Provisions on the Case Handling Procedures for Tax Inspection
Provisions on the Case Handling Procedures for Tax Inspection
Provisions on the Case Handling Procedures for Tax Inspection
Order of the State Taxation Administration No.52
July 12, 2021
The Provisions on the Case Handling Procedures for Tax Inspection, which were adopted at the second executive meeting in 2021 of the State Taxation Administration on June 18, 2021, are hereby promulgated for implementation as of August 11, 2021.
Wang Jun, Commissioner of the State Taxation Administration
Provisions on the Case Handling Procedures for Tax Inspection
Chapter I General Provisions
Article 1 The Provisions on the Case Handling Procedures for Tax Inspection (hereinafter referred to as the "Provisions") are formulated in accordance with the Law of the People's Republic of China on the Administration of Tax Levying (hereinafter referred to as the "Law"), the Implementing Rules of the Law of the People's Republic of China on the Administration of Tax Levying (hereinafter referred to as the "Implementing Rules"), and other laws and administrative regulations to implement the Opinions on Further Deepening the Tax Collection Reform issued by the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council, ensure the implementation of tax laws and administrative regulations, standardize case handling procedures for tax inspection, strengthen supervision and restriction mechanisms, and protect the legitimate rights and interests of taxpayers, withholding agents, and other tax-related parties.
Article 2 The Provisions shall apply to the handling of tax inspection cases by inspection bureaus.
Article 3 The tax inspection cases shall be handled based on facts and in accordance with the law and the principles of fairness, justice, openness, and efficiency.
Article 4 Inspection bureaus conduct the tax inspection in accordance with the law and perform main duties including inspecting and handling the performance of the obligation to pay taxes and withholding obligation by taxpayers, withholding agents, and other tax-related parties and carrying out other work in relation to the inspection and handling in accordance with the law. The specific duties of inspection bureaus are determined by the State Taxation Administration pursuant to the Law, the Implementing Rules, and the relevant provisions of the State.
Article 5 When handling tax inspection cases, inspection bureaus shall follow the labor division and restriction principle for case selection, inspection, trial, and execution.
Article 6 Inspection bureaus shall conduct tax inspection within the scope announced by tax bureaus. Tax authorities at higher level may designate jurisdiction based on the case handling needs.
Where tax laws, administrative regulations, and rules of the State Taxation Administration contain other provisions on the jurisdiction over tax inspection, such provisions shall prevail.
Article 7 Any dispute over the jurisdiction over tax inspection shall be settled by the parties to the dispute through negotiation level by level in line with the principle of facilitating case handling; if the negotiation fails, the dispute shall be submitted to the common tax authority at higher level for decision.
Article 8 Tax inspectors shall withdraw from the tax inspection if they fall into any circumstance requiring the withdrawal as set forth in the Implementing Rules.
Where an object under inspection requires any tax inspector to withdraw, or a tax inspector puts forward the withdrawal himself or herself, the director of the relevant inspection bureau shall decide whether the withdrawal is required in accordance with the law. Upon discovery of the fact that a tax inspector falls under any prescribed circumstance requiring withdrawal, the director of the inspection bureau shall require him or her to withdraw from the relevant matters. The withdrawal of the director of the inspection bureau shall be subject to review and decision by the director of the tax bureau in accordance with the law.
Article 9 Tax inspectors shall lawfully keep confidential the state secrets, trade secrets, or personal privacy or personal information that they learn during the course of tax inspection.
Tax-related illegal acts committed by taxpayers, withholding agents, and other tax-related parties do not fall within the scope of confidentiality.
Article 10 Tax inspectors shall observe work discipline and abide by professional ethics, and shall not commit any of the following acts:
1. exercise their functions and powers in violation of legal procedures or beyond the scope of authority;
2. make use of their functions and powers to seek benefits for themselves or others;
3. neglect their duties and fail to perform statutory obligations;
4. divulge state secrets or work secrets and furnish the object under inspection with secret information or details of a case;
5. employ trickery or intentionally exaggerate or conceal the details of a case;
6. accept lavish dinners and gifts offered by the object under inspection or other acts that affect the fair execution of official duties; and
7. other acts in violation of laws and discipline.
Where tax inspectors abuse their powers, ignore their duties, or play favoritism and commit irregularities in enforcing the law and handling cases, they shall be subjected to severe punishments in accordance with the relevant provisions; where they are suspected of committing a crime, they shall be transferred to judicial organs for handling in accordance with the law.
Article 11 The tax inspection cases shall be handled in the form of text, audio and video, or otherwise. The entire process including the initiation, investigation and evidence collection, review, decision, service, and execution of a case shall be recorded.
Chapter II Case Selection
Article 12 Inspection bureaus shall strengthen the management of the source of inspection cases, comprehensively collect and sort out case source information, and reasonably and accurately select the objects to be inspected. Case source management shall be conducted in accordance with the relevant provisions of the State Taxation Administration.
Article 13 After the object to be inspected is determined, a case may be put on file for inspection with the approval of the director of the relevant inspection bureau.
