Article 69In case of settling tax payment with impounded or sealed-up commodities, goods or other property, tax authorities shall entrust the auction to the auction agencies lawfully set up; in case there is no way for entrusted auction or it is not appropriate for auction, the local commercial enterprises may be commissioned to sell them or the taxpayer may be ordered to dispose of them within a specified time limit; in case there is no way to commission local commercial enterprises for sale and it is beyond the taxpayer's ability to dispose, tax authorities may conduct sales upon appraisal by themselves. The specific measures for such sales upon appraisal shall be formulated by the State Administration of Taxation. Commodities prohibited by the State from free purchases or sales shall be purchased by the relevant organization at the price set by the State.

The remaining part of the income from auction or sales after deducting the tax payable, surcharge on tax in arrears, penalties and expenses for the impounding, sealing up, keeping, auction, sales and so on shall be returned to the taxpayer within three days.

Article 70The loss as mentioned in Articles 39 and 43 of the Law on the Administration of Tax Collection refers to the direct loss incurred to the legitimate rights and interests of the taxpayer, tax withholding agent or tax payment guarantor as a result of liability of tax authorities.

Article 71Other financial institutions as mentioned in the Law on the Administration of Tax Collection refer to trust and investment companies, credit cooperatives, post savings offices and other financial institutions approved by the People's Bank of China, the China Securities Regulatory Commission or other authorities.

Article 72Deposit as mentioned in the Law on the Administration of Tax Collection includes savings deposits by investors of individual proprietorship enterprises, partners of partnership enterprises and individual businesses, funds in the shareholder's capital account, etc.

Article 73In case the taxpayer engaged in production or business operation or the tax withholding agent fails to pay or remit tax within the prescribed time limit, or the tax payment guarantor fails to pay the tax guaranteed within the prescribed time limit, tax authorities shall issue a notice of tax settlement ordering the payment or remission of tax within a time limit not exceeding 15 days.

Article 74In case the taxpayer or its legal representative fails to settle the tax payment due or surcharge on tax in arrears, or provide guaranty for tax payment as required before leaving the territory of the People's Republic of China, tax authorities may notify the administrative department of exit and entry to prevent its exit. The specific measures for preventing exit shall be formulated by the State Administration of Taxation jointly with the Ministry of Public Security.

Article 75The time period for imposing surcharge on tax in arrears as prescribed in Article 32 of the Law on the Administration of Tax Collection starts with the second day from the expiration date for tax payment specified by laws or administrative rules or regulations, or determined by tax authorities pursuant to provisions of laws or administrative rules or regulations, and ends with the day on which the taxpayer or tax withholding agent actually pays or remits the tax.

Article 76Tax authorities at or above the county level shall regularly make proclamations concerning the overdue tax unpaid by taxpayers at the site of tax collection or through media such as radio, television, newspapers, periodicals or computer network, etc.

Specific measures for such regular proclamation shall be formulated by the State Administration of Taxation.

Article 77The relatively large amount of overdue tax mentioned in Article 49 of the Law on the Administration of Tax Collection refers to an amount of overdue tax of not less than 50,000 yuan.

Article 78Tax authorities shall refund the overpaid tax to the taxpayer within ten days from the date of their discovery, or verify and refund the overpaid tax within 30 days from the date of receiving the taxpayer's application for refund in case of the taxpayer's discovery.

The tax refund with interest at the deposit interest rate of the corresponding period of the bank as prescribed in Article 51 of the Law on the Administration of Tax Collection does not include the refund at final tax settlement upon the tax prepaid according to law, or for exportation or tax reductions and exemptions.

Interest of the tax refund shall be calculated at the current deposit interest rate set by the People's Bank of China on the day when tax authorities undertake the procedure for tax refund.

Article 79In case the taxpayer has both refundable tax and overdue tax, tax authorities may use the refundable tax and the interest thereon to offset the overdue tax and refund the remainder, if any, to the taxpayer.

Article 80The liability of tax authorities as mentioned in Article 52 of the Law on the Administration of Tax Collection refers to the improper application of tax laws or administrative rules or regulations or illegal activity in law enforcement by tax authorities.

Article 81The miscalculation or other errors by the taxpayer or tax withholding agent as mentioned in Article 52 of the Law on the Administration of Tax Collection refers to the unintentional misapplication of calculation formula or apparent clerical errors.

