An investigation into a number of property developers by the Chinese authorities has found a high percentage of them who are alleged to be under-reporting income in a bid to pay less tax.
China Central Television Station (CCTV) revealed last Friday that an investigation into 39 real estate companies found that most had apparently manipulated profits in their accounting statements.
By doing this, investigators found that the companies, which had been involved in 133 development projects nationwide since 2005, had whittled down their average tax rate to just over 12% from almost 27%.
Geng Hong, director of the ministry's monitoring and investigation department, told CCTV that some companies had done this "in a very serious way" and that the authorities would soon mount a crackdown to get to the root of the problem.
Real estate companies caught "cooking the books" will have to rectify their accounts and pay the full tax amount, but serious offenders will be taken to court, Geng warned.
"We will soon choose another pool of companies to investigate," she warned. "I believe the public is very concerned about it."
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