inspectors qualified for law enforcement, and the inspectors shall produce their tax inspection certificates, produce or serve a tax inspection notice, and inform the inspectee of the rights and obligations thereof.

Article 16 Inspection shall be conducted according to statutory authorities and procedures by such methods as on-site inspection, retrieval of account books and materials, inquiry and search of deposit accounts or savings deposits, and assistance in investigation at different places.

As for an inspectee subject to management and accounting by the electronic information system, the inspector may require the inspectee to open the electronic information system, or provide duplicates consistent with the original electronic data and technical materials of the electronic information system. If the inspectee refuses to open or provide them, with the approval of the director of the auditing bureau, proper technical means may be adopted to directly inspect the electronic information system, or electronic data may be retrieved and copied for inspection, provided that the adopted technical means shall not destroy the original electronic data of the electronic information system or affect the normal operation of the electronic information system.

Article 17 Evidentiary materials shall be collected according to statutory powers and procedures in inspection. The collected evidence shall be verified upon investigation and relate to the matters to be proved.

Evidentiary materials may not be collected or obtained by the following means:

(1) Evidentiary materials are collected in serious violation of statutory procedures.

(2) Obtainment by means in violation of compulsory provisions of laws, which infringe upon others' lawful rights and interests.

(3) Obtainment by inducement, fraud, coercion, violence or other means.

Article 18 When account books, bookkeeping vouchers, statements and other relevant materials are retrieved, a notice on the retrieval of account books and materials shall be issued to the inspectee, and the list of account books and materials retrieved shall be entered and delivered to the inspectee for signature and confirmation after verification.

Where account books, bookkeeping vouchers, statements and other relevant materials of a taxpayer or withholding agent in previous fiscal years need to be retrieved, it shall be subject to the approval of the director of the taxation bureau at or above the county level, and the aforesaid materials shall be returned completely within three months; if account books, bookkeeping vouchers, statements and other relevant materials of a taxpayer or withholding agent in the current year are retrieved, it shall be subject to the approval of the director of the taxation bureau at or above the level of a districted city or autonomous prefecture, and the aforesaid materials shall be returned within 30 days.

When account books and materials are returned, the inspectee shall check and retrieve the list of account books and materials and affix the signature and seal for confirmation.

Article 19 Where the original copies of evidentiary materials need to be retrieved, a special receipt for evidence retrieval shall be issued to the party, who shall affix his or her signature or seal for confirmation upon verification. Original copies of evidentiary materials that need to be returned shall be returned in a timely manner after the completion of inspection, and relevant signature formalities for receipt shall be undergone. When any paper invoice that has been issued needs to be retrieved for inspection, the invoice exchange certificate shall be issued to the entity or individual under inspection. When a blank paper invoice needs to be retrieved for inspection, the receipt for the retrieval of a blank invoice for inspection shall be issued to the entity or individual under inspection, and the invoice shall be returned in a timely manner if no problem is found upon inspection, and the relevant signature formalities for receipt shall be undergone.

Where the duplicates of evidentiary materials need to be drawn, the party or the entity (or individual) keeping the originals shall indicate on the duplicates that “consistent with the originals upon inspection” and the storage place of the originals, and signature and seal shall be affixed.

Article 20 Questioning shall be made by two or more inspectors. Except for questioning made at the production, operation and office premises of the inspectee, a questioning notice shall be served upon the questioned person.

The questioned person shall be informed of the relevant rights and obligations at the time of questioning. Questioning transcripts shall be delivered to the questioned person for verification or read out in his or her presence; in case of any amendments to the questioning transcripts, the questioned person shall affix his or her fingerprint to the amendments; after no error is found upon verification, the questioned person shall indicate that “I have read the aforesaid transcripts (or the transcripts have been read out in my presence), which are consistent with what I said” at the end of the last page and affix his or her signature, seal and fingerprint page by page. If the questioned person refuses to affix his or her seal, signature and fingerprint to the questioning transcripts, inspectors shall note it on the transcripts.

