Legal analysis: taxpayers and withholding agents engaged in production and business operations fail to pay or remit taxes within the prescribed time limit, and tax payment guarantors fail to pay the guaranteed taxes within the prescribed time limit. The tax authorities shall order them to pay within the prescribed time limit. If it fails to pay within the time limit, the tax authorities may take the following compulsory measures with the approval of the director of the tax bureau (sub-bureau) at or above the county level:

(1) Notify its bank or other financial institution in writing to withhold taxes from its deposits;

(2) To seal up, detain, auction or sell off commodities, goods or other property whose value is equivalent to the tax payable according to law, and use the proceeds from auction or sale to offset the tax.

When the tax authorities take compulsory measures, they shall also enforce the overdue fines unpaid by the taxpayers, withholding agents and tax payment guarantors listed in the preceding paragraph.

Houses and articles necessary for individuals and their dependents to maintain their lives are not within the scope of compulsory enforcement measures.

Legal basis: People's Republic of China (PRC) Tax Collection and Management Law.

Article 1 This Law is formulated with a view to strengthening the administration of tax collection, standardizing tax collection, safeguarding national tax revenue, protecting the legitimate rights and interests of taxpayers and promoting economic and social development.

Article 2 This Law is applicable to the collection and management of various taxes collected by tax authorities according to law.

Article 3 The collection, suspension, reduction, exemption, refund and supplementary payment of taxes shall be carried out in accordance with the law. Where the State Council is authorized by law, it shall be implemented in accordance with the administrative regulations formulated by the State Council.

No organ, unit or individual may, in violation of the provisions of laws and administrative regulations, arbitrarily make decisions on tax collection, suspension, tax reduction, exemption, tax refund, overdue tax and other decisions inconsistent with tax laws and administrative regulations.

Article 4 Units and individuals that are obligated to pay taxes according to laws and administrative regulations are taxpayers.

Units and individuals that have the obligation to withhold and pay taxes according to laws and administrative regulations are withholding agents. Taxpayers and withholding agents must pay taxes, withhold and remit taxes and collect and remit taxes in accordance with the provisions of laws and administrative regulations.