China Clamps Down Harder on Rich Tax Dodgers(Yicai) Dec. 8 -- Chinese tax regulators have stepped up efforts to curb tax evasion among high-income and high-net-worth individuals, or those earning over CNY1 million (USD141,475) a year or holding more than CNY10 million (USD1.4 million) in investable assets.
Some 1,818 individuals, including celebrities and internet influencers, have been investigated, resulting in tax payments of just over CNY1.5 billion (USD215 million), Dai Shiyou, director general of the State Taxation Administration's tax policy and legislation department, said at a press conference early today.
For example, Chen Zhen, a leading car reviewer and influencer, had dodged almost CNY1.2 million in personal income tax via methods including concealing income, altering the nature of income, and filing false declarations, Dai noted. Following a probe, the authorities recovered CNY2.5 million in owed taxes, overdue fees, and other fines, Dai pointed out.
Chen claimed to have completed the self-assessment and tax payment for previous years, but the authorities found that he was still evading taxes through shell studios, Dai said.
In addition to cracking down on tax evasion by celebrity influencers, the tax regulators have required some individuals who did not legally pay taxes on foreign income to make back payments this year, Dai noted, adding that systemic measures have also been implemented to address tax evasion issues prevalent in specific industries and among certain groups.
Since the State Council released the Provisions on the Reporting of Tax-Related Information by Internet Platform Enterprises in June, more than 7,000 Chinese and foreign platforms have actively fulfilled their obligations to report tax-related data, resulting in a significant improvement in the standardization of the platform economy, said Cai Zili, deputy director of the STA.
Editors: Tang Shihua, Martin Kadiev