Corporate and Personal Income Tax Fraud

Decent Essays

Corporate and personal income tax fraud is not a new phenomenon; it is a part of day to day business in the global economy. Where there is worship of money there seems to be fraud in one form or another. China is no different than any other country on this planet; it has honest corporations and dishonest ones also. China is listed as number 8 on the top 10 countries for tax fraud (Berr, 2011). United States is still listed as number one and Canada not even in the top 20. Hong Kong is listed as four as “The ten Biggest Tax Havens within the World” (Said, 2013).
i. Corporate Income Tax / Evasion
As recently as January the 25th of 2014, the mainland's tax commissioner, Wang Jun, says international co-operation to combat tax fraud and evasion will be stepped up according to the South China Morning Post (Shih, 2014). China would fulfil its responsibilities as a big nation in international tax initiatives, while using international co-operation to reform its tax system, Wang said at an Organisation for Economic Co-operation and Development (OECD) taxation forum in Paris this week. (Shih, 2014). Fatca, which will take effect on July 1, requires foreign financial institutions to report to the US government information about American taxpayers or foreign firms in which US taxpayers hold substantial ownership.
In 2012 Beijing recovered taxes worth US $5.7 billion, 30 times the amount in 2008, the tax administration said.
It has reported four cases of tax fraud on the mainland in

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