I. Hearings on Tax-Related Administrative Penalties
Applications for hearings shall meet the following conditions:
A. Citizens have objections to administrative penalties imposed by tax authorities, involving penal sums exceeding (including) 2,000 RMB;
B. Legal persons or other organizations have objections to administrative penalties imposed by tax authorities, involving penal sums exceeding (including) 10,000 RMB;
Parties requesting a hearing shall apply in writing to tax authorities for a hearing within 3 days after the date of service of the Notice of Tax-Related Administrative Penalties; failure to apply within the time limit shall be deemed as waiver of the right to a hearing.
(I). Parties shall submit in writing an application for a hearing; a verbal application may also be made and shall be recorded in writing by tax authorities, if the submission of a written application is proved to be difficult;
(II). The tax authorities shall examine and verify the applications submitted by the applicants for the hearing before deciding whether or not to accept the application; if an agent is authorized by the applicant to attend the hearing, the relevant authorization procedures shall be examined, verified and confirmed;
(III). After accepting the hearing application, the tax authorities shall decide on the time, place and mode of the hearing and the presiding official of the hearing.
(IV). Tax authorities shall serve on the applicant a Notice of Hearing on Tax-Related Administrative Penalties 7 days before the hearing is held and shall hold the hearing as scheduled.
The tax authorities shall hold a hearing within 15 days after receiving the hearing application from the parties concerned, provided they meet the conditions for hearings.
Upon completion of the hearing, the presiding official shall report on the hearing and its recommendations to responsible officials of the tax authorities, who shall decide whether or not to change the original penalty decision on the basis of the findings of the hearing.
II. Administrative Review on Taxation
(I). Applications for administrative reviews shall meet the following conditions:
A. The applicant shall be a citizen, legal person or other organization who believes that a specific administrative act has directly violated their lawful rights and interests;
B. There is a definite respondent;
C. There are specific requests for reviews and factual basis;
D. Within the scope of review applications;
E. Within the jurisdiction of the authorities accepting the review application ;
F. The review application is submitted within the statutory time limit for review applications;
G. Other conditions prescribed by laws and statutes.
(II). Scope of administrative reviews to be accepted by tax authorities:
A. Tax collection acts by tax authorities:
1. The collection of taxes and additional fees for delayed payment;
2. Tax withholding, collection and payment acts by tax withholding agents and collection units authorized by tax authorities;
B. Orders issued by tax authorities for tax payers to provide guarantees for tax payment.
C. Tax preservation measures taken by tax authorities:
1. Written advice to banks or other financial institutions to suspend payment of deposits;
2. To seize or impound commodities, goods or other properties.
D. Tax authorities fail to discontinue their tax preservation measures in time, resulting in losses of lawful rights and interests for the tax payers.
E. Enforcement measures on taxation taken by tax authorities:
1. Written notices to banks or other financial institutions to deduct tax payments from their deposits;
2. To auction the seized or impounded commodities, goods or other properties.
F. Tax-related administrative penalties imposed by tax authorities:
1. Penalties;
2. Confiscation of illegal proceeds;
3. Suspension of the right to export tax rebate.
G. In accordance with law, tax authorities shall not deal with or respond to the following acts:
1. Refusal to examine and approve tax reduction or exemption or export tax refunding;
2. Refusal to offset taxes;
3. Refusal to refund taxes;
4. Refusal to issue tax registration certificates or sell invoices;
5. Refusal to issue tax-paid certificates and give receipts;
6. Refusal to recognize as general VAT payers;
7. Refusal to approve postponement of declaration or postponement of tax payment.
H. Acts by tax authorities to disqualify as general VAT payers.
I. Acts by tax authorities to notify border control authorities to prevent from going abroad.
J. Other specific tax-related administrative acts by tax authorities.
(III). Time limit for applications for administrative reviews on taxation
Applicants may submit applications for administrative reviews on taxation within 60 days from the date of learning of the specific administrative acts by tax authorities. If the statutory time limit for applications is exceeded because of force majeure events or other just reasons, including the establishment of obstacles by the respondent, the time limit for applications may continue to be calculated from the date of the elimination of the obstacles.
(IV). The contents to be specified in the review applications
A. The name, address, telephone number and postal code of the applicant (the name and address of the legal person or other organizations and the name, telephone number and postal code of their legal representatives).
