July 30 2021

STA Revises Regulation on the Procedures for Handling Tax Audit Cases

Announcement by State Taxation Administration (STA)

The State Taxation Administration has revised the Work Rules for Tax Audit, and renamed the work rules into the Regulation on the Procedures for Handling Tax Audit Cases, to be implemented from August 11, 2021.

In the ninth article, the regulation stresses protection of administrative counterparty's personal information; the 11th article is added to "keep language, audio or video record" of the entire process of law enforcement actions; the 44th article stipulates that the letter of tax administrative penalty should explain the "evidence of unlawful tax activities"; the 51st article is added to stipulate that "an applicant can apply to defer payment of administrative penalty or make installment payment in case of economic hardship. With the approval of the commissioner of the tax bureau, the payment may be deferred or paid in installments ".