Article 21 The parties and witnesses may make statements or provide testimonies in a written or oral form. If the parties and witnesses make statements or provide testimonies in an oral form, inspectors shall make records in such forms as transcripts, video recordings and audio recordings. The transcripts may be handwritten or recorded and printed by computer, to which the signatures, seals and fingerprints of the parties or witnesses shall be affixed page by page.

Where the parties or witnesses orally request the modification of statements or testimonies, inspectors shall make transcripts for the modification and indicate the reason, to which the signatures, seals and fingerprints of the parties or witnesses shall be affixed page by page. If any party or witness modifies written statements or testimonies, the transcripts before modification shall not be returned.

Article 22 Where audio or video recordings or other audiovisual materials are produced, such contents as how, when, who and what shall be indicated.

When audiovisual materials are retrieved, the original carrier thereof shall be retrieved. If it is difficult to retrieve the original carrier, the duplicates may be retrieved, but such matters as how the reproduction is made, by whom, when and where the originals are kept shall be indicated.

For audio materials, written records of the audio contents shall be attached; and for image materials, necessary written explanations shall be attached.

Article 23 Where the facts of a case are proved by the content of electronic data, inspectors may require the parties to print the electronic data on paper, and a written note shall be made to indicate the source of data, the printing place, printing time or time of provision, and “consistent with electronic data upon verification,” and the signatures and seals of the parties shall be affixed.

Where electronic data need to be fixed by visible carrier, inspectors shall jointly copy electronic data on a memory medium, seal it jointly with the individual, the legal representative or chief financial officer of, or any other person authorized by an entity that provides the electronic data, indicating how it is made, when and by whom, and the file format and size, among others, on the sealed package, and “consistent with the electronic data recorded on the original carrier upon verification,” and the signature and seal of the provider of electronic data shall be affixed.

For the collection and extraction of electronic data, inspectors shall make on-site deposition transcripts indicating the source of electronic data, cause, the purpose or object of proof, the extraction time, place, method and process, the storage place of the original memory medium and the signature and seal of the electronic data memory medium, among others. In case of data compression, the compression method and integrity check value shall be indicated in the transcripts.

Article 24 When conducting on-site investigation and collecting evidence, inspectors may make on-site deposition transcripts and survey transcripts to record the on-site investigation and collection of evidence.

The on-site deposition transcripts and survey transcripts shall indicate such contents as time, place and event, to which inspectors shall affix their signatures and the parties shall affix their signatures and seals.

Where the party is not present at the scene upon notification or refuses to affix signature or seal to the on-site deposition transcripts or survey transcripts, inspectors shall indicate the reason on the transcripts; if any other person is present at the scene, he or she may affix his or her signature or seal for verification purposes.

Article 25 Where inspectors conduct investigation and collect evidence at a different place, the local tax authority shall provide assistance; and if a letter is sent to entrust the relevant auditing bureau to conduct investigation and collect evidence, when necessary, persons may be dispatched to participate in the investigation and evidence collection conducted by the entrusted auditing bureau, and the entrusted auditing bureau shall, according to the request for assisting in investigation, conduct investigation according to statutory authorities and procedures.

Where overseas materials are needed, the auditing bureau may request an international tax administration to obtain them according to the relevant procedures.

Article 26 The inquiry of the deposit account of a taxpayer or withholding agent engaged in production and operations at the relevant bank or any other financial institution may be made based on the license for the inspection of the deposit account with the approval of the director of the taxation bureau at or above the county level.

The inquiry of the savings deposit of a person involved in a case at the relevant bank or any other financial institution may be made based on the license for the inspection of the deposit account with the approval of the director of the taxation bureau at or above the level of a districted city or autonomous prefecture.

Article 27 Where the inspectee falls under any of the following circumstances, it shall be handled according to the provisions of the Law on the Administration of Tax Collection and the Detailed Rules for the Implementation of the Law on the Administration of Tax Collection on the obstruction of tax inspection by evasion, refusal or any other form:

(1) Providing false materials, failing to truthfully report relevant information, or refusing to provide relevant information.

(2) Refusing or obstructing the tax authority's note taking, sound recording, video recording, photographing or duplication of any information and materials relating to a case.

