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Last updated at: (Beijing Time) Tuesday, January 14, 2003

Liu Xiaoqing Case Stimulated An Upsurge in Payment of Evaded Tax

When dozens of sets of Liu Xiaoqing's house properties across China were auctioned off, the case concerning tax evasion by the firms she run finally came to the end. Yet, who on earth are still on tenterhooks?


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When dozens of sets of Liu Xiaoqing's house properties across China were auctioned off, the case concerning tax evasion by the firms she run finally came to the end. Yet, who on earth are still on tenterhooks?

Statistics show in one month since Liu's tax evasion case was made public, Beijing taxation departments have received an overdue tax worth 138mn yuan. In a breakdown, Haidian Taxation Bureau that is in charge of investigation of the case accounts for two percent of the nation's total tax revenue on individual income. Such a figure means two out of 100 yuan of the national individual income tax was collected in Haidian District, where central theater troupes, CCTV, Beijing TV etc are located. Relevant personages released people set off a high tide of paying evaded tax in Haidian after Liu's case was prosecuted, where the majority was in performing circles.

Since the reform and opening-up to the outside world, numbers of people have raised enormous wealth. However, their tax payments fall far short of their wealth proportion. Many of them have even been playing hide-and-seek with taxation departments. A tax collector once said, "In our society, many of wealthy people are touching pitch, but they have yet been defiled."

Local taxation bureaus nationwide have begun to keep a file on major taxpayers. Though these files may be different in establishment standards in various cities, they all bear the same indication that wealthy people such as Liu Xiaoqing, who have been touching pitch, are now being monitored.

By PD Online Staff Zhu Lizhen




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