China phases in joint penalties over individual income tax violations, dishonesty
China pushed its social credit system building further on Wednesday by rolling out joint punishments for people with poor credit over the issue of individual income tax.
A management mechanism for individual income tax will be established, read a notice jointly released by the National Development and Reform Commission (NDRC) and the State Taxation Administration.
People who evade or underpay taxes, use others’ names, or maliciously report will be paid close attention to and face punitive measures. Those who engage in major cases of tax violation and dishonesty should be listed as severely discredited and their information will be shared with other national platforms for joint punishment, said the notice.
The notice also pointed out that people who comply with the laws and rules in paying taxes will be provided with more convenience in services and rewards such as certificates of honor.
Such moves are part of China’s larger goal in developing a system that covers the whole of society and a related reward and punishment system, which is due for completion next year.
The broad social credit system, launched in 2014, is expected to rank individuals on merits. Those with unethical behavior will be punished.
The NDRC said that 693,800 items of information concerning 639,200 dishonest entities were added to China’s credit blacklist in July.