Meaning
Official administrative instruments issued by Chinese revenue authorities formally notify an enterprise of the commencement of a tax audit into its accounting records and tax compliance. Promulgated under the Law on the Administration of Tax Collection, a tax inspection notice marks the formal initiation of an on-site audit conducted by the Inspection Bureau of the State Taxation Administration. The administrative instrument identifies the targeted legal entity, names the authorized inspection officers, specifies the operational tax categories under scrutiny, and defines the retrospective auditing period.
Statutory investigative authority remains restricted to the corporate entity and specific calendar years designated on the written notification.
Administrative Prerequisite
Formal delivery of the written summons represents a mandatory prerequisite before tax inspectors can exercise coercive audit powers. Receipt of the document triggers immediate statutory obligations for the enterprise to retain financial accounts and preserve operational vouchers. Unilateral inspection activities undertaken without presenting a valid instrument lack administrative validity under Chinese administrative law.
Investigation Scope
Authorized auditing powers cover examination of commercial books, physical warehouse inventories, electronic databases, and bank account histories. Revenue officials possess statutory power to examine commercial contracts, shipping documents, export rebate filings, and intercompany service allocation files. Inquiries extend to questioning enterprise executives, financial managers, and operational warehouse staff regarding transaction authenticity.
Examination activities must remain strictly focused on the tax types and tax assessment intervals specified in the notice.
Response Protocol
Corporate entities initiate internal audit management routines upon receiving formal notification from the tax bureau. Target companies assemble primary financial ledgers, import declarations, value-added tax invoices, and cross-border payment receipts for inspection. Professional representatives review the identified audit scope to ensure examination requests correspond directly to the statutory authority cited on the form.
Obstructive behavior, failure to provide accounting data, or destruction of transactional files triggers immediate administrative penalties and tax credit demotions. Service of the formal notification marks the statutory boundary after which voluntary disclosures no longer qualify for administrative penalty mitigation.
