Circular on Issuing the Operating Procedures for Tax Investigation
Circular on Issuing the Operating Procedures for Tax Investigation
Circular on Issuing the Operating Procedures for Tax Investigation
Guo Shui Fa [2009] No.157
December 24, 2009
The offices of the State Administration of Taxation and local tax bureaus in all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan,
The revised Operating Procedures for Tax Investigation are hereby issued to you for your earnest compliance and implementation. Please report issues (if any) in the implementation process to the State Administration of Taxation (Investigation Bureau).
Operating Procedures for Tax Investigation
Chapter I General Provisions
Article 1 In order to ensure the implementation of tax laws and administrative regulations, standardize tax investigation work, strengthen supervision and restriction mechanisms, the Operating Procedures for Tax Investigation (hereinafter referred to as the "Procedures") are hereby formulated in accordance with the Law of the People's Republic of China on the Administration of Tax Levying (hereinafter referred to as the "Law"), the Implementing Rules of the Law of the People's Republic of China on the Administration of Tax Levying (hereinafter referred to as the "Implementing Rules") and other relevant provisions.
Article 2 The basic tasks of tax investigation are to investigate and punish tax-related illegal acts in accordance with the law, guarantee the tax revenue, maintain the tax order and promote the tax payment according to the law.
The investigation bureaus conduct the tax investigation according to the law, and perform main duties including inspecting and handling the performance of obligation to pay taxes and withholding obligation by and tax-related matters of taxpayers, withholding agents and other tax-related parties and carrying out other work in relation to the inspection and handling. The specific duties of the investigation bureaus are determined by the State Administration of Taxation pursuant to relevant provisions of the Law and the Implementing Rules.
Article 3 The tax investigation shall be based on facts, take law as the criterion and follow the principles of fairness, openness, justice and efficiency.
The tax investigation shall rely on the masses and the contact and cooperation with relevant departments and entities shall be strengthened.
Article 4 The investigation bureaus shall carry out tax investigation work under the leadership of the tax bureaus to which they are subordinate.
The investigation bureaus at higher level shall manage, guide, assess and supervise the investigation business of the investigation bureaus at lower level, and command and coordinate the law enforcement and case handling.
The investigation bureaus of offices of the State Administration of Taxation and of local tax bureaus at all levels shall intensify the contact and coordination, timely conduct information exchange and sharing, carry out joint inspection on the same object under investigation to the greatest extent, and make handling decisions separately.
Article 5 In investigating and handling illegal cases, the investigation bureaus follow the labor division and restriction principle for case selection, inspection, trial and execution.
An investigation bureau will establish case selection, inspection, trial and execution departments, respectively implementing case selection, inspection, trial and execution work.
Article 6 Tax investigators shall keep confidentiality of trade secrets and individual privacy of taxpayers and withholding agents in accordance with the law.
Tax-related illegal acts committed by taxpayers and withholding agents do not fall within the scope of confidentiality.
Article 7 Tax investigators shall withdraw from the tax investigation if they fall into any circumstance requiring the withdrawal as set forth in the Implementing Rules.
Where an object under investigation requires any tax investigator to withdraw, or a tax investigator puts forward the withdrawal by himself, the director of the relevant investigation bureau shall decide whether the withdrawal is required according to the law. Upon discovery of the fact that a tax investigator falls into any prescribed circumstance requiring the withdrawal, the director of the investigation bureau shall require him to withdraw from relevant matters. The withdrawal of the director of the investigation bureau shall be subject to review and approval by the leader of the tax bureau to which it is subordinate in accordance with the law.
Article 8 Tax investigators shall observe work discipline and abide by professional ethics, and shall not commit any of the following acts:
1. exercising their functions and powers in violation of legal procedures or beyond the scope of authority;
2. making use of their functions and powers to seek benefits for themselves or others;
3. neglecting their duties and failing to perform statutory obligations;
4. divulging state secrets or work secrets and furnishing secret information or details of a case to the object under investigation;
5. employing trickery or intentionally exaggerating or concealing details of a case;
6. accepting lavish dinners and gifts offered by the object under investigation;
7. meeting privately with the object under investigation without the approval; or
8. other acts in violation of laws and discipline.
