【正文】 r sell off the modities, goods or other property distrained or sealed up and use the proceeds therefrom to offset the amount of tax payable. Any housing or articles for use which are necessary for the daily lives of an individual and the family members he supports shall not be subjected to the tax preservation measures. Article 39 Where a taxpayer makes the tax payment within the fixed period of time while the tax authorities fail to immediately lift the tax preservation measures, thus causing losses to the legitimate interests of the taxpayer, the tax authorities shall be liable for pensation. Article 40 Where a taxpayer engaged in production or business operations or a withholding agent fails to pay or remit tax within the prescribed time limit, or a tax payment guarantor fails to pay the guaranteed amount of tax within the prescribed time limit, the tax authorities shall order him to pay the tax within a fixed period of time. Where he fails to pay the tax on the expiration of the time limit, the tax authorities may, upon approval of the missioner of the tax bureau (or subbureau) at or above the county level, adopt the following pulsory enforcement measures: (1) to notify in writing the bank or any other financial institution with which the taxpayer, withholding agent or tax payment guarantor has opened an account to withhold and remit the amount of tax from his deposits。 (2) to distrain, seal up or, in accordance with law, auction or sell off the modities, goods or other property of the taxpayer, withholding agent or tax payment guarantor, to the value equivalent to the amount of tax payable, and to use the proceeds therefrom to offset the amount of tax payable. When executing the pulsory enforcement measures, the tax authorities shall do the same with regard to the surcharge which is unpaid by the taxpayer, withholding agent or tax payment guarantor mentioned in the preceding paragraph. Any housing or articles for use which are necessary for the daily lives of an individual and the family members he supports shall not be subjected to the pulsory enforcement measures. Article 41 No units or individuals other than the statutory tax authorities may exercise the power to adopt tax preservation measures or pulsory enforcement measures provided for in Articles 37, 38 and 40 of this Law. Article 42 The tax authorities shall adopt tax preservation measures or pulsory enforcement measures in pliance with the limits of power and procedures prescribed by law, and they may not seal up or distrain any housing and articles for use which are necessary for the daily lives of the taxpayer himself and the family members he supports. Article 43 Where the tax authorities abuse their power and, in violation of law, adopt tax preservation measures or pulsory enforcement measures, or inappropriately adopt such measures, thus causing losses to the legitimate rights and interests of taxpayers, withholding agents or tax payment guarantors, the tax authorities shall be liable for pensation in accordance with law. Article 44 Where the taxpayer, who defaults on tax payment, or his legal representative needs to leave the territory of China, either of them shall pay the amount of the tax payable and the surcharge thereon with, or provide a guaranty to, the tax authorities before leaving the country. If neither the tax payable and the surcharge thereon are paid nor a guaranty is provided, the tax authorities may notify the exit administration to prevent him from leaving the country. Article 45 Tax collection by the tax authorities shall have precedence over unwarranted claims, except where otherwise provided for by law。 where tax is defaulted before the taxpayer mortgages or pledges his property or before the taxpayer39。s property is distrained, tax collection shall have the precedence over the exercise of the right of mortgage, pledge or lien. Where a taxpayer defaults on tax payment and is at the same time fined and his unlawful gains are to be confiscated upon decision by an administrative department, tax collection shall have precedence over the fine and confiscation of unlawful gains. The tax authorities shall regularly announce the taxes defaulted on by taxpayers. Article 46 Where a taxpayer defaults on tax payment and puts his property in mortgage or pledge, he shall explain to the mortgagee or pledgee about his default on tax payment. The mortgagee or pledgee may request the tax authorities to provide information about the default. Article 47 The tax authorities shall issue a receipt when distraining modities, goods or other property, and issue a detailed list when sealing up modities, goods or other property. Article 48 Where taxpayers merge or separate their businesses, they shall report the matter to the tax authorities and pay off the tax payable in accordance with law. If a taxpayer fails to pay off the tax payable at the time of merger, the new taxpayer after the merger shall continue to fulfill the duty to pay tax。 if a taxpayer fails to pay off the tax payable at the time of separation, the new taxpayer after the separation shall bear joint and several liability for the unfulfilled duty. Article 49 Any taxpayer who defaults on payment of a considerable amount of tax shall, before disposing of his real estate or large amount of fixed assets, report the matter to the tax authorities. Article 50 Where a taxpayer who defaults on tax payment is indolent in exercising his natural creditor39。s rights, or disclaims such rights, or transfers gratis his property, or transfers his property at a low price evidently unreasonable, which the transferee is aware of, thus causing losses to tax collection of the State, the tax authorities may, in accordance with the provisions in Articles 73 and 74 of the Contract Law, exercise the rights of subrogation and rescission. Where the tax authorities exercise the rights of subro