China phases in joint penal­ties over individual in­come tax vi­o­la­tions, dis­hon­esty

Global Times US Edition - - BIZUPDATE -

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.

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