(3) Shifting, concealing, or destroying relevant materials during inspection.

(4) Other circumstances of not accepting tax inspection according to law.

Article 28 Where a tax authority has good reasons to believe that a taxpayer engaged in production or operations is guilty of evading tax payment obligations, the tax authority may, before the expiry of the prescribed tax payment period, order the taxpayer to pay the tax payable within a prescribed time limit. If the tax authority discovers any evident sign that the taxpayer has shifted or concealed the taxable commodities, goods and other properties, or taxable income within the prescribed time limit, the tax authority 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 authority may take tax compulsory measures in accordance with the law with the approval of the director of the taxation bureau at or above the county level.

Where the tax authority finds that the taxpayer is guilty evading tax payment obligations and has evident sign of prominently shifting and concealing the taxable commodities, goods and other properties or taxable income in the process of inspecting the tax payment of taxpayers that engage in production and operations, it may legally take tax enforcement measures, subject to approval of the director of the taxation bureau at or above the county level.

Article 29 The auditing bureau shall, when taking tax enforcement measures, deliver a written decision of tax compulsory measures to the taxpayer, withholding agent and tax payment guarantor to inform them of the contents and grounds of as well as the basis for the tax enforcement measures, in addition to the rights and relief channels enjoyed by them in accordance with the law, and perform other procedures provided for by laws and regulations.

The auditing bureau shall, when freezing the deposits of a taxpayer at the account opening bank or any other financial institution, deliver a written deposit freezing notice to the bank where the taxpayer opens the account or any other financial institution to freeze the deposits equivalent to the amount of tax payable; and deliver the written freezing decision to the taxpayer within three working days after making the freezing decision.

The auditing bureau shall, when placing under seal or impounding commodities, goods or other properties, deliver a written seizure or impoundment decision to the taxpayer, withholding agent or tax payment guarantor on the spot, make a list of the commodities, goods or other properties placed under seal or a special receipt for the impounded commodities, goods or other properties, to which the signature or seal of the party shall be affixed after verification. The seizure list and impoundment receipt shall be made in duplicate and one copy shall be retained by the party and the auditing bureau, respectively.

The auditing bureau shall, when placing under seal or impounding a movable or an immovable with a property certificate, serve a notice of assisting in tax enforcement upon the relevant entity in accordance with the law, notifying it not to undergo the formalities for the transfer of ownership of the movable or immovable during the seizure or impoundment period.

Article 30 The period of seizure or impoundment measures taken in accordance with paragraph 2 of Article 28 of these Provisions shall generally not exceed six months; if a major case falls under any of the following circumstances and an extension is needed, it shall be subject to approval of the STA.

(1) The case is complicated, and it is indeed difficult to find out facts of the case during the seizure or impoundment period.

(2) The inspectee shifts, conceals or destroys any account book, bookkeeping voucher or any other evidentiary materials.

(3) The inspectee refuses to provide relevant information or refuses or obstructs inspection in any other form.

(4) The removal of seizure or impoundment measures may lead to a taxpayer's shift, concealment, destruction or illegal disposal of any property, making taxes unrecoverable.

Except for the circumstances set forth in the preceding paragraph, the period for taking seizure, impoundment and freezing measures shall not exceed 30 days; if the circumstances are complicated, an extension may be made, subject to approval of the director of the taxation bureau at or above the county level, provided that the extension shall not exceed 30 days.

Article 31 Under any of the following circumstances, tax enforcement measures shall be removed in a timely manner in accordance with the law:

(1) The taxpayer has paid taxes within the time limit for performance, the withholding agent has paid the withholding tax within the time limit for performance, or the tax guarantor has paid the tax guarantee within the time limit for performance.

(2) The reconsideration authority decides to revoke the tax enforcement measures.

(3) The people's court rules to revoke the tax enforcement measures.

(4) Other circumstances where tax enforcement measures shall be removed in accordance with the law.

