The tax system in China is staggeringly complex, and has been around for a very long time.
The country’s top tax official recently said the country’s tax code had evolved into an “unbelievably complex” system.
It’s a system that’s stapled to a set of “rules,” which are “not designed to be enforced.”
“The government has no authority over the law, the court system, or the courts, but it can certainly change the law,” said Chen Yujun, director of the Center for Tax Reforms at the University of California, Berkeley.
China has the highest corporate tax rate in the world, with some companies paying an average of 40 percent.
The top rate of 15 percent was last raised in 2012, and it has not been raised since.
A few years ago, a number of companies, including China Mobile, bought out Chinese companies, and the government took the reins.
Taxpayers, especially in China, feel under-appreciated.
“Taxpayers are not given the opportunity to participate in the process, the decisions that are made by the government,” Chen said.
Chen said there are only a handful of companies in China that have full control over their taxes.
“There’s only one company that has full control,” he said.
“That’s the government.”
Some tax experts say China’s tax system has become so complex that it’s unfair for companies to pay it.
“Companies have to pay taxes because they’re not paying any other taxes,” said Li Xiu, an associate professor of international finance at Shanghai’s Fudan University.
But other experts say the country is in dire need of a tax overhaul.
“I think China needs to do something about this, not just to avoid the tax crisis that’s happening right now, but to solve the countrys tax system,” said Yang Qiang, chief executive of the Hong Kong-based Hong Kong Global Institute, a think tank.
