China Plans To Name And Shame Tax Defaulters

by Mary Swire, Tax-News.com, Hong Kong

29 October 2004

In an announcement earlier this week, China’s State Administration of Taxation warned that from next year, it intends to publish the names of individuals and businesses that fail to fulfil their obligations to the tax collector.

It means that from 1st January 2005, the tax authorities will expose the names, tax file numbers, identification numbers and amounts owed by defaulting taxpayers at tax collection points and in the media.

However, for individuals or self-employed business people owing less than 100,000 yuan (US$12,000) in back taxes, the tax office will take a slightly more lenient approach by making their names available only at county-level tax collection points.

According to the decree signed by the director of the State Administration of Taxation, Xie Xuren, tardy business taxpayers will have their names published quarterly, whilst individuals and the self-employed will face exposure every six months.

The tax authorities will also publish the names of tax defaulters whose whereabouts are unknown as and when the need arises.

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