The National Taxation Bureau of the Northern Area (NTBNA), Ministry of Finance states that Company A disagreed with the profit-seeking enterprise income tax payable assessed by the NTBNA and then filed an application for recheck. The amount of tax payable was not changed on the decision of the recheck so the company filed an administrative appeal according to law. The tax due was referred to the branch of the Administrative Enforcement Agency, Ministry of Justice for compulsory execution by the NTBNA because the company failed to pay or furnished a collateral equivalent of one-half (1/2) of the amount of tax payable.     
     The NTBNA explains that according to Paragraph 2, Article 39 of the Tax Collection Act, the tax due referred to compulsory execution should not be held in abeyance if the taxpayer who, filing an administrative appeal according to law because of disagreeing with the tax payable assessed in the tax assessment notice and determined on the recheck decision, is not in the following situations: 1. where the taxpayer has paid one-half (1/2) of the amount of tax payable determined in a recheck decision and filed an administrative appeal in due course; or 2. where the taxpayer has difficulties in paying one-half (1/2) of the amount of tax payable and has furnished an equivalent collateral as security upon the approval of the tax collection authorities; or 3. where the taxpayer has difficulties both in paying one-half (1/2) of the amount of tax payable and in furnishing an equivalent collateral as security and then the tax collection authorities have notified the government authorities concerned to prohibit said taxpayer from transferring or creating other rights over the property of the taxpayer at a value equivalent to the amount of tax payable determined in a recheck decision. 
    The NTBNA further explains that if the taxpayer doesn’t pay one-half (1/2) of the amount of tax payable until after the tax due has been referred to compulsory execution, according to the Decree No. 810858591 issued by the Ministry of Finance on November 5, 1992, the tax collection authority should accept the payment and withdraw the compulsory execution. The said “doesn’t pay one-half (1/2) of the amount of tax payable until after the tax due has been referred to compulsory execution,” only includes the situation that the taxpayer makes the payment by himself after the tax due has been referred to compulsory execution, but not including the situation that the one-half (1/2) of the amount of tax payable is collected through execution procedure enforced by the administrative enforcement authorities. Although Company A filed an administrative appeal according to law, not until Company A paid one-half (1/2) of the amount of tax payable due to the NTBNA’s advise did the compulsory execution be withdrawn.  
    The NTBNA reminds taxpayers that, in order not to encounter the situation that the tax due referred to compulsory execution can’t be withdrawn after one-half (1/2) of the amount of tax payable is collected through execution procedure enforced by the administrative enforcement authorities, please remember to pay or furnish a collateral equivalent of one-half (1/2) of the amount of tax payable determined on the recheck decision, even if the taxpayer disagrees with the decision determined on the recheck decision and files an administrative appeal according to law. For those who still have further questions, please dial the toll-free service number 0800-000321 for inquiries.