This article was originally published on TP Week,
International Tax Review (www.tpweek.com)
The State Administration of Taxation (SAT) in China has recently
provided an overview of anti-avoidance initiatives in the Chinese
media.
In 2012, the SAT will introduce on top of the electronic
platform that was originally built to monitor value added tax, a
new statistical indicator system, which monitors MNEs'
profitability by geographic regions and industries. The new system
will use data collected from related party transaction filings and
mandatory documentation collected from taxpayers.
New Internal Administrative Guidelines
The SAT has introduced the Provisional Internal Procedures on
Special Tax Adjustments, and the Provisional Internal Procedures on
Joint Decision of Important Special Tax Adjustments Cases, which
will both be effective from March 1 2012. These will serve as an
official standard in anti-avoidance investigation and negotiation
across different
