China's tax authorities have postponed the announcement of the final number
of high income earners that have reported their earnings due to technical
reasons.
Motorcyclists ride past an office building
of the tax administration in Shanghai in this undated
photo. (file)
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The annoucement, due on April 10, has to be delayed by several days
to give the authorities more time to calculate figures from a few unwired local
tax bureaus, said Li Linjun, spokesman for the State Administration of Taxation
(SAT), according to the Oriental Morning Post.
"It wouldn't be too late, probably at the end of next week," Li was
cited as saying.
The deadline passed on April 2 for taxpayers who make more than 120,000 yuan
(US$15,400) a year to file their income returns with local tax authorities.
This is the first time the tax administration requires high-income earners to
declare their annual incomes.
As of March 29, the tax authorities across the country had received
1.375 million declarations, far below the six to seven million such earners
estimated by financial experts.
Whether and how to punish those who failed to do so is currently a hot topic
among experts as the population is too large. There is a general belief among
the Chinese that the law no longer applies when a majority of people breach it.
Those who fail to declare their incomes will face fines of between 2,000 yuan
and 10,000 yuan, according to a regulation released last year.
People who filed false statements can be fined up to 50,000 yuan
while penalties for evading taxes can equal five times the amount of unpaid tax
and a jail term, said the rule.
By April 1, some 250,000 people had declared their annual incomes in Beijing
where, experts estimated, the number should be more than 350,000.
In northeastern Heilongjiang Province only a tenth of the expected number had
done so, compared with less than a half in central Hunan Province.