THE Chinese tax administration body is restructuring the implementation of tax regulations and collection, according to a China tax report by accountancy firm Deloitte Touche Tohmatsu. The restructuring will see a division of responsibilities between the State Administration of Taxation (SAT) and regional tax bureaus. The SAT will change the practice of assigning one assessor to an individual or enterprise, creating a rotation system. 'With a more detailed division of responsibilities, the tax authorities will enhance their powers of scrutiny,' Deloitte tax manager Jane Chen said. The central government is expected to be responsible for the collection of value-added tax (VAT) and consumption tax, while the regional governments will administer other tax issues. The Shenzhen regional tax bureau has taken on the responsibilities for collecting foreign-enterprises business tax, corporate income tax, individual income tax, land value appreciation tax, urban real estate tax and stamp duties. The SAT will continue to collect value-added-tax (VAT), consumption tax and corporate income tax from foreign banks. Ms Chen said each region was different in the division of responsibilities, but with some similarities. The change would impose an additional burden on foreign enterprises which would have to deal with two tax bureaus, she said. The report said the check and balance procedure in the administration of taxpayers' activities would be strengthened under the rotation system of assessors. 'This means one can no longer rely on the old guanxi or relationship network to resolve one's tax liabilities,' it said. 'With the reorganisation of the tax system, the tax authorities are now more willing to act against tax offenders and there can be no room for apathy on the part of the taxpayers,' the report said.