The State Taxation Administration recently released the revised Administrative Measures for the Exposure of Entities Violating Major Tax Laws or Acting in Bad Faith, to be implemented from February 1, 2022.
It is the third time that the STA revises the Measures since it was released for the first time in 2014. There are 12 revisions, which raise the standards for the determination of some dishonest entities, including raising the amount of evaded tax in arrears to 1 million yuan from 10,000 yuan, and increasing the amount of falsely issued ordinary VAT invoices to more than 4 million yuan. The Measures included four types of violating entities into the scope of dishonest entities, such as those withholding agents who do not pay or underpay the taxes that have been deducted and collected and the amount has exceeded 1 million yuan. It is clarified that only the information of the legal person, responsible person and actual person in charge of the violating entities would be exposed.