China allays concerns regarding tax inspections

BEIJING, June 19 (Xinhua) -- China's tax authority has clarified reported tax inspections, saying it has not launched any nationwide or industry-wide campaign in this respect.

The announcement by the State Taxation Administration (STA) came amid public concerns in the wake of some enterprises reportedly being instructed to pay tax bills dating back to 30 years ago.

There is also no such arrangement as scrutinizing tax bills dating back 20 or 30 years ago, the STA said.

The administration has paid close attention to the relevant reports, and fully understands the concerns of business entities and the public, it added.

Some reported tax inspections targeted the recent tax arrears of enterprises, and some were conducted to remind and notify enterprises of taxation policies and the potential risks of violations. These are routine performances of duties by tax departments in accordance with laws and regulations, the STA said.

It is the duty of the tax departments to support the development of enterprises, said the administration, noting that the sound operation of businesses is the source of tax revenues.

China's tax departments will resolutely implement the preferential tax and fee policies, strictly prevent illegal taxation and tax collection violations, and help various business entities develop in a healthy and law-abiding way, it stated.

The administration said it is the statutory duty of tax departments to strengthen tax oversight, pledging to further optimize tax law enforcement means.

Tax authorities will work to further promote precise oversight and law enforcement, and crack down on tax misconduct to create a business environment of fair competition for law-abiding enterprises, the STA concluded.