China’s new rules on fiscal penalties

Recently, the Ministry of Finance ("MOF") has revised the Implementing Measures for Hearings on Administrative Penalties Imposed by the Financial Organs to form the Implementing Measures for Hearings on Fiscal Administrative Penalties (the "Measures"), with effect on March 1, 2022.


The Measures adjust the scope of hearings by adding some matters for hearing and deleting some matters for hearing. In addition, the Measures increase the criteria of the "large amount of fines" imposed by the MOF, specifically, a fine of more than CNY10,000 for citizens and a fine of more than CNY100,000 for legal persons or other organizations; and clarify that the criteria of "larger amount" and "larger value" in the administrative penalties such as confiscation of illegal income and of illegal property are consistent with the criteria of "larger amount" for imposition of fines. To optimize the hearing process, the Measures propose to adjust the time and content of the power of attorney submitted by the parties, extending the time limit for submitting the power of attorney from three days before the hearing to the date before the hearing is held, and stipulate that the power of attorney should specify the scope of authority.


Source: http://tfs.mof.gov.cn/caizhengbuling/202201/t20220124_3784602.htm


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