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China’s top taxman talks up big data, new legislation as digital shift looks likely for invoices
- The head of China’s tax administration has spoken highly of the potential of big data to make enforcement easier, with digitalisation of invoices likely
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The head of China’s tax authority has spoken on the power of data to close loopholes and increase enforcement efficiency – also saying the country has an “urgent need” for updates in legislation to back it – as analysts anticipate a full digitalisation of invoices, or fapiao, this year.
China’s invoicing process is a crucial component of the country’s tax system. A fapiao is a legal receipt that serves as proof of purchase for goods and services.
“There is an urgent need to promote legislation in taxation at a higher level,” said Hu Jinglin, director of the State Taxation Administration (STA), in a commentary published Friday by the Study Times, the official newspaper of the Central Party School.
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Additionally, Hu said, the administration will “accelerate the revision of tax collection and management, enhance the strength and precision of tax law enforcement, continue to publicise tax laws and use high-level law to help govern more efficiently.”
He also said data will be a key part of the enforcement strategy by aiding in “problem-solving, closing loopholes, risk prevention and enhancing efficiency”.
The biggest change is the sharing of information among various departments, and unifying tax data and management
Data sources will be broadened, Hu said, adding that it is important to improve data quality while making good use of existing resources. He emphasised raising the standard of tax management and law enforcement as China becomes more digitalised.
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