A proposal to name and shame companies and individuals dodging tax payments to be introduced under the mainland's new collection code will have a powerful effect on the state's ability to collect income, according to an industry expert. Under the new code, to be introduced on October 15, authorities will be able to publicly disclose errant firms and individuals who have not paid taxes. KPMG partner Peter Kung said yesterday: 'Article 76 is one of the important parts of the law. It could effectively force those who have not paid in full to pay.' Under article 76 of the new Collection Law, tax authorities (above county-level) would be able to 'disclose regularly the information of taxpayers in arrears via the electronic media, on television, newspapers, periodicals or the Internet'. The law is aimed at boosting tax collection and plug grey areas in the code. Mr Kung said multinationals and listed firms could not afford to have their unpaid taxes becoming public information. The requirement is also a deterrent for top managers as they would be blamed for any wrongdoing. 'China's tax environment is changing. It is much tougher than it used to be. Local authorities are also coming under pressure from the central government to collect more taxes,' he said. In March, China announced an overhaul of its income tax system aimed at centralising control over its revenue sources and bringing the tax regime closer to international practices. Beijing will this year share with local governments 50 per cent of income tax - levied on individuals and corporations. Income tax is among a number of charges assigned as a local tax since 1994 and has been the main revenue source for local governments. But with this year's overhaul, Beijing would share 50 per cent of income tax and so stricter administration of tax collection should follow. The arrest of Liu Xiaoqing, China's most famous movie star, is one example. Mr Kung said the new law gave tax authorities more power. Under article 86, tax authorities can check the books and relevant information of taxpayers - even from previous years. 'This is unclear in previous rules, but the new rules give the taxation authorities a more defined role and authority. This is in line with international practices,' Mr Kung said.