• Tue
  • Sep 2, 2014
  • Updated: 8:29am
NewsChina

Netizens applaud US taxation plans amid concerns about corruption in China

PUBLISHED : Saturday, 16 February, 2013, 2:05pm
UPDATED : Saturday, 16 February, 2013, 3:31pm
 

A new US taxation act should be the newest addition to China’s anti-graft tool kit – at least according to many Chinese netizens.

The blog post – entitled America joins China’s anti-corruption campaign – was celebrated with almost 25,000 re-posts on China’s Sina Weibo, China's twitter-like service, where netizens passionately discussed the implications for corrupt officials with families holding green cards.

The post began: “the US is taxing nationals or green-card holders on their assets around the world.”

It continued, “handsome rewards will be given to those who report on the family assets of green-card holding Chinese officials.”

“The US welcome information from Chinese nationals – US Treasury will pay informants 15-30 per cent of tax revenue and keep their identities confidential.”

The post ended with a telephone hotline for the US Internal Revenue Service Office in Beijing.

The speculation stemmed from last month’s adjustments to the Foreign Account Tax Compliance Act (FATCA), an effort by the US Department of Treasury to curtail tax evasion through the avenues of foreign financial assets and offshore accounts.

Under FATCA rules, US taxpayers – including green-card holders – with specified financial assets that exceed certain thresholds must report to the Internal Revenue Service (IRS).

Financial institutions in partnership countries must also identify and classify all clients. It is still an ongoing process due to the complex classification system.

In addition, the IRS Whistleblower Office pays informants up to 30 per cent of the additional tax collected with information on FATCA violations.

While the rules are supposed to target US citizens, they become the headache of many wealthy mainland Chinese who hold an American passport. More of them are thinking about renouncing their US citizenship.

Many netizens replied with enthusiastic comments. “Such a clever act! America will gain fame and fortune by this,” one said.

“The globalisation of anti-corruption,” wrote another.

A third said: “Corrupt Chinese officials will certainly choose to pay money to the US Treasury, rather than to pay their lives by staying in China.”

 

Share

Related topics

For unlimited access to:

SCMP.com SCMP Tablet Edition SCMP Mobile Edition 10-year news archive
 
 

 

6

This article is now closed to comments

donniemcm
Well I think this is a good move overall.
What I am concern is more on the rationale of this move.
It's just that they are covering what happened in the background (ie all this amount of money flowing into properties and assets). We only see a good move from them but we will never see the dirty stuff.
jayb
another stupid Obama move. rich immigrants always have choices. so we ended up getting the poor immigrants who for generations getting more from the govt. than they pay in. now O is going after wealthy immigrants, like CA is going after "wealthy" residents. you know what? rich people can easily MOVE. one reason why TX, NV are gaining what CA lost. well, welcome to 4 more of O T (Obama Time)!
chaz_hen
There was just an article in one of the top American papers today citing research on the fallacy of the hyped (by media) stories on migration due to taxes. In other words, the majority of listed millionaires do not move just because of high taxes and how would it be explained why the clusters of the most rich people still choose to stay in places that have supposedly high taxes (Silicon Valley, NYC, LA, London, Paris)?
I seriously doubt anyone with money would want to take the path of Gerard Depardieu and embrace Putin for Russian citizenship based solely on taxes and then have to live there (which he has yet to do)!
Byebye
What good news!
Hollander323
These corrupt officials are among the smartest people on earth, see how they are going to get around the new tax plan, I am sure they will...
However I don't think they would pay their full US tax under green card because that would mean total revelation of their assets which could shock everyone of us.
aplucky1
love it !
 
 
 
 
 

Login

SCMP.com Account

or