•The law of the PEOPLE'S REPUBLIC OF CHINA CONCERNING THE ADMINISTRATION OF TAX COLLECTION (hereafter the "ATC law") has been revised recently. The new edition of the "ATC" law contains 94 articles, 50% more comparing with the former edition promulgated in 1992.
Most of brand new articles are concerned with detailed procedure requirements, i.e. according to Article 26, taxpayer or withholding agent may go to tax bureau to fulfill filing tax returns or submit reports of tax withheld. Alternatively they may do this by post, EDI or other approaches.
The new edition enhances the powers of tax authorities, now under the circumstances that a transferee learns that a taxpayer who has not paid tax is indolent in exercising its due creditor's right, renounces its due creditor's right or transfers its property gratis, transfers its property at an obviously unreasonable low price, thus damaging tax collection, tax authority may exercise subrogation and the right to request the people's court to revoke taxpayer's act in accordance with PRC's contract law. On the other hand these new articles aim to standardize activities of tax administrative authorities, i.e. Article 85 requires where a tax officer in charge or other officers taking direct responsibilities commit not withdrawing from collecting tax or dealing with a tax violation case, administrative sanction shall be imposed on them.
The scope of breaches and corresponding penalties are extended under the "ATC" law. Mirror the criminal law of PRC, a number of criminal liabilities shall be pursued against serious tax violation.
──Gary Gao