Laws of the People's Republic of China

State Administration of Taxation

Order of the State Administration of Taxation

No.9

The Measures for Announcement of Outstanding Taxes (For Trial Implementation), which were deliberated and adopted at the 3rd executive meeting of the Administration on August 18th, 2004, are hereby promulgated, and shall be implemented as of January 1st, 2005.

Xie Xuren, Director General of the State Administration of Taxation

October 10th, 2004

Measures for Announcement of Outstanding Taxes (For Trial Implementation)

Article 1

With a view to standardizing the acts of tax authorities for their announcement of outstanding taxes, urging taxpayers to pay outstanding taxes on their own initiatives, preventing the occurrence of new outstanding taxes, and ensuring the state tax money to be turned in the treasury in time and in full amount, the present Measures are formulated in accordance with the provisions of the Law of the People's Republic of China concerning the Administration of Tax Collection (hereinafter referred to as the "Tax Collection Administration Law") and its detailed implementation rules.

Article 2

The "announcement organs" as mentioned in the present Measures shall refer to the tax bureaus at the county level or above.

Article 3

The "outstanding taxes" as mentioned in the present Measures shall refer to the tax money failing to be paid by any taxpayer exceeding the time limit as stipulated by tax laws and administrative regulations or exceeding the time limit for tax payment (hereinafter referred to as the time limit for tax payment) as determined by the tax authorities pursuant to tax laws and administrative regulations, covering:

1.

Tax money that fails to be paid by a taxpayer within the time limit for tax payment after handling declaration for tax payment;

2.

Tax money that fails to be paid by a taxpayer within the time limit for tax payment after the expiry of the time limit for extension of tax payment upon approval;

3.

Tax money failing to be paid by a taxpayer within the time limit for payment of taxes that shall be made up by the taxpayer as determined through taxation inspection;

4.

Tax money failing to be paid by a taxpayer within the time limit for tax payable as checked and ratified by the tax authority according to Article 27 or 35 of the Tax Collection Administration Law; and

5.

Other tax money failing to be paid by a taxpayer within the time limit for tax payment.

The tax authorities shall verify the amount of outstanding taxes as stipulated in the preceding paragraph in time.

The outstanding taxes announced in the present Measures shall not cover late fees and fines.

Article 4

The announcement organ shall announce the outstanding taxes of any taxpayer at the tax handling places or in such mass media as radio, television, newspapers, periodicals, and networks, etc.on schedule.

1.

Where any enterprise or entity owes taxes, the announcement shall be made once every quarter;

2.

Where any individual business or any other individual owes taxes, the announcement shall be made once half a year; and

3.

The announcement shall be made at any time, in case any taxpaying household who escapes or disappears or other outstanding taxes of abnormal households whose whereabouts cannot be found out by the tax authorities.

Article 5

The contents of the announcement of outstanding taxes shall be as follows:

1.

Where any enterprise or entity owes taxes, the announcement shall cover the name of the enterprise or entity, the identification number of the taxpayer, name of the legal representative or responsible person, number of identity certificate of a citizen or other valid identity certificates, business place, categories of outstanding taxes, balance of outstanding taxes and the amount of outstanding taxes newly arising in the current term;

2.

Where any individual business owes taxes, the announcement shall cover: the name of the individual business, name of the owner, identification number of the taxpayer, number of the identity card of a citizen or other valid identity certificate, business place, type of outstanding taxes, balance of outstanding taxes and the amount of outstanding taxes newly arising in the current term; and

3.

Where an individual (excluding individual business) owes taxes, the announcement shall cover: his name, number of identity card of a citizen or other valid identity certificates, types of outstanding taxes, balance of outstanding taxes, and the amount of outstanding taxes newly arising in the current term.

Article 6

Where any taxpayer of an enterprise or entity owes tax money less than RMB 2 million Yuan (not included), or any individual business or individual owes tax money less than RMB 100,000 Yuan (not included), they shall be announced by the tax bureaus or sub-bureaus at the county level at the tax handling service hall.

