Headquarters of the central bank of the People’s Bank of China in Beijing on Dec. 13, 2021. Andrea Verdelli/Bloomberg via Getty ImagesAs China’s long-running property downturn continues to erode a key source of local government funding, business owners and tax professionals say the regime is increasingly turning to tax audits, back-tax collections, fines, and other nontax revenues to fill growing budget gaps.Several entrepreneurs and a Chinese regime insider interviewed by The Epoch Times said tax authorities have intensified reviews of companies’ historical records this year, scrutinizing invoices, financial transactions, payroll records, and tax filings dating back several years. Some analysts estimate that local governments may have already collected billions of yuan through retrospective tax investigations and related enforcement measures. They spoke on condition of anonymity or only publishing their surnames out of fear of reprisal.
Chinas Local Governments Turn to Tax Audits as Land-Sale Revenue Keeps Falling
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