Proposal for Voluntary Disclosure Procedures in China

6 Journal of Tax Administration 190 (2020)

23 Pages Posted: 8 Jul 2020 Last revised: 8 Jun 2021

See all articles by Noam Noked

Noam Noked

The Chinese University of Hong Kong (CUHK) - Faculty of Law

Yan Xu

University of New South Wales

Date Written: June 9, 2020

Abstract

How should taxpayers who have not complied with their Chinese tax obligations voluntarily correct their tax affairs? Many countries have adopted tax amnesties and voluntary disclosure procedures for that purpose. Unlike those countries, China does not have nationwide voluntary disclosure procedures. However, the Chinese tax authorities frequently reduce or waive penalties for taxpayers who voluntarily disclose their noncompliance and settle their unpaid taxes. This article calls for the adoption of nationwide voluntary disclosure procedures in China and explores the design considerations of such procedures. As China is modernizing its tax laws and strengthening its tax enforcement, this proposal is worth serious consideration.

Keywords: China, Tax Amnesty, Voluntary Disclosure, Tax Enforcement, Tax Evasion, Compliance

JEL Classification: K34

Suggested Citation

Noked, Noam and Xu, Yan, Proposal for Voluntary Disclosure Procedures in China (June 9, 2020). 6 Journal of Tax Administration 190 (2020), Available at SSRN: https://ssrn.com/abstract=3623601

Noam Noked (Contact Author)

The Chinese University of Hong Kong (CUHK) - Faculty of Law ( email )

6/F, Lee Shau Kee Building
Shatin, New Territories
Hong Kong, Sha Tin
Hong Kong

HOME PAGE: http://www.law.cuhk.edu.hk/app/people/prof-noam-noked/

Yan Xu

University of New South Wales ( email )

Kensington
High St
Sydney, NSW 2052
Australia

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