The Rules for Tax Administrative Reconsideration (Order No.21of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC)) clearly stipulates that specific administrative acts made by exercising discretion, such as administrative punishment, tax verification and determination of taxable income rate, can be reconciled by the applicant and the respondent before the administrative reconsideration organ makes an administrative reconsideration decision, or mediated after the administrative reconsideration is accepted. If the applicant and the respondent reach a settlement voluntarily, they shall submit a written settlement agreement to the tax authorities. A written settlement agreement shall include the following contents: the names, units and addresses of the applicant and the respondent; The facts and reasons for the applicant's request for administrative reconsideration; The facts and reasons for the respondent's defense; The content of reconciliation; Signature or seal of the applicant and the respondent; Settlement date, etc. Reconciliation must be carried out within the legal time. The trial period of administrative reconsideration cases is 60 days, which may be extended for 30 days under special circumstances. The applicant and the respondent shall also reach a settlement agreement within the above-mentioned administrative reconsideration hearing period and submit it to the administrative reconsideration organ. If the time limit is exceeded, no settlement can be made. Mediation shall be conducted by the administrative reconsideration organ according to certain procedures, and finally a mediation document for administrative reconsideration shall be made, which shall have legal effect after being signed by both parties. If the mediation fails to reach an agreement, or the mediation document for administrative reconsideration does not take effect, the administrative reconsideration organ shall make an administrative reconsideration decision in time.