Six Measures Launched for Strengthening Tax Administration

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Last updated at: (Beijing Time) Wednesday, November 28, 2001

Six Measures Launched for Strengthening Tax Administration

The State Administration of Taxation lately issued a circular, demanding taxation departments at various levels earnestly carry out the sprit of the third TV-conference on rectifying and regulating market economic order, bringing taxation work to a further extent.

First, to continue to crack down on fraud for export tax refund. Great efforts will be made to carry out administrative and judiciary handling to cases which have been uncovered in tax refund crimes, and enforce tax payment so as to reduce losses. Assistance will be offered to police and justice departments to lay hold on fugitives, destroy criminal hideout, and related departments should also try to make perfect export tax refund management system in order to basically eradicate the export tax fraud.

Secondly, to further clamp down on counterfeit, added-value tax invoice selling activities. Related departments should greatly strike those gangs engaging in tax crime featuring new means as of using network, intelligence, and complete monitor system, pre-caution system to action as quick as possible. In the meantime, related departments should strengthen cooperation with police department to improve work efficiency. In addition, "buyer market" and "seller market" for added-value tax invoice should be thoroughly wiped out.

Thirdly, to continue to intensify individual income tax's management and inspection. To some illegal conduct as individual income tax refund, to those improving income tax reduction standard without authorization and other behaviors related departments should strictly enforce the inspection so as to maintain tax law.

Fourthly, to carry out special inspection in construction industry, real estates industry, flea market and refueling station.

Fifthly, to clear up and rectify various documents for illegal taxation.

Sixthly, to carry out moral rectification in taxation work.

State Administration of Taxation of China

The SATC was set up to develop a transparent market-oriented tax system. It strives to equalize the tax burden while honing redistributive impact; reduce distortions; and rationalize government accounts.

To boost tax revenues, the administration cut rebates and exemptions, but since the extra taxes could not make up for consequent losses in foreign investment, it raised the value-added tax (VAT) rebate for foreign-invested enterprises (FIEs) in sectors or locations that the government sought to promote and granted import tariff exemptions for desirable items.

Functions and Responsibilities

The SATC, which reports directly to the State Council, is responsible for:

1.Helping draft related laws, regulations, rules, revenue plans and programs;

2.Recommending tax reforms and taxation policies, and helping formulate rules for implementing them;

3.Studying the sharing of taxation power between central and local governments, and participating in the study of macroeconomic policies;

4.Collecting and administering central tax, taxes shared by central and provincial governments, agricultural tax and fees;

5.Guiding the collection/administration of local taxes;

6.Overseeing the reduction and exemption of industrial, commercial and agricultural taxes when needed;

7.Participating in international negotiations related to foreign taxation;

8.Handling taxation on import and export commodities as well as export-refunding affairs;

9.Administering the personnel affairs, wages, organizational setup and overheads in the State Tax System; and

10.Administering and nominating the leaders of the provincial-level tax administrations.

By PD Online Staff Li Yan

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