Top Biz News
Property companies slammed for back taxes
By Shen Jingting (China Daily)
Updated: 2009-12-31 08:07
 |
Large Medium Small |
The Beijing Local Taxation Bureau published a list this week in the Beijing Daily newspaper of 35 companies that owe a minimum of eight million yuan each in unpaid taxes. Over 80 percent are in real estate and construction industries.
The number of enterprises that have defaulted on their taxes has shrunk from 63 this time last year. According to the list, the reason is largely due to the improved economic climate
There are some exceptions, however, as some companies have not managed to recover.
"Our company has no business now," said a man surnamed Fan from Beijing Wangfu Garden Development Co, which was listed as owing 9.7 million in back taxes. "Originally, we had dozens of people working here, but now they're gone. The company is about to close."
Beijing Wangfu Garden Development Co, once famous in Beijing in the 1990s after several celebrities purchased some of its villas and apartments in Changping district, is located northwest of the city center.
"I had no idea of the company's unpaid taxes," Fan said, "It's hard to call back the money after the company is almost gone."
| ||||
Compared with last year, Beijing Zhongdi almost doubled the amount of unpaid taxes owed, with an original tax of 73 million yuan in arrears by the end of 2008.
"To those defaulted companies, the taxation bureau will tightly supervise their accounts and cash flows," officials from the Beijing taxation bureau said in an interview with Beijing Daily.
"If they insist on deferring, (the bureau) may force them to pay."
The mandatory methods include freezing accounts and withdrawing money by force. Companies may also be required to pay overdue fines.