Article 32 When tax enforcement measures are removed, a written decision of removing tax enforcement measures shall be served upon the taxpayer, withholding agent and tax payment guarantor, informing them of the time, contents and basis of removing the tax enforcement measures and notifying them to handle the relevant matters of removing tax enforcement measures within the prescribed time limit.

If the measure of freezing deposits is taken, a notice of removing the freezing of deposits shall be served on the opening bank of the taxpayer or any other financial institution freezing the deposits so as to remove the freezing.

(2) If the measure of placing under seal commodities, goods, or other properties is taken, the seizure shall be removed and the list of commodities, goods, or other properties placed under seal shall be taken back.

(3) If the measure of impounding commodities, goods or other properties is taken, the impounded commodities, goods or other properties shall be returned, and the special receipt for the impounded commodities, goods or other properties shall be taken back.

Where the tax enforcement measures involve the entity assisting in enforcement, a notice of assisting in tax enforcement shall be served upon the entity assisting in enforcement, notifying it of the matters relating to the removal of tax enforcement measures.

Article 33 Where inspection cannot be carried out temporarily under any of the following circumstances, inspection shall be suspended with the approval of the director of the auditing bureau:

(1) The personal freedom of the party is restricted by the relevant authority in accordance with the law.

(2) The account books, bookkeeping vouchers and relevant materials are retrieved by any other state authority in accordance with the law and have not been returned.

Facts directly related to the tax-related violation of law need to be confirmed by the people's court or any other state authority.

(4) Other circumstances under which inspection may be suspended as provided for by laws, administrative regulations or the STA.

Where the circumstances requiring the suspension of inspection disappear, inspection shall be resumed with the approval of the director of the auditing bureau.

Article 34 Where inspection cannot be conducted under any of the following circumstances, inspection may be terminated with the approval of the director of the auditing bureau:

(1) The inspectee dies or is declared dead or is deregistered in accordance with the law, and there is evidence proving that it has no property available for tax payment or the subject undertaking statutory tax payment obligations.

(2) The tax-related violation of law of the inspectee has exceeded the statutory prosecution period.

(3) Any other circumstance under which inspection may be terminated in accordance with laws, administrative regulations or the provisions of the STA.

Article 35 Before the inspection closes, inspectors may inform the inspectee of found tax-related illegal act and basis.

Where the inspectee has any objection to the illegal act and basis, it shall provide an explanation and evidentiary materials within a prescribed time limit. If the inspectee makes oral statements, inspectors shall prepare written transcripts, to which the signature and seal of the party shall be affixed.

Chapter IV Trial

Article 36 The auditing bureau shall try a case after the end of inspection. If a case meets the standards for major tax-related cases, the auditing bureau shall, after trial, request the major tax-related case trial committee of the taxation bureau to try the case.

The trial of major tax-related cases shall be governed by the relevant provisions of the STA.

Article 37 The following contents shall be mainly examined in the trial of a case:

(1) Whether the enforcement subject is correct.

(2) Whether the inspectee is exact.

(3) Whether the tax-related illegal act is clear, whether evidence is sufficient, whether data is accurate, and whether materials are complete.

(4) Whether the applied laws, administrative regulations, rules and other regulatory documents are appropriate, and the determined nature is correct.

(5) Whether statutory procedures are conformed.

(6) Whether powers are exceeded or abused.

(7) Whether tax treatment and punishment recommendations are appropriate.

(8) Other matters or issues which shall be examined and confirmed.

Article 38 Under any of the following circumstances, supplements or correction shall be made or supplemental investigation shall be conducted:

(1) The inspectee is misidentified.

(2) The tax-related illegal act is unclear and the evidence is insufficient.

(3) Statutory procedures are not conformed to.

(4) Taxation documents are irregular or incomplete.

(5) Any other circumstance under which supplements or correction shall be made or supplemental investigation shall be conducted.

Article 39 Where a tax administrative punishment is to be imposed on the inspectee or any other tax-related party, a notice on tax administrative punishment matters shall be served on the inspectee or party, informing the latter of the right to make statements and arguments and request a hearing in accordance with the law. The notice on tax administrative punishment matters shall include the following contents:

(1) The name, valid identity certificate number or unified social credit code and address of the inspectee or any other tax-related party. In the absence of a unified social credit code, the taxpayer's identification number assigned by the tax authority shall be used.