Where tax investigators abuse their power, ignore their duties, or play favoritism and commit irregularities in enforcing the law and handling the case, they shall be subject to cruel punishments in accordance with relevant provisions; where they are suspected of committing a crime, they shall be transferred to judicial organs for handling according to the law.
Article 9 The tax authorities shall continuously improve the application of information technology in investigation, and make full use of modern information technologies to collect tax-related information and strengthen the administration over investigation and supervision over law enforcement.
Chapter II Jurisdiction
Article 10 The investigation bureaus shall carry out tax investigation within the scope of tax administration of tax bureaus to which they are subordinate.
Tax-related illegal acts other than those specified in the preceding paragraph shall be investigated and handled by the investigation bureaus at the place where such acts take place or are found.
Where tax laws, administrative regulations and the State Administration of Taxation have otherwise provisions on the jurisdiction over tax investigation, those provisions shall prevail.
Article 11 Any dispute arising in the jurisdiction over tax investigation shall be settled by the parties to the dispute through negotiations level by level in line with the principle of facilitation of case investigation and handling; if the negotiation fails, the dispute shall be submitted to the common tax authority at higher level for coordination or decision.
Article 12 Investigation bureaus of offices of the State Administration of Taxation and of local tax bureaus in provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan can take full advantage of tax source management and analysis results of tax-related illegal situations, in combination with local actual conditions, to conduct the grading and classified investigation within the scope of jurisdiction according to the following standards:
1. the scale of production and operation and scale of tax payment of taxpayers;
2. the tax burden level by region, industry and tax category;
3. the frequency of occurrence and degree of seriousness of tax-related illegal acts;
4. the complexity of tax-related illegal cases;
5. the property status and composition of organizational system of taxpayers; and
6. other reasonable classification standards.
The grading and classified investigation shall be planned and determined in combination with investigation and handling of tax-related illegal cases, special tax inspection, special tax rectification and other related work.
Article 13 The investigation bureaus at higher level may, based on the nature, complexity, difficulty in investigation and handling, social impact and other conditions in relation to tax-related illegal cases, organize the investigation and handling of or directly investigate and handle tax-related illegal cases that occur within the jurisdiction.
The investigation bureaus at lower level that have difficulty in investigating and handling major tax-related illegal cases may report such cases to the investigation bureaus at higher level for investigation and handling.
Chapter III Case Selection
Article 14 The investigation bureaus shall get case source information through various channels, carry out collective research, and reasonably and accurately select and determine investigation objects.
The case selection departments are responsible for selecting investigation objects and conduct track management of investigation and handling situations regarding tax-related illegal cases.
Article 15 The investigation bureaus shall implement the investigation in a planned way, and strictly control the number of tax inspections over taxpayers and withholding agents.
An investigation bureau shall formulate the investigation work plan for the next year prior to the end of a year, and after the approval by the leader of the tax bureau to which it is subordinate, implement the plan and report the same to the investigation bureau at the next higher level for filing.
Special tax inspection contents in the annual investigation work plan shall be arranged on the basis of special tax inspections of tax authorities at higher level and determined in combination with actual work.
Upon the approval by the leader of the competent tax bureau, the annual investigation work plan may be adjusted appropriately.
Article 16 The case selection departments shall establish case source information files and carry out classified management over case source information acquired. The case source information mainly includes:
1. financial indicators, tax collection and management data, investigation materials, information exchange and assistant investigation over clues;
2. tax-related illegal cases assigned by tax authorities at higher level for handling;
3. special tax inspection arranged by tax authorities at higher level;
4. tax-related illegal information delivered by relevant departments of tax bureaus;
5. tax-related illegal information reported;
6. tax-related illegal information transferred by other departments and entities;
7. social and public information; and
8. other relevant information.
Article 17 The State Administration of Taxation and its offices and local tax bureaus at all levels set up tax-related illegal case reporting centers in investigation bureaus, responsible for accepting and handling tax-related illegal acts reported by entities and individuals.
Where units and individuals report tax-related illegal acts by means of real name, which, upon verification, recovers the loss in tax revenue for the State, according to their contributions, they will be given corresponding rewards in accordance with relevant provisions of the State Administration of Taxation.
