Foreign-funded firms in China have cashed in on taxation
loopholes to evade an immense amount of tax, a member of the
country's top political advisory body said Wednesday.
It is estimated that foreign-funded firms elude 30 billion yuan
(US$3.75 billion) of tax each year in China, said Chen Wangang, a
member of the National Committee of the Chinese People 's Political
Consultative Conference (CPPCC), which is in its annual full
session.
"We are short of professionals capable of fighting tax evasion
and our information system is backward," said Chen from Southwest
China's Chongqing Municipality.
Chen also attributed the problem to some local governments'
indulgence to the multinationals that contribute a lot to local
economic development.
The pace of unifying the dual taxation system for domestic and
foreign-funded enterprises must be quickened, Chen added.
Composed of elite members of the society, national and local
CPPCC committees serve as think tanks for the country's
legislation, administration and law-enforcement.
(Xinhua News Agency March 9, 2006)