Perhaps the most significant development in China’s corporate income tax (CIT) arena in recent years is the country’s adoption of general anti-avoidance rules (GAAR), advise Abe Zhao, Grace Xie and Jean Ngan Li. Their introduction indicates that China is taking firm action to rein in abusive tax planning behaviour that results in tax losses, and is bridging the gap with well-established international practices.
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The new guidance is not meant to reflect a substantial change to UK law, but the requirement that tax advice is ‘likely to be correct’ imposes unrealistic expectations
China and a clutch of EU nations have voiced dissent after Estonia shot down the US side-by-side deal; in other news, HMRC has awarded companies contracts to help close the tax gap