Article 18 The tax-related illegal case reporting centers shall analyze and screen the information reported, distinguish different situations, and handle such information after the approval by directors of investigation bureaus:
1.
......
Guo Shui Fa [2009] No.157
December 24, 2009
The offices of the State Administration of Taxation and local tax bureaus in all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan,
The revised Operating Procedures for Tax Investigation are hereby issued to you for your earnest compliance and implementation. Please report issues (if any) in the implementation process to the State Administration of Taxation (Investigation Bureau).
Operating Procedures for Tax Investigation
Chapter I General Provisions
Article 1 In order to ensure the implementation of tax laws and administrative regulations, standardize tax investigation work, strengthen supervision and restriction mechanisms, the Operating Procedures for Tax Investigation (hereinafter referred to as the "Procedures") are hereby formulated in accordance with the Law of the People's Republic of China on the Administration of Tax Levying (hereinafter referred to as the "Law"), the Implementing Rules of the Law of the People's Republic of China on the Administration of Tax Levying (hereinafter referred to as the "Implementing Rules") and other relevant provisions.
Article 2 The basic tasks of tax investigation are to investigate and punish tax-related illegal acts in accordance with the law, guarantee the tax revenue, maintain the tax order and promote the tax payment according to the law.
The investigation bureaus conduct the tax investigation according to the law, and perform main duties including inspecting and handling the performance of obligation to pay taxes and withholding obligation by and tax-related matters of taxpayers, withholding agents and other tax-related parties and carrying out other work in relation to the inspection and handling. The specific duties of the investigation bureaus are determined by the State Administration of Taxation pursuant to relevant provisions of the Law and the Implementing Rules.
Article 3 The tax investigation shall be based on facts, take law as the criterion and follow the principles of fairness, openness, justice and efficiency.
The tax investigation shall rely on the masses and the contact and cooperation with relevant departments and entities shall be strengthened.
Article 4 The investigation bureaus shall carry out tax investigation work under the leadership of the tax bureaus to which they are subordinate.
The investigation bureaus at higher level shall manage, guide, assess and supervise the investigation business of the investigation bureaus at lower level, and command and coordinate the law enforcement and case handling.
The investigation bureaus of offices of the State Administration of Taxation and of local tax bureaus at all levels shall intensify the contact and coordination, timely conduct information exchange and sharing, carry out joint inspection on the same object under investigation to the greatest extent, and make handling decisions separately.
Article 5 In investigating and handling illegal cases, the investigation bureaus follow the labor division and restriction principle for case selection, inspection, trial and execution.
An investigation bureau will establish case selection, inspection, trial and execution departments, respectively implementing case selection, inspection, trial and execution work.
Article 6 Tax investigators shall keep confidentiality of trade secrets and individual privacy of taxpayers and withholding agents in accordance with the law.
Tax-related illegal acts committed by taxpayers and withholding agents do not fall within the scope of confidentiality.
Article 7 Tax investigators shall withdraw from the tax investigation if they fall into any circumstance requiring the withdrawal as set forth in the Implementing Rules.
Where an object under investigation requires any tax investigator to withdraw, or a tax investigator puts forward the withdrawal by himself, the director of the relevant investigation bureau shall decide whether the withdrawal is required according to the law. Upon discovery of the fact that a tax investigator falls into any prescribed circumstance requiring the withdrawal, the director of the investigation bureau shall require him to withdraw from relevant matters. The withdrawal of the director of the investigation bureau shall be subject to review and approval by the leader of the tax bureau to which it is subordinate in accordance with the law.
Article 8 Tax investigators shall observe work discipline and abide by professional ethics, and shall not commit any of the following acts:
1. exercising their functions and powers in violation of legal procedures or beyond the scope of authority;
2. making use of their functions and powers to seek benefits for themselves or others;
3. neglecting their duties and failing to perform statutory obligations;
4. divulging state secrets or work secrets and furnishing secret information or details of a case to the object under investigation;
5. employing trickery or intentionally exaggerating or concealing details of a case;
6. accepting lavish dinners and gifts offered by the object under investigation;
7. meeting privately with the object under investigation without the approval; or
8. other acts in violation of laws and discipline.