(2) The determined tax-related illegal act and nature.

(3) The applicable laws, administrative regulations, rules and other regulatory documents.

(4) The tax administrative punishment to be imposed.

(5) Rights enjoyed by the party in accordance with the law.

(6) The document number and preparation date of the notice, and the name and seal of the tax authority.

(7) Other relevant matters.

Article 40 The inspectee or any other tax-related party may make statements and arguments in writing or orally. Transcripts of statements and arguments shall be made for the statements and arguments made by the party orally, which shall be faithfully recorded, and the signature or seal of the person making the statements or arguments shall be affixed.

Full attention shall be paid to the statements and arguments of the party; and if, upon review, the facts, grounds or evidence offered by the party are tenable, they shall be adopted.

Article 41 Where the inspectee or any other tax-related party requests a hearing in accordance with the requirements of laws, regulations and rules, a hearing shall be organized in accordance with the law.

The hearing shall be conducted according to the relevant provisions of the STA.

Article 42 Upon trial, the case shall be handled according to the following circumstances:

(1) If any tax-related violation of law is committed and a tax treatment decision shall be made, a written tax treatment decision shall be prepared.

(2) If any tax-related violation of law is committed and a tax administrative punishment decision shall be made, a written tax administrative punishment decision shall be prepared.

(3) If any tax-related violation of law is minor and a tax administrative punishment is not required in accordance with the law, a written decision of not imposing tax administrative punishments shall be prepared.

(4) If no tax-related violation of law is committed, the tax auditing conclusion shall be prepared.

The full name, document number and relevant clauses of the laws, administrative regulations, rules and other regulatory documents cited in the written tax treatment decision, the written tax administrative punishment decision, the written decision of not imposing tax administrative punishments and the tax auditing conclusion shall be indicated.

Article 43 A written tax treatment decision shall include the following major contents:

(1) The name, valid identity certificate number or unified social credit code and address of the inspectee. In the absence of a unified social credit code, the taxpayer's identification number assigned by the tax authority shall be used.

(2) Inspection scope and contents.

(3) The tax-related illegal act and the period thereof.

(4) Treatment decision and basis.

(5) Tax amount, payment period and place.

(6) Tax default time, methods for the calculation of overdue fine, payment period and place.

(7) Liability that shall be borne by the inspectee for failure to perform the treatment decision on time.

(8) Means of and time limit for applying for administrative reconsideration or filing an administrative lawsuit.

(9) The document number and preparation date of the written treatment decision, and the name and seal of the tax authority.

Article 44 The written tax administrative punishment decision shall include the following major contents:

(1) The name, valid identity certificate number or unified social credit code and address of the inspectee or any other tax-related party. In the absence of a unified social credit code, the taxpayer's identification number assigned by the tax authority shall be used.

(2) Inspection scope and contents.

(3) The tax-related illegal act and evidence and the period thereof.

(4) Type and basis of administrative punishment.

(5) The manner, time limit and place for execution of the administrative punishment.

(6) Liability that shall be borne by the party for the failure to perform the administrative punishment decision on time.

(7) Means of and time limit for applying for administrative reconsideration or filing an administrative lawsuit.

(8) The document number and preparation date of the written administrative punishment decision, and the name and seal of the tax authority.

The tax administrative punishment decision shall be publicized in accordance with the law. If a publicized administrative punishment decision is modified, revoked, or confirmed as illegal or invalid in accordance with the law, the information on the original administrative punishment decision shall be withdrawn and a public explanation on the reasons shall be made within three working days.

Article 45 A written decision of not imposing tax administrative punishments shall include the following major contents:

(1) The name, valid identity certificate number or unified social credit code and address of the inspectee or any other tax-related party. In the absence of a unified social credit code, the taxpayer's identification number assigned by the tax authority shall be used.

(2) Inspection scope and contents.

(3) The tax-related illegal act and the period thereof.

(4) Grounds and basis of not imposing tax administrative punishments.

