According to Article 41 of the Measures for the Administration of Tax Registration (Order No.7 of State Taxation Administration of The People's Republic of China), if a taxpayer has been listed as an abnormal household for more than three months, the tax authorities may declare his tax registration certificate invalid, and his tax payable shall be levied according to law.

Taxpayers who identify abnormal households and come to fulfill their tax obligations before cancellation can resume production and operation or cancel tax registration normally after they have settled the payable taxes and overdue fines by holding relevant information to the competent tax authorities and filling out the Application for Approval Form for Cancellation of Abnormal Households.