ForTran Partner Ryan Yan delivered a specialized training session for officials of the Shanghai Pudong New Area Tax Service, addressing regulated administrative enforcement and tax issues arising in bankruptcy. The session covered administrative action classification, the legal nature of late payment surcharges, recent judicial trends, and key updates in the draft PRC Bankruptcy Law.
On 20 November 2025, Partner Ryan Yan of Shanghai ForTran Law Firm was invited to deliver a specialized training session for officials of the Pudong New Area Tax Service. The session, titled “Regulated Enforcement and Tax Issues in Bankruptcy,” addressed key and emerging issues in tax administration in recent years, focusing on two major themes: regulated administrative enforcement and tax matters in bankruptcy.
The first part of the training examined the classification and legal nature of administrative actions. Using examples such as tax treatment decisions, compulsory enforcement decisions, and tax notification documents, Mr. Yan outlined the rules for calculating reconsideration deadlines and the logic behind classifying administrative actions. He emphasized the practical significance of accurately identifying the legal attributes of administrative measures in tax enforcement.
The session then turned to an analysis of the legal nature of late payment surcharghes, explaining the functional differences between surcharges under the PRC Tax Collection and Administration Law and those under the Administrative Compulsion Law. Mr. Yan also reviewed recent judicial tendencies to cap such charges at the amount of the principal tax, as well as the proposed adjustments to the late payment regime in the draft amendments to the Tax Collection and Administration Law.
In the section on tax issues in bankruptcy, Mr. Yan provided an in-depth explanation of key components in the draft amendment to the PRC Bankruptcy Law. He further illustrated, through representative cases, how tax audits, document service, and liability for payment are handled when the taxpayer ceases to exist—for example, in scenarios involving enterprise liquidation, corporate bankruptcy, or the death of a natural person.
Participants engaged in active discussion with Mr. Yan on the application of late payment surcharges and the handling of tax matters in bankruptcy. The session concluded with a productive exchange of views in a highly interactive atmosphere.
