China Tax Alert - Issue 19, July 2014
On 3 July 2014 the Chinese State Administration of Taxation (SAT) released draft GAAR administrative measures for public comment. The draft GAAR administrative measures provide guidance on when a tax avoidance scheme is in point, on the internal tax authority protocols for selection of GAAR cases, on the documentation which may be demanded from taxpayers, and on the manner in which tax adjustments for unwarranted tax benefits can be made. The draft GAAR administrative measures should provide a greater degree of transparency over the procedures by which GAAR cases are administered. However the guidance on the identification of avoidance transactions arguably also widens the transactions caught in the GAAR net. Interested parties have until 1 August 2014 to lodge their comments with the SAT.
© 2020 KPMG Huazhen LLP, a People's Republic of China partnership, KPMG Advisory (China) Limited, a limited liability company in China, KPMG, a Macau partnership and KPMG, a Hong Kong partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited ("KPMG International"), a private English company limited by guarantee. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.