Reported 8 months ago
Several A-share listed companies in Mainland China have recently disclosed in their announcements that they are being pursued by local governments for tax payments dating back as far as 30 years, with some companies being asked to repay hundreds of millions of yuan in outstanding taxes. Reasons for these tax investigations include policy changes, underreporting, failure to report according to regulations, low pricing in related transactions, and misunderstandings of tax policies. Recent economic challenges in Mainland China are leading to stricter tax enforcement, with no set time limit for tax investigations, theoretically allowing the government to pursue taxes as long as there is evidence. The complexities of tax laws and enforcement make it challenging for companies to navigate these investigations and potential repayments.
Source: YAHOO