Where any taxpayer of an enterprise or entity owes tax money of RMB 2 million Yuan (included) or more, or any individual business and other individual owes tax money RMB 100 thousand Yuan (included) or more, they shall be announced by the tax bureaus or sub-bureaus at the prefecture or municipal level.

Where any taxpaying household and other taxpayer whose whereabouts cannot be found out by the tax authorities owes taxes, they shall be announced by the state taxation bureaus or local taxation bureaus of all the provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning.

Article 7

With respect to the outstanding taxes information of any taxpayer that needs to be announced by the upper level announcement organ in line with the present Measures, the lower level announcement organ shall report it to the upper level organ in time.The specific time and requirements shall be determined by the tax bureaus of the provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning.

Article 8

Before making an announcement on outstanding taxes, an announcement organ shall make confirmation on the outstanding taxes conditions of any taxpayer deeply and in detail, lay emphasis on the verification of the outstanding taxes statistical listing data and the data recorded in the ledger of different accounts of the taxpayer, written data recorded in book accounts and electronic data recorded in the information system one by one, so as to ensure the truthfulness and accuracy of the data announced.

Article 9

Once outstanding taxes has been determined, the announcement organ shall sign and issue announcement by ways of formal documentation to announce to the society.

The method of combining the balance of outstanding taxes with the newly increased outstanding taxes shall be implemented for the amount of outstanding taxes in the announcement, and the tax authority may not make announcement on the following outstanding taxes of a taxpayer:

1.

Outstanding taxes of a taxpayer who has been adjudicated bankruptcy, and been revoked qualification of a legal person after legal liquidation;

2.

Outstanding taxes of an enterprise, which has been ordered to revoke or close down and has been deregistered or disqualified as a legal person according to law after legal liquidation;

3.

Outstanding taxes of an enterprise, which has consecutively stopped production and business operation for more than one year (computed on the basis of the date of the calendar); and

4.

Outstanding taxes of a taxpayer who has disappeared for more than two years.

The decision on announcement shall be listed as archives of materials of taxation collection administration, and shall be kept properly.

Article 10

An announcement organ shall not exceed the scope as stipulated in the present Measures when announcing the outstanding taxes of any taxpayer, and shall keep secrets for the pertinent conditions of any taxpayer pursuant to the Tax Collection Administration Law and its detailed implementation rules.

Article 11

After occurrence of any outstanding taxes, a tax authority shall, in addition to making announcement according to the present Measures, urge the payment of tax according to law and strictly compute and collect additional late fees by day, or even take taxation preservation or taxation mandatory enforcement measures to clear the outstanding taxes.No entity or individual may, in the form of announcement of outstanding taxes, substitute the taxation preservation or taxation mandatory enforcement measures and the implementation of other legal measures to disturb the clearance of outstanding taxes.The announcement organs at all levels shall designate a department to take charge of the work of announcement on outstanding taxes and clarify the relevant liabilities of the other relevant functional departments to strengthen administration on outstanding taxes.

Article 12

Where any announcement organ fails to make public notice it shall make or fails to report to the upper level organ that it shall report to, which results in damages to the tax money of the state, the tax authority of the upper level shall, in addition to ordering it to set right, give punishment on the personnel directly liable in accordance with the provisions of the Interim Regulation on National Public Servants and the Notice of the Ministry of Personnel on Relevant Issues concerning the Disciplinary Punishment on National Public Servants.

Article 13

The provisions of the present Measures shall be abided by for making announcement on outstanding taxes of withholders and tax paying guarantor.

Article 14

The tax bureaus of all the provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning may formulate specific implementation rules according to the present Measures.

Article 15

The power to interpret the present Measures shall remain with the State Administration of Taxation.

Article 16

The present Measures shall be implemented as of January 1st, 2005.