Where tax investigators abuse their power, ignore their duties, or play favoritism and commit irregularities in enforcing the law and handling the case, they shall be subject to cruel punishments in accordance with relevant provisions; where they are suspected of committing a crime, they shall be transferred to judicial organs for handling according to the law.
Article 9 The tax authorities shall continuously improve the application of information technology in investigation, and make full use of modern information technologies to collect tax-related information and strengthen the administration over investigation and supervision over law enforcement.
Chapter II Jurisdiction
Article 10 The investigation bureaus shall carry out tax investigation within the scope of tax administration of tax bureaus to which they are subordinate.
Tax-related illegal acts other than those specified in the preceding paragraph shall be investigated and handled by the investigation bureaus at the place where such acts take place or are found.
Where tax laws, administrative regulations and the State Administration of Taxation have otherwise provisions on the jurisdiction over tax investigation, those provisions shall prevail.
Article 11 Any dispute arising in the jurisdiction over tax investigation shall be settled by the parties to the dispute through negotiations level by level in line with the principle of facilitation of case investigation and handling; if the negotiation fails, the dispute shall be submitted to the common tax authority at higher level for coordination or decision.
Article 12 Investigation bureaus of offices of the State Administration of Taxation and of local tax bureaus in provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan can take full advantage of tax source management and analysis results of tax-related illegal situations, in combination with local actual conditions, to conduct the grading and classified investigation within the scope of jurisdiction according to the following standards:
1. the scale of production and operation and scale of tax payment of taxpayers;
2. the tax burden level by region, industry and tax category;
3. the frequency of occurrence and degree of seriousness of tax-related illegal acts;
4. the complexity of tax-related illegal cases;
5. the property status and composition of organizational system of taxpayers; and
6. other reasonable classification standards.
The grading and classified investigation shall be planned and determined in combination with investigation and handling of tax-related illegal cases, special tax inspection, special tax rectification and other related work.
Article 13 The investigation bureaus at higher level may, based on the nature, complexity, difficulty in investigation and handling, social impact and other conditions in relation to tax-related illegal cases, organize the investigation and handling of or directly investigate and handle tax-related illegal cases that occur within the jurisdiction.
The investigation bureaus at lower level that have difficulty in investigating and handling major tax-related illegal cases may report such cases to the investigation bureaus at higher level for investigation and handling.
Chapter III Case Selection
Article 14 The investigation bureaus shall get case source information through various channels, carry out collective research, and reasonably and accurately select and determine investigation objects.
The case selection departments are responsible for selecting investigation objects and conduct track management of investigation and handling situations regarding tax-related illegal cases.
Article 15 The investigation bureaus shall implement the investigation in a planned way, and strictly control the number of tax inspections over taxpayers and withholding agents.
An investigation bureau shall formulate the investigation work plan for the next year prior to the end of a year, and after the approval by the leader of the tax bureau to which it is subordinate, implement the plan and report the same to the investigation bureau at the next higher level for filing.
Special tax inspection contents in the annual investigation work plan shall be arranged on the basis of special tax inspections of tax authorities at higher level and determined in combination with actual work.
Upon the approval by the leader of the competent tax bureau, the annual investigation work plan may be adjusted appropriately.
Article 16 The case selection departments shall establish case source information files and carry out classified management over case source information acquired. The case source information mainly includes:
1. financial indicators, tax collection and management data, investigation materials, information exchange and assistant investigation over clues;
2. tax-related illegal cases assigned by tax authorities at higher level for handling;
3. special tax inspection arranged by tax authorities at higher level;
4. tax-related illegal information delivered by relevant departments of tax bureaus;
5. tax-related illegal information reported;
6. tax-related illegal information transferred by other departments and entities;
7. social and public information; and
8. other relevant information.
Article 17 The State Administration of Taxation and its offices and local tax bureaus at all levels set up tax-related illegal case reporting centers in investigation bureaus, responsible for accepting and handling tax-related illegal acts reported by entities and individuals.
Where units and individuals report tax-related illegal acts by means of real name, which, upon verification, recovers the loss in tax revenue for the State, according to their contributions, they will be given corresponding rewards in accordance with relevant provisions of the State Administration of Taxation.
Article 18 The tax-related illegal case reporting centers shall analyze and screen the information reported, distinguish different situations, and handle such information after the approval by directors of investigation bureaus:
1.
......