Chinese Authorities Investigating Tax Evasion Among High Earners

(Bloomberg) -- Chinese tax authorities are investigating individuals who concealed their high incomes and failed to pay taxes.

The State Taxation Administration vowed to implement a guideline on taxation reforms issued by the State Council in March, which said China will strengthen tax supervision on high-income and high net-worth individuals, it said in a statement posted on WeChat Thursday. 

The administration will continue to step up its regular crackdown on tax-related illegal practices, it said. For major crime cases, punishment will be made public and logged into the companies’ or individuals’ credit records shared nationally, in order to promote a fair taxation and business environment, according to the statement, which didn’t name any individual.

The comments came against the backdrop of China’s increasing push for “common prosperity” by narrowing the income gap and reducing inequality. President Xi Jinping chaired a high-level meeting last week that pledged to better regulate high income and “reasonably adjust excessive income.”

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With assistance from Bloomberg