【正文】 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 subrogat。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。 (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。s modities, goods or other property to the value equivalent to the amount of tax payable. Where the taxpayer makes the tax payment within the fixed period of time prescribed in the preceding paragraph, the tax authorities shall immediately lift the tax preservation measures. Where the taxpayer fails to do so on the expiration of the fixed period of time, the tax authorities may, upon approval of the missioner of the tax bureau (or subbureau) at or above the county level, notify in writing the bank or any other financial institution with which the taxpayer has opened an account to withhold and remit the amount of tax payable from the taxpayer39。s deposits to the tune equivalent to the amount of tax payable。 if he pays the amount of tax payable after the distraint, the tax authorities shall immediately remove the distraint and return the modities or goods distrained。 and (6) where the basis for assessing tax declared by the taxpayer is obviously on the low side and without justifying grounds. The specific procedure and measures for the tax authorities to determine the amounts of the tax payable shall be formulated by the petent department for taxation under the State Council. Article 36 The payment or receipt of money or charges in business transactions between an enterprise, or an establishment or site engaged in production or business operations which is set up by a foreign enterprise in China, and its associated enterprises shall be made in the same manner as the payment or receipt of money or charges in business transactions between independent enterprises. Where the payment or receipt of money or charges is not made in the said manner and thus results in a reduction of the taxable revenue or ine, the tax authorities shall have the power to make reasonable adjustments. Article 37 Where a taxpayer engaged in production or business operations or a taxpayer temporarily engaged in business operations fails to plete the formalities for tax registration