Measures on Publicizing Information of Serious Tax-Dishonest Entities

The "Measures for the Administration of Public Disclosure of Information on Major Tax Law Violation Dishonest Subjects" were reviewed and adopted at the 3rd bureau meeting of the State Administration of Taxation in 2021 held on December 27, 2021, and are hereby promulgated, effective from February 1, 2022.

Director of the State Administration of Taxation: Wang Jun

December 31, 2021

Measures for the Administration of Public Disclosure of Information on Major Tax Law Violation Dishonest Subjects

Chapter I General Provisions

Article 1 These Measures are formulated in accordance with the "Tax Collection and Administration Law of the People's Republic of China", the "Regulations on Optimizing the Business Environment" and other relevant laws and regulations, in order to implement the "Opinions on Further Deepening the Reform of Tax Collection and Administration" issued by the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council, to maintain normal tax collection and administration order, to punish major tax law violations and dishonest acts, to protect the legitimate rights and interests of tax administrative counterparts, to promote law‑abiding and honest tax payment, and to advance the construction of the social credit system.

Article 2 In accordance with these Measures, tax authorities shall determine major tax law violation dishonest subjects, publicly disclose dishonest information to the public, and transmit the information to relevant departments for the implementation of supervision and joint disciplinary actions.

Article 3 The administration of public disclosure of information on major tax law violation dishonest subjects shall follow the principles of law‑based administration, fairness and justice, uniformity and standardization, and prudence and appropriateness.

Article 4 Tax authorities at all levels shall protect the legitimate rights and interests of tax administrative counterparts in accordance with the law, and shall keep confidential state secrets, commercial secrets, personal privacy, or personal information learned in the course of administering the public disclosure of information on major tax law violation dishonest subjects.

Article 5 Tax authority staff members who abuse their power, neglect their duties, or engage in malpractices for personal gain in the administration of public disclosure of information on major tax law violation dishonest subjects shall be dealt with seriously in accordance with relevant regulations; if a crime is suspected, they shall be transferred to judicial authorities in accordance with the law.

Chapter II Determination of Dishonest Subjects

Article 6 For the purposes of these Measures, "major tax law violation dishonest subjects" (hereinafter referred to as "dishonest subjects") means taxpayers, withholding agents, or other tax‑related parties (hereinafter referred to as "parties") that fall under any of the following circumstances:

(1) Forging, altering, concealing, or unlawfully destroying account books or accounting vouchers, or overstating expenditures or understating or omitting income in account books, or refusing to file tax returns despite notification by tax authorities, or filing false tax returns, resulting in non‑payment or underpayment of tax payable of RMB 1 million or more, and in any tax year, the non‑paid or underpaid tax payable accounts for 10% or more of the total tax payable for that year; or using the above means to fail to pay or underpay tax already withheld or collected, with the amount being RMB 1 million or more;

(2) Arrears of tax payable, using means of transferring or concealing property to impede the tax authorities from recovering the arrears, with the amount of tax arrears being RMB 1 million or more;

(3) Fraudulently obtaining state export tax refunds;

(4) Refusing to pay tax by means of violence or threats;

(5) Falsely issuing special VAT invoices or other invoices for the purpose of fraudulently obtaining export tax refunds or offsetting tax;

(6) Falsely issuing 100 or more ordinary VAT invoices, or with a total amount of RMB 4 million or more;

(7) Privately printing, forging, or altering invoices, illegally manufacturing special anti‑counterfeiting products for invoices, or forging invoice supervision seals;

(8) Having committed acts of tax evasion, avoidance of recovery of tax arrears, fraudulently obtaining export tax refunds, resisting tax payment, or falsely issuing invoices, and, before the completion of the enforcement of the case, failing to perform tax obligations and escaping from tax authority supervision, and being confirmed by tax authorities as having absconded (lost contact) after inspection;

(9) Illegally providing bank accounts, invoices, certificates, or other conveniences to taxpayers or withholding agents, resulting in non‑payment or underpayment of tax of RMB 1 million or more, or fraudulently obtaining state export tax refunds;

(10) Tax agents, in violation of tax laws and administrative regulations, causing taxpayers to fail to pay or underpay tax of RMB 1 million or more;

(11) Other tax law violations of a particularly egregious nature, serious circumstances, or major social harm.

Article 7 If the tax authority has made a "Decision on Tax Administrative Penalty" against the party in accordance with the law, and the party does not apply for administrative reconsideration or initiate administrative litigation within the statutory time limit, or, after applying for administrative reconsideration, does not initiate administrative litigation within the statutory time limit after the reconsideration authority makes a decision, or after the people's court makes an effective judgment or ruling on the tax administrative penalty decision or reconsideration decision, and if any of the circumstances in Article 6 of these Measures exist, the tax authority shall determine the party as a dishonest subject.

