How CORRUPT are Tax Collectors in China?

How CORRUPT are Tax Collectors in China?

Posted in the China Forum


Port Moody, Canada

#1 Apr 30, 2013
Tax Administration
Individual Corruption

According to Transparency International’s Global Corruption Barometer 2010/2011, less than one out of ten surveyed households who had contact with the tax revenue services report to have paid a bribe in the past 12 months.

Business Corruption

According to Global Integrity 2011, tax laws are not always enforced uniformly or without discrimination and in practice, according to the report, some companies actively try to avoid taxes.

Wang Fusheng, the founder of one of the largest private investment groups in China, was arrested for corruption, bribery and evading approximately USD 30 million in taxes. According to a 2010 news article by Global Times, the prosecutors accused Wang of paying CNY 500,000 in bribes to two tax officials in return for the approval of the company’s falsified accounts. The same source also reports that Wang had in 2004, paid CNY 1 million in bribes to the former deputy director of Beijing Local Taxation Bureau (in Chinese) to avoid the overdue fines.

Political Corruption

Wang Jiping, the former head of the local taxation bureau in Beijing, was given a death sentence with a two-year reprieve in May 2012, after being found guilty of accepting CNY 10 million in bribes and embezzling more than CNY 4 million. According to a May 2012 article by Zee News, Wang committed the corrupt acts between 2002 and 2009, and was arrested in August 2010.


The World Bank & IFC: Doing Business 2013:
- A medium-sized company makes an average of 7 payments and spends 338 hours managing the administrative burden of paying taxes at a total tax rate of 63.7% of profits.

Transparency International: Global Corruption Barometer 2010/2011:
- 8% of households who had contact with tax revenue services in the past 12 months report to have paid a bribe.

Port Moody, Canada

#2 Apr 30, 2013

Surrey, Canada

#3 May 1, 2013
Members of the Chinese Communist Party master class pay no taxes at all on their dirty income of bribes and theft!

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