When necessary, in accordance with laws and regulations, the inspection bureau may conduct inspection before filing the case.
Article 14 Inspection bureaus shall implement the inspection in a planned way and strictly control the number of tax inspections of taxpayers and withholding agents.
Chapter III Inspection
Article 15 Prior to the inspection, an inspection bureau shall inform the object under inspection of the inspection time, materials to be prepared, and so on, unless the advance notice may impede the inspection.
Two or more inspection personnel with law enforcement qualifications shall jointly conduct the inspection, and produce tax inspection certificates and produce or serve the Notice of Tax Inspection to or on the object under inspection, notifying the object under inspection of his or her rights and obligations.
Article 16 The inspection shall be carried out based on the statutory authority and procedures using methods such as on-site inspection, retrieval of account books and data, enquiry, inquiry of deposit accounts or savings deposits, and remote cooperative investigation.
The object under inspection who adopts the electronic information system for management and accounting may be required by inspection personnel to open the electronic information system, or provide copies consistent with original electronic data and technical materials about the electronic information system. If the above object refuses to do so, upon the approval by the director of the inspection bureau concerned, appropriate technical means may be adopted to directly inspect the electronic information system, or extract or copy electronic data for inspection, provided that the technical means adopted shall not destroy the original electronic data of the electronic information system or affect its normal operation.
Article 17 In conducting the inspection, evidentiary materials shall be collected according to statutory authority and procedures. The evidence collected shall be true upon verification and related to the facts proved.
No evidentiary materials may:
1. be collected in serious violation of statutory procedures;
2. be obtained through methods that violate the mandatory provisions of the law and infringe upon the legitimate rights and interests of others; or
3. be obtained through methods such as inducement, fraud, coercion, and violence.
Article 18 When account books, bookkeeping vouchers, statements, and other relevant materials are retrieved, the notice on retrieval of account books and materials shall be issued to the object under inspection, and the list of account books and materials retrieved shall be filled in and delivered to the said object for confirmation by signature after the 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, the approval of the director of the tax bureau at or above the county level is required, and the above materials shall be returned completely within three months; where account books, bookkeeping vouchers, statements, and other relevant materials of a taxpayer or withholding agent in the current year need to be retrieved, the approval of the director of the tax bureau at or above the level of city with districts or autonomous prefecture is required, and the above materials shall be returned within 30 days.
When the account books and materials are returned, the object under inspection shall check them against the list of account books and materials retrieved and confirm them by signature.
Article 19 If original copies of evidentiary materials need to be retrieved, special receipts for evidence retrieval shall be issued to the party concerned subject to confirmation by signature of the party concerned after the verification.
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Order of the State Taxation Administration No.52
July 12, 2021
The Provisions on the Case Handling Procedures for Tax Inspection, which were adopted at the second executive meeting in 2021 of the State Taxation Administration on June 18, 2021, are hereby promulgated for implementation as of August 11, 2021.
Wang Jun, Commissioner of the State Taxation Administration
Provisions on the Case Handling Procedures for Tax Inspection
Chapter I General Provisions
Article 1 The Provisions on the Case Handling Procedures for Tax Inspection (hereinafter referred to as the "Provisions") are formulated in accordance with the Law of the People's Republic of China on the Administration of Tax Levying (hereinafter referred to as the "Law"), the Implementing Rules of the Law of the People's Republic of China on the Administration of Tax Levying (hereinafter referred to as the "Implementing Rules"), and other laws and administrative regulations to implement the Opinions on Further Deepening the Tax Collection Reform issued by the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council, ensure the implementation of tax laws and administrative regulations, standardize case handling procedures for tax inspection, strengthen supervision and restriction mechanisms, and protect the legitimate rights and interests of taxpayers, withholding agents, and other tax-related parties.
Article 2 The Provisions shall apply to the handling of tax inspection cases by inspection bureaus.
Article 3 The tax inspection cases shall be handled based on facts and in accordance with the law and the principles of fairness, justice, openness, and efficiency.
Article 4 Inspection bureaus conduct the tax inspection in accordance with the law and perform main duties including inspecting and handling the performance of the obligation to pay taxes and withholding obligation by taxpayers, withholding agents, and other tax-related parties and carrying out other work in relation to the inspection and handling in accordance with the law. The specific duties of inspection bureaus are determined by the State Taxation Administration pursuant to the Law, the Implementing Rules, and the relevant provisions of the State.
Article 5 When handling tax inspection cases, inspection bureaus shall follow the labor division and restriction principle for case selection, inspection, trial, and execution.
Article 6 Inspection bureaus shall conduct tax inspection within the scope announced by tax bureaus. Tax authorities at higher level may designate jurisdiction based on the case handling needs.
Where tax laws, administrative regulations, and rules of the State Taxation Administration contain other provisions on the jurisdiction over tax inspection, such provisions shall prevail.
Article 7 Any dispute over the jurisdiction over tax inspection shall be settled by the parties to the dispute through negotiation level by level in line with the principle of facilitating case handling; if the negotiation fails, the dispute shall be submitted to the common tax authority at higher level for decision.
