Notice on Launching Special Tax Inspection

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May 26 – The State Administration of Taxation recently issued a notice regarding the launching of a special tax inspection in 2010 with an effort to further regulate taxation procedures and provide a better tax environment.

Guoshuifa [2010] No. 35, issued on April 16, stipulates the tax inspectoral targets and projects, including industries, business activities and enterprises, as well as the time line and other requirements.

The inspectoral industries are real estate and construction, pharmaceutical distribution, transportation, and non-resident taxation. Recommended inspections include for-profit medical and educational institutions and individual income tax filing status with annual taxable income of more than RMB120,000.

Furthermore, the notice also emphasizes regional tax inspection. The local tax authorities will place specific focus on falsification of transportation invoices and defrauding tax returns for export refunds. Meanwhile, the SAT will also inspect key taxpayers and their branches across the country.