According to the requirements in the newly amended Law of The People's Republic of China on the Administration of Tax Collection promulgated on April 28 2001, the initial collection, termination, reduction, exemption and refund of tax shall be implemented in accordance with the law or the relevant requirements stipulated in the administrative regulations formulated by the State Council, provided that the State Council is authorized by the law to formulate the relevant statutes.

No governmental administrative offices, entities or individuals may be permitted to make decisions without authorization, regarding the initial collection, termination, reduction, exemption or refund of tax, or the payment of tax underpaid in violation of the law or the administrative regulations, or other decisions against the tax-related laws or administrative regulations.