Regulations on the Penalties and Sanctions against Fiscal Violations

Regulations on the Penalties and Sanctions against Fiscal Violations

Decree of the State Council of the People's Republic of China(No. 427)

November 30, 2004

The " Regulations on the Penalties and Sanctions against Fiscal Violations", which was adopted at the 69th executive meeting of the State Council on November 5, 2004, is hereby promulgated, and shall come into force on February 1, 2005.

Wen Jiabao, Premier

Regulations on the Penalties and Sanctions against Fiscal Violtions

Article 1 These Regulations is formulated so as to correct fiscal violations, and maintain the State's fiscal and economic order.

Article 2 Each public finance department or auditing organ under the people's government at the county level or above shall, within the scope of its powers, lawfully make decisions on punishment or penalty against fiscal violations.
The dispatched offices of the public finance department under a people's government at the provincial level or above shall, within the prescribed scope of their respective powers, lawfully make decisions on punishment or penalty against fiscal violations; while the dispatched offices of an auditing organ shall, upon authorization by the auditing organ, lawfully make decisions on punishment or penalty against fiscal violations.
If necessary, the State Council may lawfully adjust the scope of power of the public finance departments and their dispatched offices (hereinafter uniformly referred to as the public finance departments), as well as of auditing organs and their dispatched offices (hereinafter uniformly referred to as auditing organs).
An entity who has committed any fiscal violation, its directly responsible person-in-charge and other directly liable persons, or an individual who is a State public servant and has any fiscal violation, shall be imposed upon administrative sanctions in accordance with the law by the supervision organ or its dispatched office (hereinafter uniformly referred to as supervision organ), or by the appointment and dismissal organ within the scope of its authority for personnel management.

Article 3 Where a revenue collection entity or any of its personnel has any of the following acts in violation of the provisions of the State on revenue management, it/he shall be ordered to make make correctionsions, to make up for the payable revenue, and to refund the illegal proceeds within a time limit. The entity shall be imposed upon a warning or circularized a criticism. The directly responsible person-in-charge or any other directly liable person shall be imposed upon the sanction of warning, demerit or gross demerit; if the consequences are serious, he shall be imposed upon the sanction of demotion or dismissal from post:
1. Violating the provisions to set up revenue items;
2. Violating the provisions to unlawfully change the scope, standards, objects or time period of the revenue items;
3. Complying with the original items or rates or changing the name of the revenue-collecting items which have been cancelled by clear order or been suspended, or whose rates have been lowered;
4. Postponing the collection of revenues or not collecting revenues;
5. Unlawfully converting budgetary revenues into extra-budgetary revenues;
6. Other acts in violation of the provisions of the State on revenue management.
Where there are otherwise provisions in the "Law of the People's Republic of China on the Administration of Tax Levying", or other laws or administrative regulations, the administrative sanctions shall be imposed in accordance with such provisions.

Article 4 Where a revenue collection entity or any of its personnel has any of the following acts in violation of the provisions of the State on payment of revenues, it/he shall be ordered to make make correctionsion, to adjust the relevant accounting ledgers, to collect the revenues payable, and to refund the illegal proceeds within a time limit. The entity shall be imposed upon a warning or be circularized a criticism. The directly responsible person-in-charge or any other directly liable person shall be imposed upon the sanction of gross demerit; if the consequences are relatively serious, he shall be imposed upon the sanction of demotion or dismissal from post; if the consequences are serious, he shall be imposed upon the sanction of discharge from public service:
1. Concealing any revenues payable;
2. Retaining, holding back or misappropriating any revenues payable;
3. Spending any revenues payable that shall be turned over to the treasury;
4. Not complying with the prescribed budget level or budget account to include the revenues into the treasury;
5. Refunding money from the State treasury or funds from a special fiscal account in violation of the provisions;
6. Other acts in violation of the provisions of the State on payment of revenues.
Where there are otherwise provisions in the "Law of the People's Republic of China on the Administration of Tax Levying", the "Budget Law of the People's Republic of China", or other laws or administrative regulations, the administrative sanctions shall be imposed in accordance with such provisions.

Article 5 Where a public finance department, a State treasury institution or any of its personnel has any of the following acts in violation of the relevant provisions of the State on turning in or allotting fiscal funds, it/ he shall be ordered to make corrections, and to refund the illegal proceeds within a time limit. The entity shall be imposed upon a warning or circularized a criticism. The directly responsible person-in-charge or any other directly liable person shall be imposed upon the sanction of demerit or gross demerit; if the consequences are relatively serious, he shall be imposed upon the sanction of demotion or dismissal from post; if the consequences are serious, he shall be imposed upon the sanction of discharge from public service:
1. Delaying in turning in, or occupying, the revenues which ought to be turned in;
2. Not complying with the plan on budget or use of funds to ratify the allotment of fiscal funds;
3.
　　......