100+ Free China Certified Tax Adviser — Tax-Related Service Law Practice Questions

Explanation: The Principle of Proportionality (比例原则) is a core sub-principle of Reasonableness in Administrative Law (合理行政原则). It encompasses three elements: appropriateness (妥当性/适当性), necessity (必要性 / least restrictive means / 最小侵害原则), and proportionality in the narrow sense (狭义比例性 / balance of benefits vs burdens). Under this principle, when multiple means can achieve the administrative goal, the agency must choose the measure causing the least damage to the rights and interests of citizens or enterprises.

Explanation: Under PRC Administrative Law, an Authorized Organization (被授权组织) obtains administrative power directly from a Law (法律) or Regulation (法规). It exercises powers in its own name and independently assumes legal liability as the defendant in administrative litigation or reconsideration. In contrast, an Entrusted Organization (受委托组织) derives authority from an administrative delegation/entrustment by an administrative organ. It must act in the name of the entrusting organ, and the entrusting organ bears all legal liabilities and serves as the litigation defendant.

Explanation: Under Article 64 of the PRC Civil Servant Law and Article 7 of the Administrative Discipline Law for Public Officials, the statutory disciplinary sanctions and their respective periods are: (1) Warning (警告) — 6 months; (2) De-merit (记过) — 12 months; (3) Major De-merit (记大过) — 18 months; (4) Demotion (降级) — 24 months; (5) Dismissal from post (撤职) — 24 months; and (6) Expulsion (开除) — permanent termination of public employment.

Explanation: Under Article 15 of the PRC Administrative Licensing Law, where a law or administrative regulation has not been formulated, Provincial, Autonomous Regional, and Municipal People's Government Rules (省、自治区、直辖市人民政府规章) may establish temporary administrative licenses. If it is necessary to continue implementing the administrative license after 1 year, the provincial government must propose to the provincial People's Congress or its Standing Committee to enact a local regulation (地方性法规). Otherwise, the temporary licensing expires after 1 year.

Explanation: Under Article 42 of the PRC Administrative Licensing Law, an administrative organ shall render a decision on an administrative license within 20 working days from the date of accepting the application (excluding statutory hearing, bidding, auction, and expert evaluation periods). If a decision cannot be made within 20 working days, it may be extended by up to 10 working days upon approval by the person in charge of the administrative organ, and the applicant must be notified in writing of the reasons for extension.

Explanation: Under Article 69 and Article 79 of the PRC Administrative Licensing Law, where a licensee obtains an administrative license through fraudulent means such as deception, bribery, or providing false materials, the license must be Revoked (撤销). Because the defect was caused entirely by the applicant's fraudulent conduct, no compensation is payable. Furthermore, under Article 79, an applicant who obtains a license by fraud shall not apply for the same license within 3 years (and where it involves public security, human health, or ecological safety, criminal liability may be pursued).

Explanation: Under Article 10 and Article 18 of the PRC Administrative Punishment Law (2021 Revision), administrative penalties restricting personal freedom (限制人身自由的行政处罚, specifically Administrative Detention / 行政拘留) can ONLY be established by a National Law (法律 enacted by the NPC or its Standing Committee) and can only be enforced by Public Security Organs (公安机关) or other organs specifically authorized by national law.

Explanation: Under Article 13 of the 2021 Revised PRC Administrative Punishment Law, where laws or administrative regulations have not been enacted, State Council Departmental Rules (部门规章) may only establish Warnings (警告), Notices of Criticism (通报批评), and Fines (罚款) within the limits prescribed by the State Council. They have NO authority to establish penalties restricting personal freedom, revoking business licenses, or ordering suspension of production/business.

Explanation: Under Article 29 of the PRC Administrative Punishment Law, for the exact same illegal act committed by a party, more than one Administrative Fine (罚款) shall NOT be imposed by administrative organs (一事不再罚款原则). However, this prohibition applies strictly to duplicate fines; other distinct types of penalties (e.g., confiscation of illegal proceeds, revocation of permits) or non-punitive tax recovery measures (demanding back taxes and late surcharges) may still be applied concurrently.

Explanation: Under Article 51 of the 2021 Revised PRC Administrative Punishment Law, where facts of an illegal act are clear, evidence is conclusive, and the statutory basis is well-founded, law enforcement officers may render an on-the-spot administrative penalty decision (Summary Procedure) for warnings or fines not exceeding RMB 200 for citizens (natural persons) and not exceeding RMB 3,000 for legal persons or other organizations (increased from RMB 50 and RMB 1,000 in the pre-2021 law).