ey-global-tax-policy-outlook-for-2015

China
2.10 Pending tax proposals
• The methods for making tax adjustments stipulated included:
• Re-characterize all or part of the nature of transactions
• The Trial Administrative Measures of Special Tax Adjustment
•
revision, possibly to incorporate BEPS deliverables. The SAT to the contract(s) as “one entity”
is working on a supplementary circular on capital gains on
• Re-characterize the nature of relevant income, deductions,
incorporate comments from the various stakeholders and to
• Reallocate income or deduction
• The Tax Collection and Administration Law is being revised • Any other reasonable methods
and could be released in 2015, which might contain certain
• Timeline for concluding a case
provisions to accommodate China’s latest developments on
tax anti-avoidance and commitments to BEPS..
• In-charge tax bureaus should reach a conclusion and
report to the SAT within nine months from the date that
the case is set up. The nine-month timeline does not
2.11 Consultations opened/closed
include the time for review by the SAT. The timeline for the
• the case.
26
•
Measures were issued, another SAT order, Circular
Consultation closed on 1 August 2014. The Provisional
27 was issued to be effective 1 February 2015.
effective from 1 February 2015.
• The objective of the circular is to enhance the independence
of tax determinations by creating a separate committee to
• According to the Provisional Administrative Measures on
formed within the legal and tax policy department of the tax
•
cross-border transactions)
• Illegal acts in relation to tax evasion or issuance of
law)
•
•
payable).
• The arrangement complies with tax law(s) in form but not
in economic substance.
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27
The outlook for global tax policy in 2015 |
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