Art. 201 punishes tax evasion, provisions on which have been simplified. A new paragraph has been added that exempts from criminal liability those who pay tax arrears, a fine and are subject to administrative punishment.
Any taxpayer who files a false tax declaration
pay or underpays the amount of taxes payable by means of forging, altering, or fails to file a tax declaration by means of [deception] or concealing, or destroying without authorization account books or vouchers for the accounts, or overstating expenses or omitting or understating incomes in account books, or refusing to file his tax returns after the tax authorities have notified him to do so or filing false tax returns shallif the amount of tax evaded [is reasonably high] and accounts for over 10 percent but under 30 percentof the total of taxes payable and over 10,000 yuan but under 100,000 yuan,or if he commits tax evasion again after having been twice subjected to administrative sanctions by the tax authorities for tax evasion,shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall also [or shall only] be fined. not less than one time but not more than five times the amount of tax evaded; if the amount of tax evaded [is big and] accounts for over 30 percent of the total of taxes payable or is over 100,000 yuan,he shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years and shall also be fined not less than one time but not more than five times the amount of tax evaded.
Where a withholding agent who, by using the means mentioned in the preceding paragraph, fails to pay or under-pays the taxes which he has withheld or collected shall, if the amount
accounts for over 10 percent of the total of taxes payable or is over 10,000 yuan,[is reasonably high] shall be punished in accordance with the provisions in the preceding paragraph.[Draft amendment: 扣缴义务人采取前款所列手段，不缴或者少缴已扣、已收税款，数额较大的，依照前款的规定处罚]
Whoever repeatedly commits the acts mentioned in the preceding two paragraphs and goes unpunished shall be punished on the basis of the cumulative total
[Whoever commits the acts mentioned in paragraph one and pays taxes after tax authorities have issued a communication demanding the payment of arrears is charged an overdue fine and is subjected to administrative punishment shall not be subjected to criminal prosecution, unless has received criminal sanctions for tax evasions within the last 5 years, or has been subjected to administrative punishment by tax authorities for more than two times.]
Suggested to replace “by means of deception or concealing” with “by deception, concealing or other means“, to include all those cases not currently covered by the amendment to art. 201
Stated that this amendment will water-down the fight against tax evasion. Suggested to introduce different provisions to punish cases where the amount of tax evaded accounts for more than 30% of what due. Also he suggested to use the payment of tax arrears as a mitigating circumstance.
Suggested to mention “fails to file a false declaration” before “file a false declaration”
Commented negatively upon the exemption from criminal liability of those who evade less than 10% of the tax due. While such measure is likely to reduce law enforcers’ workload, it will nonetheless encourage people to evade tax. Suggested that mitigated sanctions or administrative punishment be adopted on those who do not reach the 10% liability limit.
Proposed to change “if the amount of tax evaded is reasonably high and accounts for over 10 percent” into “if the amount of tax evaded is reasonably high or accounts for over 10 percent“. This would allow to prosecute those who evade amount of tax which are big, even though do not reach the 10% limit.