"People's Republic of China (PRC) tax collection and management law" article 38 tax authorities have reason to believe that taxpayers engaged in production and business operations have evaded their tax obligations, and may order them to pay the tax payable within a prescribed time limit; If a taxpayer is found to have obviously transferred or concealed his taxable commodities, goods and other property or taxable income within a time limit, the tax authorities may order the taxpayer to provide tax payment guarantee. If a taxpayer cannot provide a tax payment guarantee, the tax authorities may take the following tax preservation measures with the approval of the director of the tax bureau (sub-bureau) at or above the county level:
(1) Notify the taxpayer's bank or other financial institution in writing to freeze the taxpayer's deposits equivalent to the taxable amount;
(2) Seizing or sealing up the taxpayer's commodities, goods or other property whose value is equivalent to the tax payable.
If the taxpayer pays the tax within the time limit specified in the preceding paragraph, the tax authorities must immediately lift the tax preservation measures; If it has not been paid at the expiration of the time limit, with the approval of the director of the tax bureau (sub-bureau) at or above the county level, the tax authorities may notify the taxpayer's bank or other financial institution in writing to withhold tax from its frozen deposits.