B. The names, addresses, telephone number and postal codes of the agent authorized by the applicant for reviews (with the power of agent from the principal attached, specifying the scope of authorization).
C. The name and address of the respondent, as well as the name of the leading official of the respondent.
D. The specific administrative acts by the respondent.
E. The request for administrative reviews on taxation and major facts and reasons for review applications.
F. The date of submission of the review application.
G. The signature or seal of the applicant.
(V). In case of a dispute between the tax payer, the tax withholding agent and tax payment guarantor on the one hand and the tax authorities on the other over taxation, payment of taxes and fees for late payment shall first be made or delivered or appropriate guarantees provided in accordance with the tax payment decision of the tax authorities.
Upon receiving the application for administrative review, the review organs shall examine it within 5 days. If the application for administrative review does not meet the requirements, a decision shall be made not to accept it and the applicant shall be notified thereof in writing.
If the application for administrative review meets the requirements, the processing shall start on the date of its receipt by the legal work mechanisms of the review organs. The applicant shall be notified in writing of the acceptance of his application for administrative reviews.
If the application for administrative reviews meets the requirements, but does not fall within the competence of the present organ, the applicant shall be advised to apply to relevant administrative review organs.
Review organs shall make a decision on administrative reviews within 60 days from the date of accepting the application. If, because of the complicated situation, it is impossible to make an administrative review decision within the specified time limit, the time may be extended appropriately, subject to the approval of the responsible official of the review organ and the applicant and the respondent shall be notified thereof. The extension may not exceed a maximum of 30 days. The decision on administrative reviews may be one of the following:
A. If the specific administrative acts are based on clearly established facts, conclusive evidence, correct applications of law and due processes and their contents are appropriate, the decision shall be to uphold them.
B. If the respondent refuses to perform his statutory duties, the decision shall be for him to perform his duties within a specified time limit.
C. If the specific administrative acts have one of the following circumstances, the decision shall be to annul or change the specific administrative acts or declare them as unlawful. If it is decided to annul or declare as unlawful the said specific administrative acts, the respondent may be ordered to remake the specific administrative acts within a specified time limit:
1. The facts are not clearly established and evidence is inadequate;
2. The basis of application is erroneous;
3. Violating due processes;
4. Exceeding or abusing its authority;
5. The specific administrative acts are clearly improper.
III. Taxation Administrative Litigation
(I). Scope of Taxation Administrative Litigation
A. Taxpayers that disagree with punishment decisions made by tax authorities;
B. Taxpayers that disagree with taxation protective measures carried out by tax authorities;
C. Taxpayers that disagree with taxation coercion measures carried out by tax authorities;
D. Taxpayers that disagree with notices issued by tax authorities, advising the Custom or other related organizations to prevent the taxpayers from going abroad;
E. Taxpayers that disagree with tax authorities’ negligence to their demands or requests;
F. Taxpayers that believe tax authorities have failed to fulfill their legal obligations and who request the proper exercise of power;
G. Taxpayers that have disputes with tax authorities on taxation matters and that disagree with decisions made by taxation administrative reconsideration.
H. Taxpayers that disagree with other administrative activities of tax authorities.
(II). Jurisdiction and Term of Taxation Administrative Litigation
A. Taxpayers that disagree with specific administrative activities of tax authorities can lodge taxation administrative litigation at the people’s court where the tax authorities concerned are located, within 15 days from the date they learn about the activities of tax authorities.
B. In case that taxation administrative reconsideration has been carried out, and that the taxation administrative reconsideration institute agrees with formal decisions made by tax authorities concerned, if taxpayers disagree with decisions made by taxation administrative reconsideration, they can lodge taxation administrative litigation at the people’s court where the tax authorities concerned are located, within 15 days since the arrival of the letter of decision of taxation administrative reconsideration.
C. In case that taxation administrative reconsideration has been carried out, and the taxation administrative reconsideration institute disagrees with formal decisions made by tax authorities concerned and has made changes to the formal decisions, if taxpayers still disagree with decisions made by taxation administrative reconsideration, they can lodge taxation administrative litigation at the tax authority concerned or at the people’s court where the taxation administrative reconsideration institute is located, within 15 days since the arrival of the letter of decision of taxation administrative reconsideration.