Article 8 Tax inspectors shall withdraw from the tax inspection if they fall into any circumstance requiring the withdrawal as set forth in the Implementing Rules.
Where an object under inspection requires any tax inspector to withdraw, or a tax inspector puts forward the withdrawal himself or herself, the director of the relevant inspection bureau shall decide whether the withdrawal is required in accordance with the law. Upon discovery of the fact that a tax inspector falls under any prescribed circumstance requiring withdrawal, the director of the inspection bureau shall require him or her to withdraw from the relevant matters. The withdrawal of the director of the inspection bureau shall be subject to review and decision by the director of the tax bureau in accordance with the law.
Article 9 Tax inspectors shall lawfully keep confidential the state secrets, trade secrets, or personal privacy or personal information that they learn during the course of tax inspection.
Tax-related illegal acts committed by taxpayers, withholding agents, and other tax-related parties do not fall within the scope of confidentiality.
Article 10 Tax inspectors shall observe work discipline and abide by professional ethics, and shall not commit any of the following acts:
1. exercise their functions and powers in violation of legal procedures or beyond the scope of authority;
2. make use of their functions and powers to seek benefits for themselves or others;
3. neglect their duties and fail to perform statutory obligations;
4. divulge state secrets or work secrets and furnish the object under inspection with secret information or details of a case;
5. employ trickery or intentionally exaggerate or conceal the details of a case;
6. accept lavish dinners and gifts offered by the object under inspection or other acts that affect the fair execution of official duties; and
7. other acts in violation of laws and discipline.
Where tax inspectors abuse their powers, ignore their duties, or play favoritism and commit irregularities in enforcing the law and handling cases, they shall be subjected to severe punishments in accordance with the relevant provisions; where they are suspected of committing a crime, they shall be transferred to judicial organs for handling in accordance with the law.
Article 11 The tax inspection cases shall be handled in the form of text, audio and video, or otherwise. The entire process including the initiation, investigation and evidence collection, review, decision, service, and execution of a case shall be recorded.
Chapter II Case Selection
Article 12 Inspection bureaus shall strengthen the management of the source of inspection cases, comprehensively collect and sort out case source information, and reasonably and accurately select the objects to be inspected. Case source management shall be conducted in accordance with the relevant provisions of the State Taxation Administration.
Article 13 After the object to be inspected is determined, a case may be put on file for inspection with the approval of the director of the relevant inspection bureau.
When necessary, in accordance with laws and regulations, the inspection bureau may conduct inspection before filing the case.
Article 14 Inspection bureaus shall implement the inspection in a planned way and strictly control the number of tax inspections of taxpayers and withholding agents.
Chapter III Inspection
Article 15 Prior to the inspection, an inspection bureau shall inform the object under inspection of the inspection time, materials to be prepared, and so on, unless the advance notice may impede the inspection.
Two or more inspection personnel with law enforcement qualifications shall jointly conduct the inspection, and produce tax inspection certificates and produce or serve the Notice of Tax Inspection to or on the object under inspection, notifying the object under inspection of his or her rights and obligations.
Article 16 The inspection shall be carried out based on the statutory authority and procedures using methods such as on-site inspection, retrieval of account books and data, enquiry, inquiry of deposit accounts or savings deposits, and remote cooperative investigation.
The object under inspection who adopts the electronic information system for management and accounting may be required by inspection personnel to open the electronic information system, or provide copies consistent with original electronic data and technical materials about the electronic information system. If the above object refuses to do so, upon the approval by the director of the inspection bureau concerned, appropriate technical means may be adopted to directly inspect the electronic information system, or extract or copy electronic data for inspection, provided that the technical means adopted shall not destroy the original electronic data of the electronic information system or affect its normal operation.
Article 17 In conducting the inspection, evidentiary materials shall be collected according to statutory authority and procedures. The evidence collected shall be true upon verification and related to the facts proved.
No evidentiary materials may:
1. be collected in serious violation of statutory procedures;
2. be obtained through methods that violate the mandatory provisions of the law and infringe upon the legitimate rights and interests of others; or
3. be obtained through methods such as inducement, fraud, coercion, and violence.
Article 18 When account books, bookkeeping vouchers, statements, and other relevant materials are retrieved, the notice on retrieval of account books and materials shall be issued to the object under inspection, and the list of account books and materials retrieved shall be filled in and delivered to the said object for confirmation by signature after the 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, the approval of the director of the tax bureau at or above the county level is required, and the above materials shall be returned completely within three months; where account books, bookkeeping vouchers, statements, and other relevant materials of a taxpayer or withholding agent in the current year need to be retrieved, the approval of the director of the tax bureau at or above the level of city with districts or autonomous prefecture is required, and the above materials shall be returned within 30 days.
When the account books and materials are returned, the object under inspection shall check them against the list of account books and materials retrieved and confirm them by signature.
Article 19 If original copies of evidentiary materials need to be retrieved, special receipts for evidence retrieval shall be issued to the party concerned subject to confirmation by signature of the party concerned after the verification.
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