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  • Create Date 4 九月, 2013
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Chinese Anti-tax Avoidance Measures in Action

Anti-tax avoidance has become a common effort of the international tax community to prevent companies from eroding the tax base of the source/resident countries and paying tax nowhere.1 China is no exception. The year 2012 witnessed a significant growth in China’s tax collection through anti-tax avoidance efforts. According to the latest statistics published by the State Administration of Taxation (SAT),2 the total amount of tax collected from anti-tax avoidance efforts amounted to RMB34.6 billion (or approx. US$5.5 billion), representing a year-to-year growth of 45 per cent over the year 2011 and 74 times the amount collected in 2005. The Chinese tax authorities initiated 233 anti-tax avoidance cases in 2012. Among the 175 settled cases, the average amount of tax collected was RMB26.2 million (or approx. US$4.2 million) per case, and the largest single sum of tax collected was RMB843 million (US$134 million). Altogether, there were nine cases in which the reclaimed tax amounted to over RMB100 million and 59 cases where the amount was over RMB10 million.