Supplementary Provisions of the Standing Committee of the National People's Congress Concerning the Imposition of Punishments on Offenses of Tax Evasion and Refusal to Pay Tax

Supplementary Provisions of the Standing Committee of the National People's Congress Concerning the Imposition of Punishments on Offenses of Tax Evasion and Refusal to Pay Tax

Order of the President [1992] No.61

September 4,1992

Adopted at the 27th Meeting of the Standing Committee of the Seventh National People's Congress, Supplementary Provisions of the Standing Committee of the National People's Congress Concerning the Imposition of Punishments on offenses of Tax Evasion and Refusal to Pay Tax are hereby promulgated, and shall come into force on January 1, 1993.

President of the People's Republic of China: Yang Shangkun

Appendix: Supplementary Provisions of the Standing Committee of the National people's Congress Concerning the Imposition of Punishments on offenses of Tax Evasion and Refusal to Pay Tax

With a view to imposing punishments on offenses of tax evasion and refusal to pay tax, the relevant supplementary provisions to the Criminal Law have been formulated as follows:
　
I. "Tax evasion " means that a taxpayer fails to pay or underpays the amount of tax payable by means of forging, revising, concealing or destroying accounting books or supporting vouchers for the accounts without authorization, or of overstating expenses or not stating or understating income in accounting books, or of filing fraudulent tax returns. Where the amount of tax evaded accounts for more than ten percent of the amount of tax payable and is over CNY 10,000, or where the taxpayer evades tax again after having been subject to administrative sanctions imposed by the tax authorities twice due to tax evasion, the taxpayer shall be subject to imprisonment or confinement with hard labor for a term of not more than three years as well as a fine of not more than five times the amount of tax evaded.
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