The State Administration of Taxation (SAT) recently issued the Announcement on Revising the Measures for Publishing Tax Non-compliance Cases (for trial implementation) (Bulletin 24), which took effect on 1 June 2016.
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CASES TO BE PUBLISHED
Unified national standards. Bulletin 24 has unified the previous SAT and provincial-level tax bureau non-compliance case publishing standards. These new standards require the following cases to be published:
- Tax evasion cases where the unpaid or underpaid tax equals RMB1 million (US$149,000) or more and accounts for at least 10% of the total tax payable in the corresponding year;
- Tax arrears cases with unpaid or underpaid tax of RMB1 million or more, where the taxpayer transfers or hides assets to hinder the tax bureau’s tax collection;
- Cases where a person conducts export tax refund fraud;
- Cases where the taxpayer refuses to pay tax, adopting violence or threating behaviour;
- Cases where a person falsely issues a VAT special invoice or other invoices that can be used to obtain export tax refunds or tax credits;
- Cases where a person falsely issues 100 or more general invoices, or falsely issues general invoices with a total value of RMB400,000 or more;
- Cases where a person prints invoices without authorization, counterfeits or alters invoices, illegally manufactures products specifically used for anti-invoice counterfeiting, or counterfeits the seal used for supervising invoice manufacturing; and
- Cases with other serious breaches of law that have a relatively large social influence.
INFORMATION CONNECTED
Consolidated and linked publishing platforms. Previously, each local tax authority published tax non-compliance cases on its own official website.
Under Bulletin 24, these local cases now must be published on the provincial-level tax authority’s official website. The SAT’s official website will link to the provincial-level case reporting websites.
SETTLED BUT ON RECORD
Publishing exemption and permanent recording. Bulletin 24 exempts tax evasion and tax arrears cases from being published if the taxpayer settles all unpaid or underpaid taxes, late payment surcharges and penalties. However, the cases will still be recorded in an information system for serious tax non-compliance cases. Once recorded, the records of these serious tax non-compliance cases are maintained permanently.
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Business Law Digest is compiled with the assistance of Baker & McKenzie. Readers should not act on this information without seeking professional legal advice. You can contact Baker & McKenzie by e-mailing Danian Zhang (Shanghai) at: danian.zhang@bakermckenzie.com
