On 12 October 2026, the State Taxation Administration (STA) published a coordinated disclosure of five major enforcement actions targeting tax intermediaries that illegally assisted clients in tax evasion schemes. The cases span multiple provinces including Anhui, Guizhou, Guangxi, Zhejiang, and Shandong, involving accounting firms, consulting companies, and individual tax practitioners. The STA emphasized that tax intermediaries must not deviate into facilitators of tax crimes, signaling a tightening regulatory environment for the tax agency sector under the revised Tax Collection and Administration Law and the Certified Tax Agent Law.
Key Takeaways
- Systemic Crackdown on Intermediary Misconduct: The five cases collectively reveal patterns of falsifying costs, issuing fake VAT invoices, fraudulently claiming tax preferences, and splitting revenue to reduce tax liabilities. Penalties include substantial fines, confiscation of illegal gains, and criminal referrals for principal actors.
- Enhanced Due Diligence Obligations: Enterprises engaging tax agents are reminded of their primary liability for tax compliance. The STA urges companies to verify intermediary credentials, maintain audit trails of agency instructions, and implement internal controls to prevent collusive tax planning.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement