China Cracks Down on Tax Evasion3rd February 2022
China may be its own unique nation, but it has one thing in common with many other countries around the globe: It’s fed up with tax evasion. In fact, China is taking a zero-tolerance stance, putting common tax-avoidance practices on notice—specifically, shell companies, fraudulent export data devised to reap tax benefits, and fake invoices created to help lower tax bills. To help identify high-risk industries and taxpayers, China’s tax authorities (SAT) is enlisting the help of credit and risk analytic resources pooled from SAT, the Ministry of Public Security, the Supreme People’s Procuratorate, the General Administration of Customs, the People’s Bank of China, and the State Administration of Foreign Exchange. Taxpayers suspected of these behaviors can look forward to thorough investigations and also, being under the watchful eye of China’s tax authorities for the foreseeable future.