China's Tax Authorities Target Closed Small Businesses

Chinese tax authorities are reportedly intensifying efforts to collect taxes by reinstating tax registrations and reviewing financial records of businesses that have already shut down. These inspections, previously targeting larger companies, are now extending to individual businesses, causing concern. In one documented instance, a deregistered individual business in Jiangxi Province was forced to have its tax registration reinstated for an inspection due to alleged inaccurate income declarations.

• Tax authorities in China are intensifying efforts to collect taxes.
• Tax registrations are being restored for businesses that have already shut down.
• Financial records of closed businesses are being reviewed.
• Tax inspections are increasingly extending to individual businesses.
• A business in Jiangxi Province had its deregistered status reversed and was subject to inspection for inaccurate income declarations.