For parties transferred to the public security authorities, if the tax authority has already made a "Decision on Tax Treatment" at the time of transfer but has not made a "Decision on Tax Administrative Penalty", and the party does not apply for administrative reconsideration or initiate administrative litigation within the statutory time limit, or, after applying for administrative reconsideration, does not initiate administrative litigation within the statutory time limit after the reconsideration authority makes a decision, or after the people's court makes an effective judgment or ruling on the tax treatment decision or reconsideration decision, and if any of the circumstances in Article 6 of these Measures exist, the tax authority shall determine the party as a dishonest subject.

Article 8 Before making a decision to determine a dishonest subject, the tax authority shall serve a notice document to the party, informing them of their right to make statements and arguments. The notice document shall include the following:

(1) The name or title of the party, the number of their valid identity document or the unified social credit code, and address. If there is no unified social credit code, the taxpayer identification number assigned by the tax authority shall be used instead;

(2) The reasons and basis for the proposed determination as a dishonest subject;

(3) The dishonest information to be publicly disclosed;

(4) A notice of the intention to notify relevant departments to take dishonest disciplinary measures;

(5) The relevant rights enjoyed by the party under the law;

(6) Other relevant matters.

For parties covered by the tax credit rating system, they shall also be informed of the proposed application of D‑level taxpayer management measures.

Article 9 Within 5 days after the tax authority's notice, the party may submit written or oral statements and arguments. If the party makes oral statements and arguments, the tax authority shall make a record of the statements and arguments, which shall be signed or sealed by the party.

The tax authority shall fully listen to the party's statements and arguments, and review the facts, reasons, and evidence presented by the party. If the facts, reasons, or evidence presented by the party are established, they shall be accepted.

Article 10 After approval by the head of the tax bureau at or above the city with districts or autonomous prefecture level, or by an authorized leader of the tax bureau, the tax authority shall, within 30 days after the expiry of the time limit for applying for administrative reconsideration or initiating administrative litigation as provided in Article 7 of these Measures, or after the reconsideration decision or the people's court judgment or ruling becomes effective, prepare a document determining the dishonest subject and serve it on the party in accordance with the law. The document determining the dishonest subject shall include the following:

(1) The name or title of the party, the number of their valid identity document or the unified social credit code, and address. If there is no unified social credit code, the taxpayer identification number assigned by the tax authority shall be used instead;

(2) The reasons and basis for determining the party as a dishonest subject;

(3) A notice of the dishonest information to be publicly disclosed;

(4) A notice that relevant departments will take dishonest disciplinary measures;

(5) The relevant rights enjoyed by the party under the law;

(6) Other relevant matters.

For parties covered by the tax credit rating system, it shall also include a notice of the application of D‑level taxpayer management measures.

The time limit in the first paragraph of this article does not include the time for service by public announcement of the notice document and the determination document when service cannot be effected by other means.

Chapter III Public Disclosure of Information

Article 11 The tax authority shall, within 15 days of the month following the service of the document determining the dishonest subject, publicly disclose the following information:

(1) Basic information of the dishonest subject;

(2) The main tax law violation facts of the dishonest subject;

(3) The tax treatment, tax administrative penalty decisions, and legal basis;

(4) The tax authority that determined the dishonest subject;

(5) Other information that should be publicly disclosed in accordance with laws and administrative regulations.

Information that is classified as state secrets in accordance with the law, information prohibited from disclosure by laws and administrative regulations, and information that, if disclosed, may endanger national security, public security, economic security, or social stability, shall not be publicly disclosed by tax authorities.

Article 12 The tax authority shall publicly disclose the basic information of the dishonest subject in accordance with Article 11, paragraph 1, item 1 of these Measures. If the dishonest subject is a legal person or other organization, it shall disclose its name, unified social credit code (taxpayer identification number), registered address, and the name, gender, and identity document number (with the birth year, month, and day segment redacted) of the legal representative or person in charge at the time of the violation, or the actual responsible person as determined by an effective judgment of the people's court. If the dishonest subject is a natural person, it shall disclose their name, gender, and identity document number (with the birth year, month, and day segment redacted).

If the actual responsible person determined by an effective judgment of the people's court is different from the legal representative or person in charge at the time of the violation, unless there is evidence that the legal representative or person in charge was involved in the case, the tax authority shall only publicly disclose the information of the actual responsible person.

Article 13 Tax authorities shall publicly disclose dishonest subject information through the websites of the State Administration of Taxation of each province, autonomous region, municipality directly under the central government, and city specifically designated in the state plan. Depending on the local situation, they may also make public disclosures through tax authority bulletin boards, newspapers, radio, television, online media, and press conferences.

The State Administration of Taxation shall collect the information on dishonest subjects determined by local tax authorities and provide it to the "Credit China" website for public disclosure.

Article 14 For dishonest subjects falling under the circumstances in Article 6, items 1 and 2 of these Measures, if they pay the tax, late fees, and fines in full in accordance with the "Decision on Tax Treatment" and the "Decision on Tax Administrative Penalty" before the public disclosure of the dishonest information, and upon confirmation by the tax authority, their relevant information shall not be publicly disclosed.

