Intensified crackdown on tax fraud

The authorities are intensifying the crackdown on illegal tax-related activities to ensure national tax security, earnestly safeguard the legitimate rights and interests of law-abiding taxpayers, and safeguard fair competition among enterprises and industries.

The State Taxation Administration recently released the details of five cases of tax fraud, saying that local tax and public security departments are working together to crack down on tax-related cases and implement a document on deepening tax reforms that the central authorities issued in March.

What makes the crackdown on tax fraud and other tax-related criminal activities a focal point for public attention is that it is targeting not only entities, but also wealthy people who intentionally cover up their taxable income and make false tax declarations to evade tax.

The moves aim to guarantee taxation serves as effective means to adjust the distribution of national wealth by narrowing the income gaps between the high-income and low-income groups.

It is no secret that the high-income people have more sources of income, and can conceal their wealth and evade tax more easily than average wage-earners. No wonder many compare the personal income tax to wage tax.

In other words, under a loose tax auditing system, the personal income tax has done the opposite to its purpose for too long by taxing the average middle-income group heavily while ignoring the tax evasion and fraud of those perched at the top of the income pyramid.

Those committing tax fraud and evasion should be punished according to the law and their credit records registering their wrongdoings accordingly in a bid to deter others. That said, the taxation, auditing, public security and financial administrative departments must work closely with each other to make sure the tax evaders and fraudsters have nowhere to hide.

21ST CENTURY BUSINESS HERALD