(5) Means of and time limit for applying for administrative reconsideration or filing an administrative lawsuit.

(6) The document number and preparation date of the written decision of not imposing administrative punishments, and the name and seal of the tax authority.

Article 46 The tax auditing conclusion shall include the following major contents:

(1) The name, valid identity certificate number or unified social credit code and address of the inspectee. In the absence of a unified social credit code, the taxpayer's identification number assigned by the tax authority shall be used.

(2) Inspection scope and contents.

(3) Inspection time and inspection period.

(4) Inspection conclusion.

(5) The document number and preparation date of the conclusion, and the name and seal of the tax authority.

Article 47 The auditing bureau shall make an administrative treatment, punishment decision or conclusion on no tax-related illegal act within 90 days from the date of filing a case. If the case is complicated and an extension needs to be made, an extension of not more than 90 days may be made with the approval of the director of the taxation bureau; if an extension needs to be made due to special circumstances or force majeure, it shall be subject to the approval of the deputy director of the taxation bureau at the next higher level, and a reasonable extension shall be determined. The following time shall not be calculated in the time limit:

(1) Time of suspending inspection.

(2) Time required for requesting instructions of the superior authority or soliciting opinions of the competent authority.

(3) Time required for requesting the trial of a major tax-related case.

(4) Time required for serving upon documents by public announcement if the service cannot be made by other methods.

(5) Time required for organizing the hearing.

(6) Time required for the taxpayer and withholding agent to provide materials beyond the prescribed time limit.

(7) The time from when the judicial authority accepts the transferred case to the effective time of the judicial instrument on a case for which the tax authority needs to decide whether to impose a punishment after the case is transferred to the judicial authority.

Article 48 Where the tax-related illegal act is suspected of any crime, the document of transferring the case of suspected crime shall be prepared and transferred to the public security authority in accordance with the law with the approval of the director of the tax authority, and the following materials shall be attached:

(1) Report on the investigation of a case about a suspected crime.

(2) Duplicates of major evidentiary materials about the suspected crime.

(3) Other materials relating the suspected crime.

Chapter V Enforcement

Article 49 The auditing bureau shall, in accordance with the law, serve the written tax treatment decision, the written tax administrative punishment decision, the written decision of not imposing tax administrative punishments, the tax auditing conclusion, and other taxation documents in a timely manner.

Article 50 Under any of the following circumstances, the auditing bureau may conduct enforcement in accordance with the law or apply to the people's court for enforcement in accordance with the law with the approval of the director of the taxation bureau at or above the county level.

(1) The taxpayer or withholding agent fails to pay the taxes or withholding tax or overdue fine within the prescribed time limit, is ordered to pay but fails to do so within the prescribed time limit.

(2) The tax payment guarantor confirmed by the auditing bureau fails to pay the tax guarantee and overdue fine within the prescribed time limit, is ordered to pay but fails to do so within the prescribed time limit.

(3) The party neither applies for administrative reconsideration nor files a lawsuit against a punishment decision with a people's court, and fails to carry out the punishment decision within the prescribed time limit.

(4) Any other circumstance where enforcement may be conducted in accordance with the law.

Article 51 Where a party does have financial difficulty and needs to defer the payment of or pay in installments a fine, the payment of the fine may be deferred or made in installments if the party files an application with the auditing bureau and the application is approved by the director of the taxation bureau.

Article 52 Before an enforcement decision is made, a reminder document shall be prepared and served upon to remind the party to fulfill its duties, and solicit the statements and arguments of the party. If the party still fails to perform the administrative decision within the prescribed time limit without any justified reason after being reminded, enforcement may be conducted with the approval of the director of the taxation bureau at or above the county level.

When enforcement is conducted, the written enforcement decision shall be served upon the person subject to enforcement, informing him or her of the contents, grounds and basis of enforcement, and the right to apply for administrative reconsideration or file an administrative lawsuit in accordance with the law.

During the reminder period, if there is any evidence or any sign of transfer or concealment of properties, the public security authority may make an immediate enforcement decision.

