Data shows that Chinese taxpayers’ awareness of tax law compliance has effectively improved

China News Service, Beijing, October 12 (Reporter Zhao Jianhua) Data released by the State Administration of Taxation of China on the 12th showed that in the first nine months of this year, tax authorities across the country stopped announcing 12,028 dishonest entities. Among them, in addition to automatically stopping publication when due in accordance with regulations, 1,219 untrustworthy entities applied to stop publication in advance after paying taxes, late fees, and fines to achieve credit repair, and the total number of repairs increased by 30.93% year-on-year. Paying taxes in good faith and in accordance with the law has increasingly become the consensus of business entities.

According to the relevant person in charge of the Inspection Bureau of the State Administration of Taxation, the tax department has actively promoted credit repair to be more convenient and efficient in recent years. These include, when the tax department delivers a "Tax Matters Notice" to the parties included in the information release list of untrustworthy entities with major tax violations, it will also serve a "Credit Repair Notice" and a "Tax Credit Compliance Construction Tip" to provide in-depth interpretation of the policy to untrustworthy entities, clarify case demonstrations, and guide untrustworthy entities to proactively carry out credit repair.

According to relevant regulations, after credit repair, enterprises can reassess their tax credit rating, financing, bidding and other business activities will no longer be restricted, and resume normal operations. The person in charge said that in the next step, while strengthening the management of major tax violations and dishonest entities, the tax department will continue to optimize the credit repair process, strengthen the publicity and guidance of credit repair policies, help more companies rebuild their credit, operate in compliance, and actively create a social atmosphere of "knowing trust, keeping trust, using trust, and increasing trust".

Fan Yong, dean of the School of Finance and Taxation at the Central University of Finance and Economics, said that operating with integrity in accordance with the law is the legal obligation of business entities. Untrustworthy entities must be punished and restricted in the market economy. This is a manifestation of fairness and justice in a society ruled by law, and is also a necessary measure to build a market economy. However, punishment is only a means, and guiding enterprises to operate with integrity in accordance with the law is the purpose. The tax authorities carry out credit repair while implementing penalties for breach of trust, which not only allows them to feel the "pain" of being punished, but also allows them to see the hope of credit repair, which is more conducive to improving taxpayers' awareness of tax law compliance.