Meaning
Statutory mandates for tax dispute resolution in the People’s Republic of China require the fulfillment of financial obligations before legal challenges proceed. Under the administrative reconsideration prc tax collection law article 88, a taxpayer must pay the assessed tax or provide a sufficient guarantee before filing for an administrative review. This requirement creates a jurisdictional barrier.
It prevents the tax authority from considering an application unless the underlying debt is settled or secured.
Financial Prerequisite
Paying the disputed amount or securing a bond is the primary condition for a taxpayer to seek redress against a tax assessment notice. This step must be completed quickly.
Procedural Sequence
The taxpayer has sixty days from the date of payment or from the date the guarantee is accepted to file for an administrative review. This timeline is strictly enforced by the provincial and national tax offices. If the deadline passes, the right to administrative reconsideration is lost and the taxpayer cannot proceed to the court system for litigation on the merits of the case.
Judicial Bar
Access to the courts in tax matters is generally contingent upon the completion of the reconsideration process. Because the administrative reconsideration prc tax collection law article 88 demands payment first, the judiciary will dismiss suits that bypass this administrative step. The rule ensures that government revenue is protected while the dispute is being adjudicated.
