Severe tax evasion warned in real estate projects
( 2003-11-19 15:51) (Xinhua)
Tax evasion is rampant in
China's real estate industry, said a senior official from the State
Administration of Taxation (SAT).
The number of tax evasion cases and amount of tax evaded in the real estate
industry has greatly increased in recent years, said Liu Taiming, head of the
Inspection Department under the SAT, at a seminar on taxation in the real estate
He cited as an example the number of tax evasion cases in southwest China's
Yunnan Province, which were 12 times higher than nine years ago.
Some real estate developers refuse to declare their taxes, overrate the cost
of their projects and disguise their income to avoid paying tax, Liu said.
The SAT plans to build a data sharing network with administrations of land
management, city planning and real estate management, develop files on real
estate developers to track their projects, and tighten checks on project costs.
The real estate industry contributes less than 7 percent of the total tax
revenue of local government.
The Ministry of Finance said Tuesday that China's government revenue totaled
1.82 trillion yuan (US $219.47 billion) in the first ten months of this