The newly amended Administrative Penalty Law of the People's Republic of China was adopted by the Standing Committee of the National People's Congress on 22 Jan. 2021, and entered into force on 15 July 2021.
A noteworthy revision of the latest Administrative Penalty Law is the provisions on "no penalties for first violation", stipulating that offenders who commit an offense with minor harmful consequences for the first time and promptly make corrections may not be imposed on administrative penalties.
In accordance with the Administrative Penalty Law, the State Taxation Administration released the “No Penalties for First Violation List of Matters on Tax Administrative Penalties” (税务行政处罚“首违不罚”事项清单)( implemented on 1 Apr. 2021). The List clarifies that all of the following three conditions must be met to apply the principle of "no penalties for first violation": (1) taxpayers and withholding agents commit an act specified in the List of the State Taxation Administration for the first time, such as "taxpayers fail to submit all of their bank accounts to tax authorities in accordance with the Law on the Administration of Tax Collection, the implementing rules and other relevant provisions"; (2) the consequences are minor; and (3) taxpayers and withholding agents take the initiative to make corrections before the tax authorities find out, or make corrections within the specified period ordered by the tax authorities.
Cover Photo by 昊蓝 毛 (https://unsplash.com/@maohaolan) on Unsplash
Contributors: CJO Staff Contributors Team