For dishonest subjects falling under the circumstances in Article 6, item 8 of these Measures, if they have committed tax evasion or avoidance of recovery of tax arrears, the preceding paragraph shall apply.

Article 15 For dishonest subjects determined in accordance with these Measures, if they are within the scope of tax credit rating, their tax credit rating shall be rated as D under tax credit management rules, and the corresponding D‑level taxpayer management measures shall apply.

Article 16 For dishonest subjects whose information is publicly disclosed in accordance with Article 11, paragraph 1 of these Measures, tax authorities shall provide the dishonest information to relevant departments, which shall take dishonest disciplinary measures in accordance with laws and regulations.

Article 17 When the dishonest subject information has been publicly disclosed for 3 years, the tax authority shall cease its public disclosure within 5 days.

Chapter IV Early Cessation of Public Disclosure

Article 18 During the period of public disclosure, if any of the following conditions are met, the dishonest subject or its bankruptcy administrator may apply to the tax authority that made the determination for early cessation of public disclosure of the dishonest information:

(1) Having paid (or refunded) the tax, late fees, and fines in full in accordance with the "Decision on Tax Treatment" and the "Decision on Tax Administrative Penalty", and the dishonest subject's information has been publicly disclosed for at least six months;

(2) The dishonest subject has gone bankrupt, and the people's court has issued a ruling approving the reorganization plan or recognizing the settlement agreement, and the tax authority has been repaid in accordance with the law;

(3) During emergencies such as major natural disasters, public health incidents, or social security events, having made outstanding contributions through participation in emergency rescue and disaster relief, epidemic prevention and control, major project construction, or fulfillment of social responsibilities.

Article 19 For applications for early cessation under Article 18, item 1 of these Measures, the applicant shall submit an application form for cessation of public disclosure of dishonest information and a letter of commitment to honest tax payment.

For applications for early cessation under Article 18, item 2 of these Measures, the applicant shall submit an application form for cessation of public disclosure of dishonest information and the ruling of the people's court approving the reorganization plan or recognizing the settlement agreement.

For applications for early cessation under Article 18, item 3 of these Measures, the applicant shall submit an application form for cessation of public disclosure of dishonest information, a letter of commitment to honest tax payment, and relevant materials issued by the people's government of the province, autonomous region, municipality directly under the central government, or city specifically designated in the state plan.

Article 20 The tax authority shall make a decision on whether to accept the application within 2 days from receipt of the application. If the application materials are complete and meet the statutory requirements, it shall accept the application and inform the applicant. If it is not accepted, it shall inform the applicant and state the reasons.

Article 21 After accepting the application, the tax authority shall review it in a timely manner. If the conditions in Article 18, item 1 of these Measures are met, upon approval by the head of the tax bureau at or above the city with districts or autonomous prefecture level, or by an authorized leader of the tax bureau, early cessation of public disclosure shall be granted. If the conditions in Article 18, items 2 or 3 are met, upon approval by the head of the tax bureau of the province, autonomous region, municipality directly under the central government, or city specifically designated in the state plan, or by an authorized leader of the tax bureau, early cessation of public disclosure shall be granted.

The tax authority shall make a decision on whether to grant early cessation of public disclosure within 15 days from the date of acceptance, and inform the applicant. If early cessation is not granted, the reasons shall be stated.

Article 22 Early cessation of public disclosure shall not be granted under any of the following circumstances:

(1) After being determined as a dishonest subject, the subject has been subject to tax treatment or administrative penalties for tax law violations such as tax evasion, avoidance of recovery of tax arrears, fraudulently obtaining export tax refunds, resisting tax payment, or falsely issuing invoices;

(2) Having been determined as a dishonest subject two or more times within five years.

If the applicant applies for early cessation under Article 18, item 2 of these Measures, the provisions of the preceding paragraph shall not apply.

Article 23 If the tax authority makes a decision to grant early cessation of public disclosure, it shall cease public disclosure within 5 days.

Article 24 Tax authorities may organize the legal representatives, financial persons in charge, etc., of dishonest subjects that have applied for early cessation of public disclosure to participate in credit training and carry out education on law‑abiding and honest tax payment. No fees shall be charged for credit training.

Chapter V Supplementary Provisions

Article 25 Where the time periods provided in these Measures are calculated in days, they refer to working days, excluding statutory holidays. Where the time periods are calculated in years or months, the corresponding day of the month of expiry shall be the last day of the period; if there is no corresponding day, the last day of the month shall be the last day of the period. The day on which the time period begins shall not be counted in the period.

In these Measures, "above" and "within" include the specified number (or level).

Article 26 The tax authorities of each province, autonomous region, municipality directly under the central government, and city specifically designated in the state plan may formulate specific implementation measures in accordance with these Measures.

Article 27 These Measures shall take effect on February 1, 2022. The "Announcement of the State Administration of Taxation on Issuing the Measures for Public Disclosure of Information on Major Tax Law Violation Cases" (2018 No. 54) shall be repealed simultaneously.

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