Opinions of the State Administration of Taxation on Further Enhancing the Administration of Major Illegal Tax Cases

Opinions of the State Administration of Taxation on Further Enhancing the Administration of Major Illegal Tax Cases

Guo Shui Fa [2007] No. 39

April 5, 2007

The Offices of the State Administration of Taxation and Local Taxation Bureaus at all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan,

In recent year, the tax authorities of all places have seriously implemented the requirement of the State Administration of Taxation on enhancing tax auditing and investigated a large number of illegal tax cases according to the law, as a result, the tax criminals are firmly beaten and frightened; the rectification and regulation of tax order has made satisfying achievements. However, currently there are also some problems existing in the investigation of major illegal tax cases; for instance, there is no uniform criteria for major criminal cases; the duty and responsibility of relevant tax authorities are unclear during the case investigation process, which influences the timing and effectiveness of case investigation; there is no specific time limit for case investigation, the cases are not timely investigated in some places and the case ending rate is low; and there is no necessary examination and evaluation system for case investigation. In order to further enhance the coordination, guidance, supervision and inspection of the investigation of major illegal tax cases, opinions on the administration of major illegal tax cases are hereby put forward as follows:

I. Formulating criteria for cases and implementing classification management
1. Major illegal tax cases shall refer to illegal tax cases of which the tax amount involved has reached certain criteria, or which seriously breach the laws or have major social influence. Major illegal tax cases shall be divided into the investigated cases to be organized and investigated cases to be supervised according the investigation methods. Investigated cases to be supervised by the tax authorities at upper level shall be organized by the tax authorities at lower level.
2. Investigated cases to be organized by the State Administration of Taxation shall include: cases examined and approved by the higher authorities and high-ranking leaders, e.g. the CPCC and the State Council, etc., and leaders of the State Administration of Taxation; cases involving tax dodging, avoidance of tax payment, tax fraud or tax evasion, with extraordinarily large tax amount and serious extent; cases involving issuance of false special VAT invoice or other invoices usable for fraud of export refund or tax deduction, with extraordinarily large billing amount and serious extent; cases involving several places and having major influence throughout the state; other cases the investigation of which, in the opinion of the State Administration of Taxation, needs to be organized.
3.
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