Article 82The special circumstances mentioned in Article 52 of the Law on the Administration of Tax Collection refer to the cases where the due tax unpaid or underpaid, not withheld or less withheld, not collected or less collected accumulates to an amount of not less than 100,000 yuan on account of the miscalculation or other errors by the taxpayer or tax withholding agent.

Article 83The time limit for making up the shortage in tax payment or pursuing tax payment or surcharge on tax in arrears as prescribed in Article 52 of the Law on the Administration of Tax Collection starts from the day when the taxpayer or tax withholding agent fails to pay the due tax or underpays tax, or fails to remit the due tax or remits less tax.

Article 84In case the auditing or fiscal authorities make any decision, in undertaking the audit or examination according to law, on any violation of tax law by tax authorities, tax authorities shall follow such decisions. In case the auditing or fiscal authorities discover any violation of tax law by the unit under audit or examination, they shall issue a letter of decision or opinion instructing the unit to pay tax or surcharge on tax in arrears that should be paid to tax authorities. Tax authorities shall, according to the letter of decision or opinion by relevant authorities and the provisions of tax laws or administrative rules or regulations, collect the tax or surcharge on tax in arrears according to the scope of tax administration and remit it to the state treasury according to the budget levels as prescribed by the State.

Tax authorities shall, within 30 days from the date of receiving the letter of decision or opinion, give a written reply concerning the implementation to the auditing or fiscal authorities.

The relevant authorities shall not at their own discretion collect or remit to the state treasury, or dispose or occupy in any other name any tax or surcharge on tax in arrears discovered in the process of their duty execution.

Chapter VI Tax Inspection

Article 85Tax authorities shall establish a scientific inspection system, make overall plans and arrangements for tax inspections, and impose strict controls on the frequency of tax inspections to taxpayers or withholding agents.

Tax authorities shall work out a reasonable guideline for tax inspections, in which the functions and duties of officials respectively in charge of case selection, inspection, hearing or execution shall be clearly defined and separated for mutual check in order to standardize the case selection procedures and tax inspection.

Specific measures for tax inspections shall be formulated by the State Administration of Taxation.

Article 86Tax authorities may exercise their duties and powers set forth in Item 1 of Article 54 of the Law on the Administration of Tax Collection at the business site of the taxpayer or withholding agent. If necessary, tax authorities may, upon approval of the commissioner of the tax bureau (sub-bureau thereof) or office at or above the county level, take back for inspection the taxpayer's or withholding agent's accounting books, accounting vouchers, financial statements and other relevant materials of previous accounting years. Tax authorities shall, however, provide the taxpayer or withholding agent with a list of the documents taken back and return them sound and complete within three months. In case of special circumstances, tax authorities may, upon approval of the commissioner of the tax bureau or office at or above the city with districts or autonomous prefecture level, take back for inspection the taxpayer's or withholding agent's accounting books, accounting vouchers, financial statements and other relevant materials of the current accounting year, but shall return them within 30 days.

Article 87Tax authorities shall, when exercising their duties and powers set forth in Item 6 of Article 54 of the Law on the Administration of Tax Collection, designate specific persons for the responsibility, carry out the inspection on the strength of the nationally unified permit for deposit account inspection, and shall have the obligation of keeping confidential the information about the person under inspection.

The permit for deposit account inspection shall be formulated by the State Administration of Taxation.

Items to be inspected by tax authorities include balance of the taxpayer's deposit account and capital flow.

Article 88In accordance with the provisions of Article 55 of the Law on the Administration of Tax Collection, the duration of tax preservative measures adopted by tax authorities shall not exceed six months normally. In case an extension is necessary for serious cases, it shall be reported to the State Administration of Taxation for approval.

Article 89Tax authorities and tax officials shall exercise their duties and powers for tax inspection in accordance with the provisions of the Law on the Administration of Tax Collection and these Rules.

Tax officials shall present the tax inspection identity card and notice of tax inspection when conducting tax inspections. Taxpayers, withholding agents or other persons involved have the right to reject inspection in case tax officials intend to conduct tax inspection without such card and notice. In case of tax inspection to markets and fairs and concentrated businesses, tax authorities may use the unified notice of tax inspection.

The State Administration of Taxation shall determine the format of the tax inspection identity card and the notice of tax inspection and formulate the specific measures for the use and administration of them.