Judicial Interpretation Issued to Fight Tax-related Crimes

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Last updated at: (Beijing Time) Friday, November 08, 2002

Judicial Interpretation Issued to Fight Tax-related Crimes

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A judicial interpretation redefining the crime of tax evasion and that of employing threats or violence to avoid paying taxes was issued in Beijing Thursday, as part of China's effort to curb such crimes.

The opinion, issued by the Supreme People's Court (SPC), stipulates that tax evasion sentences could be as severe as seven years in jail, combined with fines not exceeding five times the amount of delinquent taxes.

For an offense to qualify as tax evasion, the amount of the delinquent taxes must account for 10 percent of the offender's total tax payment, and the amount of the delinquent taxes must exceed 10,000 yuan (about 1,200 U.S. dollars).

Other conditions include falsifying or destroying accounting records, making a fraudulent tax declaration or refusing to declare taxes.

Those who employ threats and violence to avoid paying taxes will receive a minimum of three-year imprisonment with a fine twice the amount of their original tax payment.

In China, the central government legislative body is the National People's Congress and its Standing Committee. The SupremePeople's Court, however, is held responsible for issuing judicial interpretations on the principled articles of various laws to helpcourts at different levels reach verdicts.

On Sept. 17 this year, the SPC issued a judicial interpretationdefining the offense of fraudulent request for tax refunds relating to goods destined for export. The most severe penalty forthis offense was life imprisonment plus additional fines, which could be as high as five times that of the offender's illegal gain.

Government officials participating or assisting in such crimes would receive more severe punishments, according to the interpretation.

Tax-related crimes have become increasingly rampant since Chinaadopted the socialist market economy system some two decades ago.

In the first nine months of this year, courts across the country handled a total of 461 cases involving tax evasion and refusal to pay, up 16.41 percent over the same period last year, while the number of cases involving fraudulent requests for refunds relating to goods destined for export was four times that of the same period last year.

Starting in April last year, the Chinese government launched a nationwide drive regulating the order of the market economy, in which the regulation of tax collection was a major component part.

Zhang Jun, vice-president of the SPC, said the issuance of suchjudicial opinions provides a solid judicial basis for fighting thecrimes of evasion, refusal to pay and fraudulent request for tax refunds relating to goods destined for export.

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