Laws of the People's Republic of China

    With a view to imposing punishment in respect of offences of tax evasion
and refusal to pay tax, the following supplementary provisions are made to the
Criminal Law:

    1. "Tax evasion" means that a taxpayer fails to pay, or underpays the
amount of tax payable by means forging, altering, concealing, or destroying
accounting books or vouchers for the accounts without authorization, or
overstating expenses, or omitting or understating incomes in accounting books,
or filing false tax declaration. Where the amount of tax evaded accounts for
more than ten percent of the amount of tax payable and where the amount in
question is over 10,000 yuan, or where the taxpayer commits tax evasion again
after having been twice subjected to administrative sanctions by the tax
authorities for tax evasion, the taxpayer shall be subject to fixed-term
imprisonment of not more than three years or criminal detention as well as a
fine of not more than five times the amount of tax evaded. Where the amount of
tax evaded accounts for more than thirty percent of the amount of tax payable
and where the amount in question is over 100,000 yuan, the taxpayer shall be
subject to fixed-term imprisonment of not less than three years but not more
than seven years as well as a fine of not more than five times the amount of
tax evaded.

    Where a withholding agent by means specified in the preceding paragraph
fails to pay, or underpays the tax which has been withheld or collected and
where the amount in question accounts for more than ten percent of the amount
of tax payable and is over 10,000 yuan, the withholding agent shall be
punished in accordance with the provisions of the preceding paragraph.

    Whoever has repeatedly committed any offence specified in the preceding
two paragraphs without having been subjected to punishment shall be punished
on the basis of the accumulated amount.

    2. Where a taxpayer that has not paid the tax due adopts the means of
transferring or concealing its property, thus resulting in the tax
authorities' inability to pursue the payment of tax in arrears, and where the
amount in question is more than 10,000 yuan but less than 100,000 yuan, the
taxpayer shall be subject to fixed-term imprisonment of not more than
three years or criminal detention as well as a fine of not more than five
times the amount of tax in arrears. Where the amount in question is over
100,000 yuan, the taxpayer shall be subject to fixed-term imprisonment of
not less than three years but not more than seven years as well as a fine of
not more than five times the amount of tax in arrears.

    3. Where an enterprise or institution commits any offence specified
herein in Article 1 or Article 2, the enterprise or institution shall be fined
in accordance with the provisions herein of Article 1 or Article 2, and the
persons in charge and other persons directly responsible shall be subject to
fixed-term imprisonment of not more than three years or criminal detention.

    4. Where a taxpayer fails to pay, or underpays the amount of tax payable
by virtue of bribing tax officials, the taxpayer shall be investigated for
criminal responsibilities based on the crime of bribery, and shall also be
subject to a fine of not more than five times the amount of tax which has
not been paid or has been underpaid.

    5. Where an enterprise or institution has fraudulently obtained from the
State a tax refund for exports by deceptive means such as filing false export
declaration with regard to the commodities it produces or operates, and where
the amount of the tax refund in question is over 10,000 yuan, the enterprise
or institution shall be subject to a fine of not more than five times the
amount of the tax refund which has been fraudulently obtained, and the
persons in charge and other persons directly responsible shall be subject to
fixed-term imprisonment of not more than three years or criminal detention.

    Where a unit other than those specified in the preceding paragraph or an
individual has fraudulently obtained from the State a tax refund for exports,
the unit or individual shall be investigated for criminal responsibilities
based on the crime of fraud, and shall also be subject to a fine of not more
than five times the amount of the tax refund which has been fraudulently
obtained. Where a unit commits any offence specified in this paragraph,
a fine shall be imposed on the unit and, in addition, the persons in charge
and other persons held directly responsible shall be investigated for
criminal responsibilities based on the crime of fraud.

    6. "Refusal to pay tax" means the refusal to pay tax with resort to
violence or menace. Whoever has thus refused to pay tax shall be subject to
fixed-term imprisonment of not more than three years or criminal detention
as well as a fine of not more than five times the amount of tax he has
refused to pay. If the circumstances are serious, the offender shall be
subject to fixed-term imprisonment of not less than three years but not more
than seven years as well as a fine of not more than five times the amount of
tax he has refused to pay.

    Whoever has refused to pay tax with resort to violence and has caused
serious bodily injury to or death of another person shall be subjected to a
heavier punishment based on the crime of inflicting bodily injury or
committing homicide, and shall also be imposed a fine in accordance with the
provisions of the preceding paragraph.

    7. Where an offence specified herein is committed, the tax authorities
shall pursue the payment of the amount of tax which has not been paid, or
has been underpaid, or is in arrears, or has been refused to pay, or has been
fraudulently obtained. Where the offender is exonerated from criminal
punishment according to law, the tax authorities shall, in addition to
pursuing the payment of the amount of tax which has not been paid, or has
been underpaid, or is in arrears, or has been refused to pay, or has been
fraudulently obtained, impose on him a fine of not more than five times the
amount of tax which has not been paid, or has been underpaid, or is in
arrears, or has been refused to pay, or has been fraudulently obtained.

    8. These Provisions shall come into force as of January 1, 1993.