Article 53 When the auditing bureau takes the measure of withholding taxes, overdue fine or fine from the opening bank of the person subject to enforcement or any other financial institution, it shall serve a notice of withholding taxes upon the opening bank or other financial institution, deduct the taxes, overdue fine or fine in accordance with the law, and serve relevant vouchers upon the person subject to enforcement in a timely manner.

Article 54 Where the commodities, goods or other properties of the person subject to enforcement are auctioned or sold off and the proceeds from such auction or sale are used to offset taxes, overdue fine or fine, such commodities, goods or other properties shall be placed under seal or impounded in accordance with the law before being auctioned or sold off.

Before auctioning or selling off the commodities, goods or other properties of the person subject to enforcement, the auditing bureau shall prepare a written decision on the auction or sale of properties to offset taxes, which shall be served upon the person subject to enforcement with the approval of the director of the taxation bureau at or above the county level for auction or sale.

After auction or sale, the formalities for the entry of taxes, overdue fine and fine into the treasury shall be undergone within three working days after settlement and receipt of payments, and a notice of auction or sale shall be made, to which a list of the auctioned or sold commodities, goods or other properties placed under seal or impounded shall be prepared and served upon the party subject to enforcement upon the examination of the director of the auditing bureau.

Where there is any surplus or any property that is unable to be auctioned or sold off after the proceeds from the auction or sale are used to offset taxes, overdue fine, fine, auction or sale expenses, among others, a notice of returning commodities, goods or other properties to which the list of returned commodities, goods or other properties is attached shall be prepared and served upon the person subject to enforcement, and returned to the person subject to enforcement within three working days after the formalities for the entry of taxes, overdue fine or fine into the treasury are undergone.

Article 55 Where any suspected crime is discovered during the implementation, it shall be handled in accordance with Article 48 of these Provisions.

Article 56 Where any of the following circumstances is found in the enforcement process, enforcement shall be suspended with the approval of the director of the auditing bureau.

(1) The person dies or declared dead in accordance with the law, and the enforceable property has not been confirmed.

(2) The person enters bankruptcy liquidation procedures, which has not been terminated.

(3) The enforceable property is placed under seal, impounded, or frozen by the judicial authority or any other state authority in accordance with the law, which makes enforcement impossible for the time being.

(4) The ownership of the enforceable subject matter needs to be determined by a people's court or an arbitral institution.

(5) Any other circumstance where enforcement may be suspended as provided for by any law, administrative regulation or the provisions of the STA.

After the circumstance requiring the suspension of enforcement disappears, enforcement shall be resumed with the approval of the director of the auditing bureau.

Article 57 Where the party does not have any property available for offsetting taxes, overdue fine, fine or is indeed unable to pay off the taxes, overdue fine, or fine according to bankruptcy liquidation procedures, or falls under any other statutory circumstance requiring the termination of enforcement, enforcement shall be terminated with the approval of the director of the taxation bureau.

Article 58 Under any of the following circumstances after the service of such decision documents as the written tax treatment decision and the written tax administrative punishment decision, the investigation bureau may re-make the decision in accordance with the law:

(1) The people's court rules to revoke the decision document.

(2) The administrative reconsideration authority decides to revoke the decision document.

(3) The tax authority deems it necessary to modify or revoke the original decision document.

(4) Any other circumstance requiring the modification or revocation of the original decision document in accordance with the law.

Chapter VI Supplemental Provisions

Article 59 The formats of relevant taxation documents set forth in these Provisions shall be provided for by the STA.

Article 60 For the purposes of these Provisions, “signature and seal” shall be determined according to the following circumstances:

(1) If it belongs to a legal person or any other organization, the relevant person shall affix his or her signature and affix the seal of the entity, with the date indicated.

(2) If it belongs to an individual, the individual shall affix his or her signature, with the date indicated.

For the purposes of these Provisions, “or more” and “within” includes the mentioned figure itself.

Article 61 These Provisions shall come into force on August 11, 2021, upon which the Work Procedures for Tax Auditing (No. 157 [2009], STA, amended by Announcement No. 31 [2018], STA) shall be repealed.